Glossary -> Non-Refundable Tax Credits
Non-Refundable Tax Credits
A non-refundable tax credit can only be used to reduce federal or provincial/territorial taxes to zero. It will not generate a payment from the government if no taxes are payable. See:
Tables of most non-refundable personal tax credits (and applicable tax rates), except Quebec
Political contribution tax credits - federal and provincial/territorial
Non-refundable tax credits are calculated separately for the federal and provincial tax credits, and are often based on different amounts federally and provincially. See the link above for the tables of most of these tax credits.
The tax rate used to calculate non-refundable tax credit is the lowest federal tax rate, and for provincial/territorial tax credits is the lowest provincial/territorial tax rate, except for Quebec. Quebec residents calculate their non-refundable tax credits at a rate of 20%.
The unused portions of some non-refundable tax credits can be transferred to another taxpayer, such as a spouse, or in the case of tuition and education tax credits, a parent or grandparent. The disability tax credit can be transferred to a spouse or supporting taxpayer. Some non-refundable tax credits can be used by either spouse.
See our Filing Your Return page for further information on many of these tax credits.
Revised: October 26, 2023