8.3.1 Deductions from income

You can deduct certain expenses and other adjustments from your total income to get your taxable income. These deductions reduce the amount of income you pay tax on, so they reduce your overall income tax. The more deductions that apply to you, the less your taxable income becomes. Deductions from taxable income are listed on lines 24400 to 25600 of the T1 form below.

Review the deductions listed and make a note of any that you think might apply to you.

Step 3 - Net income and Step 4 - Taxable income of T1 General - Income Tax and Benefit Return for Non-Residents and Deemed Residents of Canada
Text version: Step 4 - Taxable income

Step 4 - Taxable income

line 24400 - Canadian Forces personnel and police deductions 

line 24900 - Security options deductions

line 25000 - Other payments deduction 

line 25100 - Limited partnership losses of other years

line 25200 - Non-capital losses of other years

line 25300 - Net capital losses of other years

line 25400 - Capital gains deductions

line 25500 - Northern residents deductions 

line 25600 - Additional deductions 


You can deduct income that you deposit into Registered Pension Plans (RPPs) and Registered Retirement Savings Plans (RRSPs), up to a limit that is based on the income you have earned in previous years, the amount previously claimed and an annual ceiling. For details, see the section titled Registered Retirement Savings Plans.

Other key deductions include:

Normally, you must have receipts for actual expenses or similar documents to claim these deductions, but you don’t have to send them in with your tax return.

These deductions are available only when you meet specific conditions, so check the tax guide to be sure that they apply. For more information, go to Canada Revenue Agency's General income tax and benefit package or get a copy of the guide at your local post office.


Tax deductions reduce your total income to your Taxable Income, Line 26000 on the T1 tax return. Taxable Income is used to calculate how much you will receive for benefits that are determined by your income, such as the goods and services tax/harmonized sales tax (GST/HST) refund and the Guaranteed Income Supplement. If your Taxable Income is high enough, some benefits are reduced or eliminated entirely—a limit called a clawback.

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