Taxes

If you are a senior, there are many reasons why you should file an annual personal tax return even if you have no income to report. For example:

  • Many government benefit programs use your income tax return to determine if you are eligible.
  • The Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit, a tax-free quarterly payment that helps offset all or part of the GST or HST you pay.
  • Refundable tax credits or grants that you may be eligible for even if you have no earnings or have paid no tax.
  • Pension programs and other benefits that automatically renew when you file your tax return, such as Old Age Security, Guaranteed Income Supplement, Allowance and Allowance for the Survivor.

Filing your tax return by April 30th each year is the best way to ensure that you are getting the benefits you are eligible to receive.

Canada Revenue Agency (CRA)

Filing your tax return

You can prepare and file your tax return on paper or electronically. If you send a paper form, include all of your information slips that show your income and deductions, and keep a copy of your return for future reference. If you file electronically, there are programs that can help you, such as NETFILE.

If you are entitled to a tax refund, the CRA will issue one. If you owe money, there are a number of ways you can pay, including using the CRA’s electronic payment service called My Payment. You can also pay through your bank or by attaching a cheque or money order made out to the Receiver General to the front of your paper return when you file. If you choose this option, make sure to include your Social Insurance Number on the back of your cheque. Learn more about individual tax filing.

If you are the executor of an estate, you are responsible for filing a tax return for the deceased. For more information, please see the safety and security end of life section. 

Canada Revenue Agency (CRA)

Learning about taxes

This free online course can help teach you how to prepare and file a basic income tax and benefit return.

Community Volunteer Income Tax Program

Do you need help to complete your income tax and benefit return?

The Canada Revenue Agency works with community organizations to connect volunteers with eligible low-income individuals with simple tax situations who need help preparing their tax returns. If you have a basic understanding of income tax and you would like to volunteer for this program, contact a participating organization in your community.

Canada Revenue Agency (CRA)

Provincial tax credits and benefits

Fact sheet: Attention seniors! You may be eligible for help with living costs (PDF).

If you are a senior, you may be eligible to receive the following:

  • Ontario Trillium Benefit (OTB) – The OTB combines the Ontario Sales Tax Credit, Ontario Energy and Property Tax Credit and Northern Ontario Energy Credit. Most recipients receive monthly OTB payments.
  • Ontario Senior Homeowners’ Property Tax Grant – Up to $500 for each eligible household to help offset property taxes if you own your own home.
    Toll-free: 1-877-627-6645
  • Seniors’ Home Safety Tax Credit – This is a temporary, refundable personal income tax credit that can help you with renovations to make your home safer and more accessible, helping you stay in your home longer. You are eligible if you are a senior 65+ or if you are someone who has senior relatives living with you. The credit is worth 25% of up to $10,000 in eligible expenses for a senior’s principal residence in Ontario (the maximum credit is $2,500).This credit is available for the 2021 and 2022 tax years.

  • Ontario Seniors Care at Home Tax Credit – This refundable personal income tax credit helps low- to moderate-income seniors 70+ with eligible medical expenses to help them stay in their homes longer. These can include:

    • attendant care (certification required)
    • wheelchairs
    • hospital beds
    • dental, vision and hearing care (for example, dentures, glasses, hearing aids)

    The credit is worth 25% of up to $6,000 in claimable medical expenses, for a maximum credit of $1,500.

  • Seniors Public Transit Tax Credit – This refundable tax credit allows Ontarians 65+ to claim up to $3,000 in eligible public transit expenses and receive up to $450 each year.
  • Low-Income Energy Assistance Program – Low-income customers can get up to $500 in emergency assistance for their electricity bills ($600 if your home is heated electrically) and $500 for their natural gas bills. Contact a social service or government agency
  • Ontario Electricity Support Program – The program lowers electricity bills for lower-income households. The OESP provides a monthly credit to eligible customers based on household income and household size. The OESP credits are applied directly to eligible customers’ bills.

Caregivers may be eligible for the Tax Credit for Caregivers and other benefits. Please see the caregiving section of this guide for more information.

For information about property tax relief for seniors or people with disabilities, please see the housing section of this guide.

Your rights as a taxpayer

As a taxpayer, you have rights including rights related to service, which are outlined in the Taxpayer Bill of Rights. These govern your interactions with the Canada Revenue Agency (CRA . For example, you have the right to be treated professionally, courteously, and fairly. As well, you have the right to complete, accurate, clear and timely information from the CRA. If you feel your rights as a taxpayer are not being respected, contact the Office of the Taxpayers' Ombudsperson at  Toll-free: 1-866-586-3839.

Pensions and other benefits

Contact Service Canada for information about the Old Age Security (OAS) Pension program or the Canada Pension Plan (CPP). When you call, make sure you have the number that appears on your OAS or CPP payment, your Social Insurance Number or the number on your Old Age Security card. If you’d like to have your benefits directly deposited into your bank account each month, be sure to have the full number of your bank account when you call. You can find this information at the bottom of one of your cheques. If you don’t have a chequing account, ask your bank for this information.

