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Pensions

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.

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Only one joint election can be made per tax year. The pension income amount (line 31400) is recalculated for each of you.

Step by step

  1. Check you both qualify.

    Both residents of Canada on December 31, and not living apart for 90 days or more because of a breakdown in the relationship.

  2. Complete Form T1032 together and both sign it.
  3. Enter the amounts on your returns.

    The transferring spouse deducts the split amount on line 21000; the receiving spouse reports it on line 11600.

  4. Split the tax withheld in the same proportion.
  5. File both returns by the filing deadline.

Related

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. OAS Clawback 2026: Recovery Tax Thresholds Explained If your net income is above the threshold, you repay 15% of the excess from your Old Age Security. For July 2026 to June 2027, the threshold is $93,454 (based on your 2025 income); OAS is fully clawed back at $152,062 for ages 65 to 74 and $157,923 for 75 and over. 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.

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