Skip to content

Pensions

Pension Income Amount (Line 31400): The Up-to-$2,000 Tax Credit

If you receive eligible pension, superannuation or annuity income, you can claim the pension income amount on line 31400: the lesser of $2,000 or your eligible pension income. What counts as eligible depends on whether you are under 65 or 65 and older.

Last verified How we check our facts

Key points

  • The federal claim is the lesser of $2,000 or the amount from the line 31400 chart.
  • Eligible income differs for people under 65 and 65 or older (the CRA lists both).
  • Not eligible: foreign pensions that are tax-free in Canada under a treaty, and income from a U.S. IRA.
  • Provinces have their own pension income amounts.

With pension income splitting

If you split pension income with your spouse, each of you recalculates the amount using Form T1032, and each claim is limited to $2,000.

Related

Pension Income Splitting in Canada: How It Works (Form T1032) You can move up to 50% of your eligible pension income to your spouse or common-law partner on your tax returns, which can lower your combined tax. Both of you complete and sign Form T1032 and file it with your returns by the deadline. You can choose a different percentage each year. How Pension Income Is Taxed in Canada Pension income such as CPP, OAS and workplace pensions is taxable and is added to your other income at your normal tax rates. Tax may be withheld at source; you can reduce what you owe with the pension income amount, pension income splitting, and other credits for seniors.

Sources

North Help Desk is an independent guide, not a government website. Rules, amounts and phone hours can change; always confirm on the official page before you act. Spotted something out of date? Tell us.