Pension income amount

What qualifies

Eligible income is reported on line 11500, line 11600 or line 12900 of the return, and the rules depend on your age. At 65 or older, lifetime retirement benefits from a registered pension plan, RRIF income, RRSP annuity income, regular annuity payments and elected split-pension income can generally qualify. Under 65, many of these qualify only when received because a spouse or common-law partner died, though lifetime pension plan benefits qualify at any age.

Some income never qualifies. Old Age Security, Canada Pension Plan benefits, death benefits and retiring allowances are excluded, as are amounts you transferred onward into another RRSP, RRIF or annuity.

The 2025 limits and the Ontario claim

For 2025 the federal claim was the lesser of $2,000 and the amount you calculated on the federal worksheet. The Ontario claim for 2025 was the lesser of $1,762 and the federal line 31400 amount, entered on line 58360 of Form ON428. Confirm the figures for the year you are filing.

The credit is calculated by multiplying the claim by the lowest federal rate, which is 14% for 2026. A full $2,000 claim is therefore worth about $280 federally. The age amount is a separate credit with its own income test.

An illustrative example

Suppose someone aged 67 receives $14,000 a year from an employer pension plan and $1,000 from a RRIF, all reported on line 11500. Their eligible pension income is $15,000, so they claim the $2,000 limit. A person aged 62 with only $1,200 of RRIF income generally cannot claim, because the income is not eligible under 65. A person of any age with only CPP and OAS also has nothing to claim. The figures are illustrative.

What to discuss with your accountant

Ask whether your slips show eligible income and where each amount is reported, especially foreign pensions, which have conditions, and RRIF withdrawals if you are under 65. If you and your spouse elect to split pension income, both returns use the election form to work out the claim, so ask how a split changes each person’s credit.

If you are planning to start RRIF or annuity payments, ask how timing around age 65 affects eligibility.