Filing Your Return -> Public Transit Tax Credit
Income Tax Act s. 118.02
Line 364 Public Transit Pass Tax Credit - eliminated effective July 1, 2017
The Federal 2017 Budget proposes to eliminate this tax credit effective July 1, 2017. The cost of public transit passes and electronic fare cards that relate to public transit use that occurs after June 2017 will no longer be deductible.
The Federal non-refundable tax credit for public transit passes was available for 2006 for the portion of the pass that was used on or after July 1, 2006, even if the pass was purchased earlier. For 2006, only passes of a duration of one month or longer were eligible for the public transit tax credit.
The tax credit was revised effective January 1, 2007 to expand the eligibility criteria:
The public transit pass tax credit is available for the cost of passes for commuting on buses, streetcars, subways, commuter trains and local ferries. A taxpayer can claim the transit pass tax credit on behalf of a spouse or common-law partner, or the taxpayer's children under age 19.
Your pass must provide certain information in order to support your claim for a public transit tax credit, including:
If the pass does not provide all of the above information, the transit user is advised by Canada Revenue Agency (CRA) to retain a dated receipt, or cancelled cheques or credit card statements to support the tax credit claim.
This is a Federal tax credit, and Yukon also provides the same tax credit, on line 5835 of form YT428. It was not available for any other province or territory prior to 2017. The Yukon transit pass tax credit is also eliminated effective July 1, 2017.
Ontario Taxation Act, 2007 s. 103.0.1
The Ontario 2017 Budget introduced a refundable public transit tax credit for seniors, for eligible transit expenses incurred on or after July 1, 2017. To qualify to claim the credit, a taxpayer:
- must be at least 65 years old on the last day of the preceding taxation year, and
- must be resident in Ontario on the last day of the year.
The maximum amount that can be claimed for 2017 is $1,500, for a refundable credit of $225 (15%). In 2018 and subsequent years the maximum credit is $3,000, for a refundable credit of $450.
Eligible transit services include fares that would be paid on eligible Ontario or municipally-operated public transit services, including transit services offered by Metrolinx. The service paid for must also be:
- a short-haul service people would commonly use for a return trip in a single day,
- offered to the general public, and
- operated by a bus, subway, train or tram.
Eligible transit services include those that run from within Ontario to a destination outside Ontario, such as those departing from Windsor to Detroit or Ottawa to Gatineau.
For more information, see Ontario Seniors' Public Transit Tax Credit on the Ontario website.
CRA Resources- Line 364 - Public transit amount
Tax Tip: Keep your public transit passes, and make sure they provide detailed information.
Revised: November 14, 2017
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