While there are no explicit private school tax deductions or tax credits, there are a number of ways that parents at private schools can indirectly reduce their taxes.
Tax deductions and credits related to private school tuition
While private school tuition is not tax deductible, there are cases where tuition or related expenses may be used as a tax deduction.
Here are several examples:
- Parents at private schools offering both academic and religious education (e.g. Christian schools, Jewish schools) may be able to claim a tax credit for tuition, as a charitable contribution. While the amount you can claim varies from one province to another, this may be significant. Some schools are registered as charities or are associated with registered charitable organizations that offer tax breaks.
Private school can be a tax write-off when it is medical necessity for a child. If a school's facilities, equipment or personnel are required due to the student’s mental or physical needs, parents may be able to claim tuition fees as a medical expense tax credit.
- a portion of private school fees can be claimed as a child care expense under tax deductions, especially where these fees are above and beyond tuition costs. This tax deduction is based on the portion of the day where the child is supervised but is not receiving instruction.
Other tax breaks
Scholarships and bursaries offered by private schools are tax exempt.
How else is private school tax deductible in Canada?
For grandparents or anyone else making an outright contribution to a family's private school tuition, this "gift" can be excluded from the recipient's income. In some cases, gifts can be exempt from this deduction, so be careful of "attribution rules" which you can read more about under tax tactics to boost financial options.
Family tax benefits are plentiful in Canada. There are many of these with special applications for parents paying private school tuition. Read more about family tax benefits for parents of private school students.