Personal Support Workers Tax Credit

As previously announced, the Budget introduces a new refundable tax credit for eligible personal support workers, being health care professionals who provide care to those requiring assistance with daily activities due to illness, disability, or age. This temporary tax credit will be available for five years, and equal to five percent of eligible earnings, to a maximum of $1,100 per year.

A number of conditions would need to be met to be considered an eligible personal support worker. Eligible earnings would generally be those earned performing duties for hospitals, nursing care facilities, residential care facilities, and other similar regulated health care establishments. Employers will need certify their employees’ eligible earnings in prescribed form and manner.

This tax credit would apply to the 2026 to 2030 taxation years and will be available in provinces and territories not covered by a bilateral agreement with the federal government to increase wages for personal support workers. Amounts earned in British Columbia, Newfoundland and Labrador, and the Northwest Territories would not be eligible.