Taxes when you retire or turn 65 years old

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Types of income you may receive when you retire or turn 65 years old

Here are the most common types of income you may start to receive and have to include on your tax return. This list is not exhaustive.

Most common types of income
Type of income How to include it on your tax return Details
Old age security (OAS) pension Line 11300 – Old age security (OAS) pension The OAS pension is a monthly payment available to most Canadians age 65 or older.
Canada Pension Plan (CPP) or Québec Pension Plan (QPP) benefits Line 11400 – CPP or QPP benefits CPP or QPP provides you or your family with partial replacement of earnings when you retire.
Retiring allowance

Line 13000 – Other Income: Retiring allowance

Retiring allowance is an amount you may receive, for example, on or after retirement from office or employment in recognition of long service.
Other pensions and superannuation Line 11500 – Other pensions and superannuation You may get a pension from a Canadian or foreign pension plan.
Registered retirement savings plan (RRSP) income Line 12900 – Registered retirement savings plan (RRSP) income You may have to include the payments or transfers from a plan on your tax return.
Registered retirement income fund (RRIF) 

Line 11500 – Other pensions and superannuation: Payments from annuities, pooled registered pension plan (PRPP), and registered retirement income fund (RRIF), including life income funds

Line 13000 – Other income: Other kinds of income

You may have to include the payments or transfers from a plan on your tax return.
Annuity payments Line 11500 – Other pensions and superannuation: Payments from annuities, pooled registered pension plan (PRPP), and registered retirement income fund (RRIF), including life income funds An annuity is a plan that makes payments to you on a regular basis. It might be a general annuity, a payment from a RRIF, or a variable pension payment.
Pooled registered pension plan (PRPP) payments

Line 11500 – Other pensions and superannuation: Payments from annuities, pooled registered pension plan (PRPP), and registered retirement income fund (RRIF), including life income fund

Line 13000 – Other income: Other kinds of income

How to include this payment on your tax return depends on your situation. For example, PRPP payments may only be considered pension income if you are 65 or over.
Retroactive lump-sum payments Line 13000 – Other income: Lump-sum payments
You may receive lump sum payments from another source, such as benefits from a superannuation or pension plan. You can ask the Canada Revenue Agency (CRA) to tax the parts for previous years as if you received them in those years.
Other kinds of income Line 13000 – Other income: Other kinds of income This can include payments from a trust or amounts from a retirement compensation arrangement.

How to pay income tax or other additional tax

There are several ways to pay your income tax or other additional tax:

How to reduce the tax you owe

You may be able to reduce your tax payable by taking advantage of a number of deductions or tax credits that may be available to you:

How your taxes are affected when living abroad

Find out the different tax obligations regarding retirees and seniors who live outside of Canada.

Forms and publications

Related links

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