Personal credits usually reduce tax payable rather than income itself, which is why it helps to understand them alongside deductions.
What Belongs Here
Use this subsection when the question is about a claim that affects tax payable on the return rather than reducing income before the tax calculation.
Best Starting Pages
Use these pages when the question is about reducing tax payable rather than reducing income directly.
Practical Reader Path
This subsection works best when paired with one close contrast:
- Compare with Personal Deductions if you are deciding whether something lowers income or lowers tax payable.
- Compare refundable and non-refundable credits if the question is whether a credit can still matter when tax owing is low.
In this section
- Basic Personal Amount
Learn what the basic personal amount is and why it is one of the main non-refundable tax credits on a Canadian return.
- Non-Refundable Tax Credit
Understand what a non-refundable tax credit does on a Canadian return and how it differs from both deductions and refundable credits.
- Refundable Tax Credit
Learn what a refundable tax credit is in Canada and why it can still matter even when tax payable is low.