Whether an education cost gets tax relief in Canada depends on who paid for it, what kind of course it is and whether you are an employee or self-employed. This page sorts each case and sends you to the page that covers it in full; the two questions it answers itself are what happens when your employer pays for training and what a self-employed person can write off. It is part of our guide to Canadian tax deductions and credits.
Category 1: Post-secondary tuition
Fees for courses at a Canadian university, college, CEGEP or other certified post-secondary school (and, for degree courses, some foreign universities) earn the non-refundable tuition tax credit, based on the amount your school reports on a T2202 slip. What counts as eligible tuition, the provincial credits, and the rules for carrying unused amounts forward or transferring them to a parent, grandparent or spouse are on the tuition tax credit page.
If you need to read your slip first, the T2202 tuition slip explained goes through each box.
Category 2: Adult training and the Canada Training Credit
For working adults paying for a course at a certified institution, the Canada Training Credit is a refundable credit: you build up room each year you qualify, and part of your eligible fees can be claimed against that room even if you owe no tax. Who builds room, how much, and how the claim is calculated are explained on the Canada Training Credit page.
Category 3: Employer-paid education benefits
If your employer pays for your education or training:
- If training is primarily for your employer’s benefit (e.g., company-required courses, software training for your role): the benefit is generally non-taxable. It does not go on your T4, and you cannot also claim a deduction.
- If training is for your personal career advancement (a general degree that benefits you beyond this job): CRA may consider it a taxable benefit to be included in your income.
How employer-paid perks are taxed in general is covered in what taxable benefits are.
Employee training and T2200
In rare cases, if an employer requires an employee to take a course as a condition of employment and the employee pays out of pocket, the cost may be deductible as an employment expense under T2200. This is uncommon: most training is either employer-paid or voluntary, and student tuition usually belongs under the tuition tax credit.
Category 4: Self-employed professional development
If you are self-employed, training and professional development costs are deductible as business expenses on Form T2125 (the T2125 guide shows where they go), provided:
- The training maintains or improves skills in your current field of business (not a new career)
- It is directly related to your income-earning activities
- The cost is reasonable
Examples that generally qualify:
- A freelance graphic designer taking an advanced software course
- A plumber attending a code update seminar
- A coach taking continuing education required to maintain certification
Examples that generally do NOT qualify:
- An accountant taking a cooking course for personal interest
- A self-employed tradesperson paying for university to enter a different profession
- Online courses for general life skill improvement
The rest of the business-expense rules are in the guide to self-employed tax deductions.
Category 5: Professional designation fees and dues
Annual fees you must pay to a professional regulatory body to keep your job or practice (CPA dues, law society fees, nursing or engineering registration) are deducted on Line 21200, not treated as education; the union and professional dues deduction explains which fees count. A deduction and a credit are valued differently, as the difference between a tax deduction and a tax credit explains.
Summary: which category applies to you?
| Situation | Category | Claim |
|---|---|---|
| University or college tuition | Tuition credit | Line 32300 (T2202 required) |
| Eligible adult training course | Canada Training Credit | Line 45350 |
| Employer paid for required job training | Not claimable (non-taxable benefit) | n/a |
| Self-employed: courses in current field | Business expense | T2125 |
| Professional dues required for work | Employment/business deduction | Line 21200 |
| Courses for a new career | Not deductible | n/a |
Related costs
Professional memberships and the software you use for work fall under which subscriptions you can deduct. If you pay for child care so you can attend school or training, the child care expense deduction page covers what can be claimed.