General information only — not financial advice for your situation.
This is a learning tool. Always check CRA My Account records and talk to a qualified professional for your own numbers.
Plain English
A tax credit that gets paid out to you even if you owe zero tax. It can actually put money in your pocket.
Technical definition
A refundable tax credit is paid out to the taxpayer even when total tax liability is zero, effectively functioning as a direct government transfer. Examples include the GST/HST credit and the Canada Workers Benefit. Unlike non-refundable credits, the full value is always received regardless of income tax owed.
Examples
- • You owe $0 in tax but qualify for a $300 GST/HST credit. CRA pays you the full $300.
- • A low-income worker with $500 in tax owing receives a $1,200 refundable credit — the remaining $700 is paid out as a refund.
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About this site
Every number on this site is sourced from CRA publications, the Income Tax Act, or provincial fiscal releases. We show the math, cite the sources, and never tell you what to do with your money.