Congrats on the Wedding — Now Let’s Talk About Your Taxes
Getting married is a big deal. And while no one wants to spend their honeymoon thinking about the CRA, the truth is: your tax situation just changed in some pretty significant ways.
The good news? Most of the changes work in your favour. Being married (or common-law) opens up a handful of tax credits and strategies that weren’t available to you as a single filer. Here’s exactly what changed and how to take advantage of it.
First: Are You “Married” or “Common-Law” for Tax Purposes?
The CRA treats both the same way. You’re considered common-law for tax purposes once you’ve lived with your partner for 12 consecutive months — regardless of whether you’re officially married. If you share a child together (biological or adopted), the 12-month rule doesn’t apply; you’re immediately considered common-law.
So even if you haven’t had a wedding, you may already be filing as a couple without realizing it.
Important: You still file your own separate tax returns in Canada. There’s no joint return like in the US. But your spouse’s income information goes on your return, and several credits flow between you.
The Big 6: Tax Benefits You Get as a Married Couple
1. Spousal Amount (Line 30300) — Up to ~$2,268 Federal Credit
This is the most direct perk. If your spouse or common-law partner earns little or no income, you can claim the spousal amount — a non-refundable tax credit based on the Basic Personal Amount (BPA).
For 2025 (the tax year you’re filing in spring 2026), the maximum spousal amount is approximately $16,129, reduced dollar-for-dollar by your spouse’s net income.
Example:
- Spouse earns $0 → you can claim the full ~$16,129 spousal amount
- Spouse earns $8,000 → you can claim ~$8,129
- Spouse earns $16,129 or more → no claim available
At the 14% federal rate, a full spousal amount claim saves you roughly $2,258 in federal tax. Add provincial credits and the savings are higher.
2. Transfer Unused Credits — Schedule 2
If your spouse doesn’t use all of their non-refundable tax credits, they can transfer the unused portion to you. Transferable credits include:
- Tuition amount — if your spouse is a student who paid tuition, unused credits come to you
- Age amount — for spouses over 65 with lower income
- Pension income amount — up to $2,000 of eligible pension income
- Disability amount — if your spouse qualifies
- Canada Caregiver Amount — for infirm dependents
This is filed on Schedule 2 of your tax return. It’s easy to miss if you’re filing for the first time as a couple.
3. Spousal RRSP Contributions — Income Splitting for the Future
You can contribute to your spouse’s RRSP and deduct it from your income. This is called a Spousal RRSP, and it’s one of the smartest long-term tax moves a couple can make.
Why it works: If you earn significantly more than your spouse, your marginal tax rate is higher. By putting money into their RRSP now, when they withdraw it in retirement (presumably at a lower income and lower tax rate), the family pays less tax overall.
Watch the attribution rule: If your spouse withdraws from the spousal RRSP within 3 years of your contribution, the withdrawal is taxed in your hands, not theirs. Plan accordingly.
4. Pool Medical Expenses — Claim on One Return
You can combine both spouses’ eligible medical expenses and claim them on one return. The threshold for claiming medical expenses is 3% of net income (or $2,635, whichever is less).
Here’s why you should claim on the lower income spouse’s return: 3% of a lower income is a smaller threshold to clear, meaning more of your combined expenses become claimable.
Example: Combined medical bills of $4,000. If you claim on the higher earner ($90,000 income), the threshold is $2,700 — you claim $1,300. If you claim on the lower earner ($30,000 income), the threshold is $900 — you claim $3,100. Big difference.
5. Combine Charitable Donations — Claim Together
Charitable donations over $200 are credited at a higher rate (29% federal). By combining both spouses’ donations on one return, you reach that $200 threshold faster and get more of your donations credited at the higher rate.
It doesn’t matter who made the donation — either spouse can claim all of it on their return.
6. Pension Income Splitting (Age 65+)
Not relevant in your first year of marriage if you’re young — but worth knowing for later. Once you’re 65+, you can split up to 50% of eligible pension income with your spouse. This is one of the most powerful retirement tax strategies in Canada.
What Changes (That You Might Not Expect)
GST/HST Credit — May Go Down
The GST credit is based on combined family net income. If your partner earns income, your combined income is higher, which may reduce or eliminate the credit. Only one person in the couple receives the payment (usually the lower earner or the person who files first).
Canada Child Benefit (CCB) — Based on Family Income
If you have children (or plan to), the CCB is calculated on combined family net income. The higher your combined income, the lower the benefit. Update your status with the CRA quickly after getting married so the right amount is calculated.
The One Thing You Must Do Right Away
Update your marital status with the CRA. You can do this through:
- CRA My Account online (fastest)
- Calling CRA at 1-800-387-1193
- Filing Form RC65 (Marital Status Change)
You’re required to notify the CRA by the end of the month following the month your status changed. Miss it and your benefit payments (GST credit, CCB, etc.) may be miscalculated.
Quick Reference: Married vs. Single at Tax Time
| Benefit | Single | Married / Common-Law |
|---|---|---|
| Spousal amount credit | ❌ | ✅ Up to ~$2,258 federal |
| Transfer unused credits | ❌ | ✅ Schedule 2 |
| Spousal RRSP | ❌ | ✅ Deduct from your income |
| Pool medical expenses | Individual only | ✅ Combine on one return |
| Combine donations | Individual only | ✅ Claim together |
| Pension income splitting | ❌ | ✅ Up to 50% at 65+ |
| GST credit | Individual amount | ⚠️ May decrease (family income) |
The Bottom Line
Filing taxes as a married or common-law couple is mostly good news — especially if there’s an income gap between you two. The spousal amount alone can be worth over $2,000 in federal tax savings, and that’s before the other credits kick in.
Just remember: you still file separately, update your status with the CRA, and decide strategically which spouse claims shared expenses like medical and donations.
Not sure how to handle your first joint tax season? Book a consultation with us — we’ll make sure you’re not leaving money on the table.