For a full list of federal programs and services for seniors, visit canada.ca/seniors

Service Canada

Old Age Security (OAS) pension

If you are 65 years of age or older and have lived in Canada for 10 years or more after turning 18, you can apply for the OAS pension which provides monthly benefits to eligible Canadians. You don’t have to be retired to receive the basic OAS pension. You might receive a letter that lets you know that you will receive the OAS pension. You will need to apply for the OAS pension if you get a letter asking you to apply or if information in the letter you receive is incorrect.

If you are a low- income senior, you may be eligible for other benefits as early as age 60. If you lived or worked in another country that has a social security agreement with Canada, you may be eligible for benefits from Canada or from the other country. Learn more.

Guaranteed Income Supplement (GIS)

If you are a low-income senior living in Canada who receives OAS pension benefits, you may qualify for the GIS as well. The amount you receive is based on your annual income or the combined annual income of you and your spouse or common-law partner. You may have to apply for this benefit if you are already receiving your OAS pension and never applied for the GIS. You can receive your first payment the month after you turn 65. You must file your taxes on time every year to avoid any disruption to your payments. Learn more.

Allowance and Allowance for the Survivor

If you are receiving the GIS and your spouse or common-law partner (same sex or opposite sex) is between 60 and 64 years of age, he or she can apply for the Allowance. Additionally, the Allowance for the Survivor can be claimed by a widow or widower between the ages of 60 and 64. Learn more.

Other benefits

You may also be eligible for other programs, some of which are intended for low-income seniors or for particular groups, such as veterans. Contact Service Canada to find out if you are eligible for a particular program.

Service Canada

Canada Pension Plan (CPP) Retirement Pension

With very few exceptions, all people over the age of 18 who work in Canada (outside of Quebec) pay money into the CPP. You and your employer each pay half of the contributions. If you are self-employed, you pay the whole contribution. The CPP retirement pension you receive is based on how much you contributed and for how long, as well as the age at which you start to receive your pension.

The CPP offers flexibility regarding the age you can choose to begin your retirement pension. The standard age is 65. However, you can choose to start receiving it as early as age 60 or as late as age 70. If you start receiving your pension earlier, the monthly amount you receive will be smaller. If you decide to start later, the monthly amount you receive will be larger. As a result of this flexibility, it is important to note that you must apply for your CPP retirement pension when you decide you would like it to begin. You will not automatically be enrolled when you turn 65. If you have not applied for your CPP retirement pension by the time you reach age 70, you will be automatically enrolled. Individuals who do not wish to receive benefits have one year to opt out.

Income from CPP benefits is taxable and must be declared on your annual tax return. Learn more.

Service Canada

Canada Pension Plan Disability Benefits

If you are a CPP contributor under the age of 65 and cannot work because of a disability, you may be eligible for monthly benefits provided by the Canada Pension Plan Disability Benefits program. Learn more.

Canada Pension Plan Survivor’s Pension and Death Benefits

The CPP survivor pension is a monthly payment paid to the legal spouse or common-law partner of the deceased contributor. As the survivor, you are responsible for applying for your monthly pension. If you are incapable of applying, you may have a representative (such as a trustee) apply for you.

The death benefit is a one-time payment, payable to the estate or other eligible individuals, on behalf of a deceased CPP contributor. The children’s benefit is a monthly benefit for dependent children of a deceased contributor. Learn more.

CPP Pension sharing

Spouses or common-law partners who are living together, who are both at least 60 years old can share their CPP retirement benefits. This may reduce the amount of personal income tax that older couples pay. Learn more.

Canada Pension and benefits for those who have lived or are living outside Canada

If you have lived or worked in Canada and in another country, or you are the survivor of someone who has lived or worked in Canada and in another country, you may be eligible for pensions and benefits from Canada and/or from the other country because of a social security agreement. A social security agreement is an international agreement between Canada and another country that is designed to coordinate the pension programs of the two countries for people who have lived or worked in both countries.

International Social Security Agreements

Employment Insurance (EI) benefits

If you wish to continue working after age 65 you may be eligible for the same EI benefits as other workers in Canada. The receipt of pension income does not prevent you from receiving EI benefits but you must meet the qualifying and entitlement conditions.  Learn more.

Service Canada

Guaranteed Annual Income System (GAINS)

GAINS is a provincial program that ensures a guaranteed minimum income for qualifying Ontario senior citizens. You may be eligible if you are an Ontario resident, 65 years of age or older who is receiving OAS and GIS benefits, and has a total income below the level guaranteed by the province. Learn more.

Ministry of Finance

Financial planning

Everyone should have a financial plan. It’s never too late to get started. A good plan will include your current and future living expenses, sources of income, assets, tax planning, insurance needs and investments. You can find free guides online to help you get started or you can contact a certified financial planner. Elder planning counsellors specialize in working with people 50 years of age and older.

