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Age 65 credits, in plain terms

Once you turn 65, two federal credits can lower your tax — if your income isn't too high.

The age amount credit

  • •At 65+ the 2026 federal age amount is $9,208, converted to a non-refundable credit at the lowest rate (14%).
  • •The 2026 age amount phases out once net income exceeds $46,432, and is fully gone at about $107,819.
  • •So higher-income seniors lose this credit entirely — another reason to keep taxable income moderate.

The pension income credit

  • •You can claim a federal pension income amount of up to $2,000, worth up to $280 of tax reduction in 2026 before Quebec's federal abatement. It is not a $2,000 tax refund.
  • •Employer RPP lifetime pensions qualify at any age. RRIF/LIF payments and registered RRSP annuities normally qualify at 65+, with specific exceptions for payments received because of a spouse's death. Ordinary RRSP withdrawals, CPP and OAS are not federally eligible.
  • •The nine provinces outside Quebec apply their own pension-amount limits, capped by the federal claim. Quebec uses separate retirement-income rules: qualifying RRSP payments, RRIF/LIF income and eligible annuities can qualify at any age, with a separate limit and income phaseout.
  • •These are non-refundable credits: they reduce tax otherwise payable, cannot create a refund by themselves, and do not make every pension payment tax-free.

Eligibility at a glance

  • •Age amount: automatic at 65+, but income-tested — gone for high earners.
  • •Pension credit: choose the actual pension type in the tool and identify qualifying spouse-death payments; eligibility is not simply an age-65 switch.
  • •You can split eligible pension income with a spouse to shift income and unlock credits for the lower-income partner.

Sources: CRA pension income amount and Revenu Quebec retirement-income amount.

Watch the credits in your plan

The Sequencer applies age credits and source-specific pension eligibility separately, using your province, selected pension type and any specified spouse-death exception.

Try the Tool