15 Sources of Income That Canadians DON’T Typically Have to Pay Tax On

CALGARY, Alberta, Jan. 15, 2026 (GLOBE NEWSWIRE) -- With tax filing season quicky approaching, now is the time to dig out all those receipts and get your head around what’s new and different this tax season. But what many Canadians don’t know is that there are several income sources and money streams that you don’t pay tax on, or that don’t count as part of your taxable income. In fact, a 2025 study conducted by H&R Block Canada revealed that nearly two-thirds of Canadians (63%) don’t feel confident in navigating the constantly evolving tax credits and benefits to maximize their refund more generally and 50% had no clue whether to expect a tax return or not.

“There’s a huge portion of Canadians we see each year that have no idea they don’t need to pay tax on certain income streams or credits and benefits they received. This can amount to a significant sum of money that stays in your pocket,” said Yannick Lemay, Tax Expert at H&R Block Canada. “These exemptions can add up to significant savings, from federal and provincial government benefits and credits, as well as medical, health and well-being, and work-related benefits. We advise all Canadians to act now to make sure they fully understand any tax exemptions they qualify for, and to navigate the hundreds of tax benefits and credits available to avoid leaving money on the table this tax season.”

H&R Block highlights 15 sources of income that Canadians typically don’t need to pay tax on:

“It’s important to note that even when income isn’t taxed, it doesn’t mean it’s invisible income,” said Lemay. “Some non-taxable amounts still need to be reported even if no tax is paid on it, as it can affect eligibility for certain credits and benefits. Ultimately, reporting non-taxable income helps ensure you get the right benefits, avoid any surprises, and helps you stay compliant with CRA requirements without increasing your tax bill.”

About the survey: These findings are from a survey conducted by H&R Block from February 12-13, 2025, among a representative sample of 1,790 Canadians. The survey was conducted in English and French. For comparison purposes only, a probability sample of this size would carry a margin of error of +/-2.53 percentage points, 19 times out of 20.

About H&R Block Canada: A trusted partner of Canadians for over 60 years, H&R Block Canada is Canada's tax leader. Serving almost 1,000 locations across Canada, H&R Block's team of Tax Experts use the latest in technological advances combined with real-world expertise to help people file taxes in office, file remotely, or use do-it-yourself Tax Software. H&R Block Canada can support in the preparation of personal, small business, corporate, U.S., rental, and estate taxes. H&R Block's comprehensive education program, Tax Academy, ensures our Tax Experts continually update their skills. Learn more at  www.hrblock.ca or 1-800-HRBLOCK.

For more information, contact: H&R Block c/o Ketchum: hrblockmediainquiries@ketchum.com