The Age Amount is a federal non-refundable tax credit available to Canadian residents aged 65 and older. For 2026, the federal age amount is approximately $8,396, generating a federal tax credit of approximately $1,259 (15% of $8,396). The credit reduces dollar-for-dollar as your net income rises above approximately $42,335, and is completely eliminated at around $98,309. If you do not use the full credit, you can transfer the unused portion to a spouse or common-law partner.
Quick answer: Claim the Age Amount on Line 30100 of your T1 return if you are 65 or older at December 31, 2026. Federal credit worth up to ~$1,259 at incomes below $42,335. Reduces at 15 cents per dollar of income above $42,335. Completely gone above $98,309. Most provinces add their own age amount on top.
Age Amount 2026: Federal Credit at a Glance
| Item | 2026 Amount (Approximate) |
|---|---|
| Federal Age Amount | $8,396 |
| Federal credit rate | 15% |
| Maximum federal tax credit | $1,259 |
| Phase-out starts at net income | ~$42,335 |
| Phase-out rate | 15% of net income above threshold |
| Credit fully eliminated at net income | ~$98,309 |
Note: CRA adjusts the Age Amount and threshold each year for inflation. Check the CRA website or your tax software for the confirmed 2026 figures when filing.
How the Phase-Out Reduces Your Age Amount
The Age Amount decreases by 15 cents for every dollar your net income exceeds the phase-out threshold (~$42,335).
$$ ext{Reduced Age Amount} = $8,396 - [( ext{Net Income} - $42,335) imes 15%]$$
Example — net income of $60,000:
- Excess above threshold: $60,000 − $42,335 = $17,665
- Reduction: $17,665 × 15% = $2,650
- Remaining Age Amount: $8,396 − $2,650 = $5,746
- Federal tax credit: $5,746 × 15% = $862
Example — net income of $42,000 (below threshold):
- Full Age Amount applies: $8,396
- Federal tax credit: $1,259
Provincial Age Amounts
Most provinces also offer an Age Amount credit on their provincial tax calculations. These amounts and thresholds vary by province:
| Province | Provincial Age Amount (approx.) | Provincial Credit Rate |
|---|---|---|
| Ontario | ~$5,908 | 5.05% |
| British Columbia | ~$4,840 | 5.06% |
| Alberta | ~$7,178 | 10% |
| Quebec | Age credit integrated into tax system | — |
| Saskatchewan | ~$4,640 | 10.5% |
| Manitoba | ~$3,728 | 10.8% |
The combined federal + provincial benefit makes the Age Amount meaningfully valuable for lower-income seniors.
Transferring Unused Age Amount to a Spouse
If your federal tax payable is less than the Age Amount credit you would receive, the unused portion does not disappear — you can transfer it to your spouse or common-law partner.
Example:
Geraldine is 67 and has a federal tax bill of $300 before the Age Amount. Her maximum Age Amount credit is $1,259. She can only use $300 of the credit (to reduce her tax to zero). The remaining $959 of unused credit can be transferred to her husband on Schedule 2 — Federal Amounts Transferred from Your Spouse or Common-Law Partner.
This transfer only works for unused amounts — Geraldine cannot transfer an Age Amount she has already used. The spouse receiving the transfer must have enough federal tax payable to benefit from the credit.
Age Amount and the Pension Income Tax Credit
Seniors may also claim the Pension Income Tax Credit on the first $2,000 of eligible pension income (Line 31400). This is a separate credit from the Age Amount:
- Rate: 15% federal credit on $2,000 = $300 federal credit
- Eligible pension: RPP/RRSP annuities, RRIF withdrawals (if age 65+), DPSP, foreign pension income
- OAS and CPP are NOT eligible pension income for this credit
- Can also be transferred to a spouse (Schedule 2)
Together, the Age Amount credit (~$1,259) and the Pension Income Credit ($300) provide up to $1,559 in combined federal tax savings for eligible seniors — before provincial amounts.
Other Senior-Specific Tax Credits and Benefits
| Credit/Benefit | What It Does |
|---|---|
| Age Amount (Line 30100) | Non-refundable credit for age 65+ |
| Pension Income Credit (Line 31400) | 15% credit on first $2,000 eligible pension income |
| Medical Expense Credit | 15% credit on eligible medical expenses above 3% of net income or $2,479 |
| Pension Income Splitting | Transfer up to 50% of eligible pension income to lower-income spouse |
| OAS (Old Age Security) | Monthly benefit beginning at 65; clawback begins at ~$90,997 |
| CPP (Canada Pension Plan) | Monthly benefit based on contributions; can start 60-70 |
| Disability Tax Credit (DTC) | Significant credit for severe and prolonged impairment |
Related Canadian Senior Tax Resources
- OAS Clawback Guide — when and how the Old Age Security repayment works
- Pension Income Splitting — transfer pension income between spouses
- RRIF Withdrawal Rules — minimum withdrawals and tax implications
- CA Disability Tax Credit Guide — claiming the DTC and related credits
- CA Taxes Hub — all Canadian tax guides for 2026
The Age Amount tax credit is claimed automatically by most tax software when you enter your date of birth. Even if your income is in the phase-out range, a partial credit is better than none — and if you have a lower-income spouse, the unused portion transferred to them can provide significant additional tax savings.
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