Main credits for seniors
Basic personal amount
For 2026, the federal basic personal amount is $16,452 for net income of $181,440 or less and is reduced at higher incomes. Ontario's amount is $12,989. These non-refundable credits reduce tax payable but do not create a refund by themselves.
Age amount
If you are 65 or older on December 31, 2026, the full federal age amount is $9,208 when net income is $46,432 or less, with a partial amount up to $107,819. Ontario's full $6,342 amount applies at $47,210 or less and phases out by $89,490.
Pension income amount
Eligible pension income may qualify for up to $2,000 federally and $1,796 in Ontario. CPP, OAS, and GIS do not qualify. Registered pension payments and, after 65, RRIF and certain annuity income commonly qualify.
Ontario senior-related credits and benefits
| Credit or benefit | 2026 planning point |
|---|---|
| Ontario age amount | $6,342 full amount; income-tested above $47,210. |
| Seniors' Public Transit Tax Credit | Refundable 15% of up to $3,000 of eligible fares; maximum $450. |
| Seniors Care at Home Tax Credit | Refundable and income-tested; maximum $1,500, with family net income below $65,000. |
| Ontario Energy and Property Tax Credit | Helps offset energy sales tax and property tax or rent. |
| Senior Homeowners' Property Tax Grant | Up to $500 depending on age, status, income, and Ontario property tax paid. |
What “tax-free” can mean
Some receipts are genuinely non-taxable; other income is taxable but credits may reduce tax to little or zero.
| Receipt | Taxable? | Typical GIS impact |
|---|---|---|
| GIS | No | It is the benefit itself. |
| TFSA withdrawals | No | Usually do not count. |
| Federal low-income consumption benefit | No | Usually no direct impact. |
| Ontario Trillium Benefit / OEPTC | No | Usually no direct impact. |
| Gifts and inheritances | Usually no | The receipt usually does not count; later investment income may. |
Credit bases are not guaranteed tax-free income thresholds. With full age and pension amounts, the combined credit bases are $27,660 federally and $21,127 in Ontario, but actual tax depends on income mix, rates, deductions, and other circumstances.
GIS: the key low-income benefit
GIS is a monthly, tax-free payment for eligible low-income OAS recipients. CPP, employment income, RRSP/RRIF withdrawals, employer pensions, interest, dividends, and taxable capital gains generally count; OAS is generally excluded, while TFSA withdrawals and GIS itself usually do not count.
2026 checklist
- File a return even when no tax is payable; GIS, Ontario Trillium Benefit, and several refundable credits rely on filed returns.
- Confirm which pension income is eligible. CPP, OAS, and GIS do not qualify.
- Review pension splitting; up to 50% of eligible income may be allocated by joint election.
- Watch later GIS effects of large RRSP/RRIF withdrawals or capital gains.
- Use current benefit tables because OAS, GIS, and provincial amounts can change.
Official sources
General educational information—not personalized tax advice. Confirm eligibility and indexed amounts when preparing the 2026 return, generally filed in 2027.