Looking to upgrade your skills or make a career change in 2025? The Canada Training Credit (CTC) is here to help! With up to $250 per year in refundable tax credit—accumulating to a lifetime maximum of $5,000—you can reduce the cost of eligible training and educational programs.
Whether you’re pursuing a new certification, trade course, or upgrading your skills, this credit puts money back in your pocket. Let’s dive into who qualifies, how much you can get, and how to claim it.
What Is the Canada Training Credit?
The Canada Training Credit is a refundable tax credit that allows eligible working Canadians to offset up to half the cost of eligible training fees each year.
If you qualify, you’ll automatically accumulate $250 annually toward your Canada Training Credit Limit (CTCL), which you can use whenever you pay for eligible education.
The goal? To help Canadians stay competitive in a fast-changing workforce.
Who Is Eligible for the Canada Training Credit?
To qualify for the $250 Canada Training Credit in 2025, you must meet these criteria:
- Be between 26 and 65 years old at the end of the year
- Be a resident of Canada throughout the year
- Have working income of at least $10,000
- Have a net income below the top tax bracket threshold (around $165,000 for 2024)
- File an income tax and benefit return
- Pay tuition or fees to an eligible educational institution for courses or exams in 2025
Canada Training Credit at a Glance
| Feature | Details |
|---|---|
| Annual Credit Amount | $250 |
| Lifetime Maximum Credit | $5,000 |
| Minimum Working Income (2024) | $10,000 |
| Net Income Threshold (2024) | Under $165,430 |
| Age Eligibility | 26–65 years |
| Credit Claimed On Tax Return Line | Line 45350 |
| Eligible Expense Coverage | Up to 50% of tuition/training costs |
| Eligible Institutions | Colleges, universities, certified training orgs |
How Does the Credit Work?
Let’s say you’ve accumulated $1,000 in your CTCL by 2025. You take a course costing $1,200. The CTC will cover up to 50% of that expense, meaning you could claim $600, provided you have enough limit available.
If your CTCL was only $250 at that time, you’d be eligible to claim just $250—the lesser of your CTCL or 50% of course cost.
How to Claim the Canada Training Credit
- Pay tuition or training fees to an eligible institution in 2025.
- Keep your official receipts or T2202 certificate from the school.
- File your tax return and complete Schedule 11 to calculate your credit.
- Claim your CTC on line 45350 of your return.
Once processed, the CRA will either reduce your tax payable or issue a refund for the eligible credit.
Important Notes
- You must file a tax return to accumulate and claim the CTC—even if you don’t owe taxes.
- The credit cannot be used in the same year as the tuition tax credit for the same fees.
- Unused CTC carries forward each year until the $5,000 maximum is reached or age eligibility ends.
The Canada Training Credit is a powerful tool to help Canadians invest in themselves. Whether you’re aiming for a promotion, switching industries, or simply upgrading your skills, the $250 annual credit can reduce your financial burden.
With lifetime eligibility of up to $5,000, it pays to check your Canada Training Credit Limit and make your next move in 2025.
So don’t wait—file your taxes, check your eligibility, and claim what’s yours today!
FAQs
Can I use both the Canada Training Credit and Tuition Tax Credit?
No. You must choose one. You can’t use the same tuition fees to claim both credits in the same year.
What happens if I don’t use my CTC this year?
Unused CTC carries forward, allowing you to use it in future years—up to a maximum of $5,000 over your lifetime.
Can I use the credit for online courses?
Yes, as long as the course is from an eligible institution or training provider, including some certified online platforms.