# Personal support workers tax credit (PSWTC): amount, who qualifies and how it will be claimed

Source: https://canadataxdesk.com/credits-deductions/personal-support-workers-tax-credit
Publisher: Canada Tax Desk (canadataxdesk.com), independent editorial site
Topic: Credits and Deductions
Last updated: 2026-10-22

> The personal support workers tax credit (PSWTC) is a refundable federal credit equal to 5% of an eligible personal support worker's eligible earnings, up to $1,100 a year, for the 2026 to 2030 tax years. It became law on March 26, 2026. Work performed in British Columbia, Newfoundland and Labrador and the Northwest Territories does not count.

## Key facts

- Credit amount: Lesser of $1,100 and 5% of eligible remuneration
- Earnings needed for the maximum: $22,000
- Years covered: 2026 to 2030 tax years
- Type: Refundable: paid even if you owe no tax
- Excluded work locations: British Columbia, Newfoundland and Labrador, Northwest Territories
- First claim: 2026 return, filed in spring 2027

## What is the personal support workers tax credit?

The personal support workers tax credit (PSWTC) is a new refundable credit for people employed as personal support workers (PSWs) by hospitals, care homes, home care agencies and similar regulated health care establishments. It pays 5% of eligible earnings, to a maximum of $1,100 per year, for each tax year from 2026 to 2030 ([CRA, Budget 2025 select measures](https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/federal-government-budgets/budget-2025-cra-information-select-measures.html)).

Refundable means the credit is paid to you even when your tax is already zero. A part-time PSW whose income is below the taxable level still gets the full calculated amount, added to any refund when the return is assessed. It is a credit, not a deduction: it does not lower your taxable income, and is instead added to your refund or applied against any balance owing.

The credit is one of the changes that first appear on 2026 returns; see [what's new for the tax season](https://canadataxdesk.com/filing/tax-season-whats-new) for the others, and our [credits and deductions guide](https://canadataxdesk.com/credits-deductions) for the full list of claims.

## Is the PSW tax credit law yet?

Yes. Budget 2025 proposed the PSWTC, and Parliament enacted it in the Budget 2025 Implementation Act, No. 1 (Bill C-15), which received Royal Assent on March 26, 2026 as Statutes of Canada 2026, chapter 3 ([Parliament of Canada, LEGISinfo](https://www.parl.ca/legisinfo/en/bill/45-1/c-15)). The Library of Parliament's summary of the bill says the credit is added to the Income Tax Act as new section 122.93.

Some CRA pages written before the vote, including the Budget 2025 measures page last updated in April 2026, still describe the credit as proposed. The law is in force; what has not been published yet is the CRA's filing detail, such as the return line number and the T4 code.

## How much is the PSW tax credit?

The PSWTC equals 5% of your yearly eligible remuneration or $1,100, whichever is less. You reach the $1,100 maximum at $22,000 of eligible earnings; earning more does not raise the credit.

| Eligible earnings in the year | 5% of earnings | Credit |
| --- | --- | --- |
| $8,000 | $400 | $400 |
| $18,000 | $900 | $900 |
| $22,000 | $1,100 | $1,100 |
| $38,000 | $1,900 | $1,100 (capped) |
| $55,000 | $2,750 | $1,100 (capped) |

PSWTC by eligible earnings (5% of eligible remuneration, capped at $1,100)

Over the five years from 2026 to 2030, a PSW who earns at least $22,000 of eligible pay each year could receive up to $5,500 in total. The $1,100 cap is set in the new section 122.93(2) of the Income Tax Act.

## Who counts as an eligible personal support worker?

You are an eligible PSW when you are employed in the capacity of a personal support worker by an eligible health care establishment and your job fits the law's description. Job title alone does not decide it; the duties do.

- Your main duties include helping people with activities of daily living and with mobility.
- You ordinarily provide one-on-one care and essential support for another person's health, well-being, safety, autonomy and comfort.
- That care follows the direction of a regulated health care professional or a provincial or community health organization.

### What is an eligible health care establishment?

The Library of Parliament summary lists hospitals, nursing care facilities, residential care or community care facilities for the elderly, home health care establishments, and similar regulated health care establishments. The employer must certify your eligible earnings, so the credit is built around employees of these organizations.

> **Hired directly by a family:** The law's wording covers employment income from an eligible health care establishment. A PSW who is self-employed or paid directly by a family does not fit that wording on its face. The CRA has not yet published guidance on edge cases such as staffing agencies, so wait for its PSWTC page before counting on the credit in those situations.

