Age Amount and Senior Credits

If you are turning 65 soon, or helping a parent navigate their tax return, you may have come across the “Age Amount” or heard that seniors qualify for certain credits. These tax measures are designed to reduce the income tax burden for older Canadians, particularly those with modest to moderate incomes. Yet many people do not fully understand how these credits work or how to make the most of them.

This matters when you are planning for retirement income, helping a loved one manage their taxes, or aiming to reduce taxes in a year with lower income. Whether you are newly retired or supporting someone who is, understanding these credits can translate into real financial savings.

What Is the Age Amount?

The Age Amount is a non-refundable federal tax credit available to Canadians who are 65 years of age or older on December 31 of the tax year. It is designed to provide tax relief for older adults with lower to middle incomes.

For the 2024 tax year, the maximum Age Amount is $8,396, which translates into a tax reduction of approximately $1,259(15 percent of $8,396). However, the credit begins to phase out once your net income exceeds $42,335 and is fully eliminated when your income surpasses approximately $103,000.

This means that if your income falls in the middle range, you may receive a partial credit. If your income is below the threshold, you can claim the full amount. The Age Amount is claimed on line 30100 of your tax return.

Important: You must be 65 or older on December 31 of the tax year and file your return to claim the Age Amount. Even if your income is low, this credit will not apply unless you file.

Who Can Claim It and When

You can claim the Age Amount if:

You are 65 or older as of December 31 of the tax year.
You were a Canadian resident throughout the year.
Your net income is below the upper threshold (around $103,000 for 2024).

If your income is too high to claim the credit yourself, but you have a spouse or common-law partner with a lower income, they may be able to claim all or part of your unused credit by using the spousal transfer rules.

This is especially helpful for couples where one spouse has a pension or investment income while the other has little to no taxable income.

Other Federal Tax Credits for Seniors

In addition to the Age Amount, older Canadians may qualify for several other credits that offer targeted tax relief. These can be especially useful when layered together strategically.

Here is a comparison of key federal credits commonly available to seniors:

Credit	Maximum Value (2024)	Key Criteria	Claimed On
Age Amount	$1,259	Age 65+, income under approx. $103,000	Line 30100
Pension Income Amount	$300	Eligible pension income (not CPP or OAS)	Line 31400
Disability Tax Credit	$1,500+	DTC certificate approved by CRA	Line 31600 or 31800
Medical Expense Credit	Varies	Total medical costs above 3% of net income or threshold	Line 33099 or 33199

Each credit reduces your taxes payable and may apply in different scenarios. Many seniors qualify for more than one of these in a given year.

Tip: If you are claiming the Pension Income Amount, consider pension income splitting with a spouse. This can lower both spouses’ tax rates and increase your combined tax credits.

Why These Credits Matter in Your Financial Plan

Taken together, the Age Amount and senior credits can reduce your tax bill by hundreds or even thousands of dollars. This becomes especially powerful when your income fluctuates year to year, such as when transitioning from full-time work to retirement.

You might think about this the next time you:

Begin drawing from your RRIF or pension
Experience a dip in income after a work transition
Provide caregiving support to a lower-income spouse
Take on medical costs that are not covered by insurance