Personal support workers do some of the hardest jobs in health care. Starting with the 2026 tax year, eligible PSWs can claim a new refundable tax credit worth up to $1,100 a year. It was announced in Budget 2025 and became law when Bill C-15 received Royal Assent on March 26, 2026.
The short version
- Value: 5% of eligible earnings, up to a maximum credit of $1,100 a year.
- Years: the 2026 to 2030 tax years. It's temporary.
- Refundable: you get it even if you owe no tax. It's paid out as part of your refund.
- Who: eligible personal support workers employed by eligible health care establishments.
- Not available for work performed in British Columbia, Newfoundland and Labrador, or the Northwest Territories, which have separate wage agreements with the federal government.
- How: your employer certifies your eligible earnings, and you claim the credit on your tax return.
How much could you get?
The credit is 5% of your eligible earnings, capped at $1,100. You reach the maximum at $22,000 of eligible earnings.
- $12,000 of eligible earnings: a $600 credit
- $18,000 of eligible earnings: a $900 credit
- $22,000 or more of eligible earnings: the maximum $1,100 credit
What counts as eligible earnings
According to Budget 2025, eligible earnings include taxable employment income, such as wages, salaries and taxable employment benefits, earned as an eligible personal support worker performing duties for an eligible health care establishment. Similar tax-exempt income and benefits earned on a reserve also count.
Income from other jobs doesn't count. If you work as a PSW for part of the year and in another role the rest of the year, only your PSW earnings go toward the credit.
Who qualifies
The law defines both an eligible personal support worker and an eligible health care establishment. In plain terms, the credit is aimed at workers whose job is providing personal support and care to patients or residents, employed by qualifying health care establishments. The exact definitions matter, so confirm with your employer and the CRA's guidance before you claim.
Two practical requirements:
- Your employer must certify your eligible earnings in the form the CRA prescribes. If you have more than one PSW job, make sure each employer certifies the earnings from that job.
- You must file a tax return. The credit is only paid when your return is assessed.
When you'll see the money
The credit starts with the 2026 tax year, so the first claims happen when you file your 2026 return in spring 2027. If you're getting a refund, the credit is added to it. If you owe tax, it reduces what you owe, and any extra comes back to you.
Tips for PSWs in Ontario
- Keep your pay stubs and T4 slips, and watch for your employer's certification.
- File on time. For most people, the deadline for 2026 returns is April 30, 2027.
- Don't miss your other benefits. Filing also keeps payments like the Canada Groceries and Essentials Benefit and the Ontario Trillium Benefit coming.
Sources
- Budget 2025: Tax measures, supplementary information (Personal Support Workers Tax Credit), Department of Finance Canada
- Bill C-15, Budget 2025 Implementation Act, No. 1, Parliament of Canada
- Important dates for individuals, Canada Revenue Agency
Want help claiming it? Our personal tax service makes sure new credits like this one don't get missed. We also work with healthcare workers.