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Federal Tax Exemption on Retirement Income for Seniors

Home Federal Tax Exemption on Retirement Income for Seniors

Policy Statement : The federal government will exempt up to $60,000 annually of retirement income from taxation for all seniors aged 65 and older.

This policy ensures financial security for retired Canadians, reduces the tax burden on individuals who have contributed to the economy for decades, and allows them to afford their basic needs without financial strain.

  1. PurposeTo provide financial relief for retired seniors by exempting a portion of their retirement income from federal taxation, ensuring they can maintain a stable and dignified quality of life. This policy acknowledges the contributions seniors have made throughout their working years and addresses the financial difficulties many face in retirement.
  2. ScopeThis policy applies to all Canadian citizens and permanent residents aged 65 and older who receive retirement income from pensions, Registered Retirement Income Funds (RRIFs), annuities, and other retirement savings plans.
  3. Definitions
      Retirement Income: Any pension, RRIF withdrawal, annuities, or other government/private retirement funds received by an individual.
    1. Exemption Limit: Up to $60,000 per year of retirement income shall be exempt from federal income tax.