Registered Retirement Savings Plan (RRSP) and Registered Retirement Income Fund (RRIF)

Many people choose to privately save for retirement by putting money into RRSPs. RRSP contributions are tax deductible and interest you earn in the plan is tax-free. Payments made out of an RRSP, however, are taxable. By law, you cannot hold an RRSP beyond the last day of the year in which you turn 71. A RRIF is a fund that provides income during your retirement. As with an RRSP, a RRIF is an arrangement between you and a carrier, such as an insurance company, a trust company or a bank.

Tax-Free Savings Account (TFSA)

This unique bank account allows you to set money aside tax-free throughout your lifetime. Each calendar year, you can contribute up to the TFSA dollar limit for the year, plus any unused TFSA contribution room from the previous year. Your federal income-tested benefits and credits such as OAS, GIS or EI benefits will not be reduced as a result of the income you earn in your TFSA or the amount you withdraw from your TFSA . Learn more or contact your financial institution.

Lifelong Learning Plan

This plan allows you to take up to $10,000 in a calendar year from your RRSPs to pay for training or education for you or your spouse/common-law partner. When you withdraw funds for this purpose, you have up to 10 years to repay the amount back into your RRSP. Students must have completed an educational program before the end of the year in which they turn 71. Learn more.

Other types of investments

Understanding different types of investment options will help you to meet your goals in retirement. GetSmarterAboutMoney.ca is a website founded by the Ontario Securities Commission (OSC) that provides unbiased and independent financial tools to help you make better financial decisions. The website is run by OSC’s Investor Office and is a great resource to learn more about GICs, mutual funds, as well as more complex investments.

Financial assistance

Ontario Works

If you qualify, Ontario Works provides money to help cover the costs of basic needs, such as food and rent. How much you receive depends on your family size, income, assets and housing costs. Your local Employment and Social Services office can provide more information. Learn more.

Home and Vehicle Modification Program

Run by the Ontario March of Dimes, this program provides funding for basic home and/or vehicle modifications so that people with mobility restrictions can continue to live safely in their homes and participate in their communities. If you’re eligible you can apply for:

  • up to $15,000 (lifetime maximum) for home modifications
  • up to $15,000 every ten years for vehicle modifications

Learn more about the Home and Vehicle Modification Program.

The Ontario Seniors’ Home Safety Tax credit can also help seniors with mobility-related disabilities or impairments to live safely in their homes.

Medical Expense Tax Credit

The Medical Expense Tax Credit is a non-refundable federal tax credit that you can use to reduce the tax that you paid or may have to pay. If you paid for healthcare expenses, you may be able to claim them as eligible medical expenses on your income tax and benefit return.

Eligible expenses include a wide range of products, procedures and services, such as:

  • medical supplies
  • dental care
  • travel expenses
  • construction and renovation (for example, the purchase and installation of ramps, widening halls and doorways, and lowering of kitchen or bathroom cabinets)

For more information about qualifying expenses under this credit, see the CRA’s Income Tax Folio S1-F1-C1, Medical Expense Tax Credit.

The refundable Ontario Seniors Care at Home Tax Credit can be claimed in addition to the Medical Expense Tax Credit.

For Veterans

Disability pensions and awards

Veterans Affairs Canada offers a wide range of services and benefits to eligible veterans and others. Disability pensions and awards are available for conditions related to service in the Merchant Navy, Canadian Forces, Royal Canadian Mounted Police or to those serving in support of the Canadian Forces in wartime or in Special Duty/Operational Areas.

Veterans Affairs Canada

Bureau of Pensions Advocates

This nationwide organization of lawyers within Veterans Affairs Canada provides free legal help for veterans who are not satisfied with decisions about their claims for disability benefits. Learn more.

War Veterans Allowance

This allowance is available to eligible low-income veterans of the Second World War or Korean War. Surviving spouses, common-law partners and orphans may qualify for this allowance if the deceased veteran or civilian had the required war service. Learn more.

Veterans Affairs Canada

Soldiers’ Aid Commission of Ontario

The Soldiers’ Aid Commission provides financial assistance to Ontario’s eligible veterans and their families in financial need. The commission supplements support offered by the Royal Canadian Legion and Veterans Affairs Canada. One-time assistance is provided every 12 months for essential expenses. Funds can assist with the purchase of health- related items (hearing aids, dentures, eyeglasses, etc.), housing-related items, modifications or repairs that support mobility, health and safety, specialized equipment, and assistive devices to support accessibility, and more. Learn more.

Benevolent Funds

Benevolent Funds assist veterans, ex-service personnel and their dependants. The purpose of these funds is to provide emergency assistance, which is not otherwise available. Applications can be made through a Veterans Affairs Canada counsellor or your Royal Canadian Legion Provincial Service Officer. Requests for assistance usually relate to basic needs (food, shelter and medical care) on a one-time only basis. Learn more.

Royal Canadian Legion - Ontario Command

Veterans Affairs Canada