What’s new for Canadian taxes in 2021

Every year, there are changes to Canadian taxes that might impact your return. The following list contains some major federal and provincial changes announced in 2021.

Use these links to jump to each section for more information:

Federal tax changes

Alberta tax changes

Ontario tax changes

Québec tax changes


Repaying COVID-19 benefits

If you received federal COVID-19 benefits (such as CERB) in 2020 and repaid some in 2021, you can claim the amount you repaid on your 2021 return. You can find the repayment amounts in box 201 of your T4A slip or box 30 of your T4E slip along with your other Employment Insurance (EI) benefits.

Changes to the Canada workers benefit

The Canada workers benefit (CWB) rates and eligibility requirements have changed. A new secondary earner exemption has also been introduced, meaning if your spouse or common-law partner earns less income than you, you might be able to claim up to an extra $14,000 for this benefit.

New definition of zero-emission vehicles

If you bought a zero-emission vehicle (ZEV) after March 1, 2020, you can’t claim an incentive for it unless:

  • You previously claimed a capital cost allowance (CCA) or terminal loss on that vehicle, and

  • The vehicle wasn’t previously owned by a person, partnership, or business that you deal with at arm's length.

Reporting postdoctoral fellowship income

Beginning this year, your postdoctoral fellowship income will count towards your RRSP contribution room and might help with deductions for your RRSP, pooled registered pension plan (PRPP), and specified pension plan (SPP) contributions.

More travel deductions for Northern residents

If you lived in the northern regions of Canada, you can now claim a deduction for personal trips even if your employer doesn’t reimburse you for your travel costs.

Decreased Alberta dividend tax credit

The dividend tax credit rate for eligible dividends decreased from 10% to 8.12%.

New Ontario seniors' home safety tax credit

If you paid for renovations to improve the safety and accessibility of your home for a senior who lives there, you might be able to claim the new Ontario seniors’ home safety tax credit.

Increased Ontario childcare access and relief from expenses tax credit (CARE)

You can now claim 20% more for the Ontario childcare access and relief from expenses (CARE).

Discontinued Ontario apprenticeship training tax credit

This tax credit has been discontinued for 2021 and future tax years.

New Ontario jobs training tax credit

If you got training to shift your career, sharpen your skills, or to re-train for your current job, you can claim 50% of your eligible training expenses.

New tax credit for childcare expenses

For 2020 and 2021 tax returns only, if you received employment insurance (EI) benefits or COVID-19 emergency benefits, you might be eligible for this refundable tax credit to help pay for your childcare expenses.

New deduction for residents of designated remote areas

If you lived in the northern regions of Québec, you can now claim a deduction for personal trips even if your employer doesn’t reimburse you for your travel costs. You can claim up to $1,200 if you lived in a northern area and up to $600 if you lived in an intermediate zone.

Lower tax credit for the acquisition of Capital régional et coopératif Desjardins shares

Two new conversion periods have been added for exchanges:

  • March 1, 2021 to February 28, 2022

  • March 1, 2022 to February 28, 2023

More eligibility for the disability supports deduction

For 2020 and 2021 tax returns only, more Québec residents might be eligible to claim a deduction for the goods and services to you paid for to support you during the year.

Higher contributions and premiums for the Québec Prescription Drug Insurance Plan

The maximum premium you’ll be responsible for is now $686 (per spouse, if you’re a couple).

Increased tax credit for an on-the-job-training period

If you paid for a training course after March 25, 2021 and participate in it before May 1, 2022, you might able to claim more for your eligible expenses.

Discontinued tax credit for volunteer respite services and tax credit for respite of caregivers

These tax credits have been discontinued for 2021 and future tax years.

Decreased dividend tax credit

The dividend tax credit rate for the amount of ordinary dividends has decreased from 5.4855% to 4.6115%.

Changes to eligibility for tax credit for taxi drivers

Taxi owners are no longer eligible for this credit, but taxi drivers can continue to claim it.