## Which provinces and territories are excluded?

Earnings for duties performed in British Columbia, Newfoundland and Labrador and the Northwest Territories do not count as eligible remuneration. The CRA explains that these three jurisdictions signed bilateral agreements with the federal government that fund higher PSW wages over five years.

| Where the duties are performed | Counts toward the PSWTC? |
| --- | --- |
| Ontario, Quebec, Alberta, Manitoba, Saskatchewan | Yes |
| New Brunswick, Nova Scotia, Prince Edward Island | Yes |
| Yukon, Nunavut | Yes |
| British Columbia, Newfoundland and Labrador, Northwest Territories | No |

Where PSW work counts toward the credit

The test looks at where the work is done, not where you live. A PSW who lives in one province and works in a neighbouring one is judged by where the shifts take place. If a PSW earns $30,000 in a year and $10,000 of it is for shifts in British Columbia, only $20,000 is eligible, giving a credit of $1,000.

## How will you claim the credit on your 2026 return?

You claim the PSWTC on your own 2026 income tax return, filed in 2027. Your employer certifies your eligible earnings using a new "other information" code on your T4 slip, and the credit is calculated from that figure.

1. Check your 2026 T4 slip when it arrives, normally by the end of February 2027, for the new PSW code in the other information area. Our [T4 box guide](https://canadataxdesk.com/tax-slips/t4-slip-boxes) explains where other information codes appear.
2. If the code is missing and you believe you qualify, ask your employer's payroll office before you file. An amended T4 is the employer's job. If your employer refuses to certify your eligible earnings, the CRA says you can contact it to submit a complaint, which starts a review of whether an amended T4 slip is needed; unionized workers may also be able to get help from their union representative.
3. File your 2026 return by April 30, 2027. The PSWTC is refundable, so file even if you owe nothing.
4. Look for the credit on your notice of assessment. If it was left off, request a change after assessment.

> **Not yet published:** As of October 22, 2026, the CRA has not announced the T4 code number or the return line for the PSWTC. Both normally appear with the 2026 T4 guide for employers and the 2026 T1 tax package, which the CRA usually releases late in the year and in January.

## What to watch before you file

- Keep pay stubs showing which province each shift was in, if you work across a provincial or territorial border.
- If you have more than one PSW employer, each should certify its own earnings on its own T4. Eligible earnings from all of them are combined before the $1,100 cap applies.
- PSWs training for another health career may also have tuition to claim; see the [tuition tax credit](https://canadataxdesk.com/credits-deductions/tuition-tax-credit).
- The law includes separate rules for a worker who goes bankrupt or dies during the year, set out in the new sections 122.93(3) and (4).

Families paying for care at home claim different credits, such as attendant care under the [medical expense tax credit](https://canadataxdesk.com/credits-deductions/medical-expenses-tax-credit). The PSWTC belongs to the worker, not to the person receiving care.

## Common questions

### How much is the PSW tax credit per year?

It is 5% of eligible earnings, up to $1,100 a year. You receive the full $1,100 once your eligible PSW earnings reach $22,000 in the year.

### When will I get the personal support worker tax credit?

The first year is 2026, so you receive it when you file your 2026 return in 2027 and the CRA assesses it. It is part of your refund or reduces your balance owing; it is not a separate monthly payment.

### Do PSWs in British Columbia get the PSWTC?

No. Earnings for work performed in British Columbia, Newfoundland and Labrador and the Northwest Territories are excluded because those governments signed wage agreements with Ottawa for PSWs.

### Can PSWs in Ontario claim the PSW tax credit?

Yes. Ontario is not one of the excluded jurisdictions, so eligible earnings for PSW duties performed in Ontario count. An Ontario PSW employed by an eligible health care establishment who earns at least $22,000 of eligible pay in 2026 can receive the maximum $1,100 on the 2026 return.

### Is the PSW tax credit taxable?

The PSWTC is a refundable tax credit applied through your return, not income paid by your employer, so it is not added to your employment income. The CRA's forthcoming PSWTC guidance will confirm the reporting details.

### Do I have to apply separately for the PSWTC?

No separate application has been announced. The design relies on your employer certifying earnings on your T4 slip and you claiming the credit on your annual return.

## Sources

- [Budget 2025: CRA information on select measures](https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/federal-government-budgets/budget-2025-cra-information-select-measures.html)
- [LEGISinfo, Bill C-15 (45-1), Budget 2025 Implementation Act, No. 1](https://www.parl.ca/legisinfo/en/bill/45-1/c-15)
- [Library of Parliament, Legislative summary of Bill C-15](https://lop.parl.ca/staticfiles/PublicWebsite/Home/ResearchPublications/LegislativeSummaries/PDF/45-1/45-1-C15-E.pdf)