Pension Credit Calculator
Find out which pension payments qualify, how much you can claim, and how much the credit could reduce your federal and provincial tax bill.
2026 tax rules · All ten provinces · No sign-in required
1. Tell us about your income
Enter annual amounts before withholding tax, in Canadian dollars. Use 0 for income you do not receive. Do not count any payment twice.
Regular registered pension plan payments, not a commuted-value payout.
Taxable payments kept as income, excluding direct registered transfers.
Annuity income, not ordinary RRSP cash withdrawals.
Regular qualifying payments; check the payment type on your slip.
Not eligible federally, even after 65. Québec has separate rules.
Include CPP/QPP, OAS and taxable interest once. Exclude GIS and TFSA withdrawals.
2. See your tax savings
Estimated annual reduction in your tax bill
$370.70
Federal: $280.00 + Ontario: $90.70
This is the saving from claiming the pension credit on income you already receive, not a tax-free pension withdrawal or a guaranteed refund.
- Total annual taxable income entered
- $35,000.00
- Income eligible federally
- $20,000.00
- Federal claim base (maximum $2,000)
- $2,000.00
- Ontario claim base
- $1,796.00
How the credit is calculated
Federal: $2,000.00 × 14% = $280.00 before the tax-payable limit.
Ontario: $1,796.00 × 5.05% = $90.70 before tax limits and provincial interactions.
| Tax | Without pension credit | With pension credit |
|---|---|---|
| Federal | $1,307.60 | $1,027.60 |
| Ontario | $1,091.28 | $1,000.59 |
| Total | $2,398.88 | $2,028.19 |
Only the pension credit is switched off in the “without” column. Basic personal and applicable age credits remain in both columns. This is an estimate, not a complete tax return.
What your result means
You have enough eligible income for the maximum $2,000 federal claim base. More pension income will not increase that federal allowance.
Ontario surtax and the basic tax reduction are recalculated, so the change in tax can differ from the basic pension credit value. The health premium is held at the same income in both calculations.
CPP/QPP, OAS and ordinary RRSP withdrawals do not qualify federally. The pension credit is non-refundable: it reduces tax to zero, not below zero, and does not reduce net income for OAS recovery or GIS.
Thinking about sharing pension income? Compare employer pension splits. For the eligibility details, read the pension credit guide.
Current rules and assumptions
Tax year 2026. Rules checked October 26, 2026. The federal rate is 14%, making the standard maximum $280, not the historical $300. Québec’s federal abatement reduces its federal benefit. Ontario’s claim cap is $1,796, Alberta’s $1,753, Nova Scotia’s $1,173 and the other supported non-Québec provincial caps are $1,000. Québec uses its separate $3,541 retirement amount limit and $42,955 income-reduction threshold.
Supports all ten provinces and common domestic retirement income for one Canadian-resident adult. Income is assumed to be both net and taxable income after any deductions, with no employment income, dividend gross-ups or special capital-gain treatment. If deductions apply, use the resulting taxable amounts; a difference between net and taxable income requires a full tax return for accurate age-credit phaseouts.
Includes basic personal and age credits, modelled provincial tax reductions and Ontario surtax/health premium. Québec assumes no spouse and includes the base living-alone amount only when selected. Pension income is unchanged between comparisons; the tax difference isolates the pension credit and its modelled interactions.
Excludes spouse/dependant credits and transfers, foreign/treaty pensions, elected split-pension eligibility, special lump sums, veterans’ benefits, employment credits, medical/donation/disability credits, refundable benefits, OAS recovery payments, provincial drug premiums and territories. Do not use it to calculate the net benefit of a new withdrawal. Different payment types on the same slip may need separate review.
These are dated, verified 2026 rules, not a live CRA feed. Future tax years require a rules review before their figures can be labelled current. Educational estimates only; confirm your final claim in tax software or with a tax professional.
CRA eligibility and claim rules2026 tax rates2026 provincial credit amountsQuébec 2026 amounts