How Personal Support Workers Can Get the New $1,100 Tax Credit

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Umbrella

1. Who Qualifies

You’re eligible if:

  • You work as a Personal Support Worker (PSW) in a hospital, nursing home, long-term care home, retirement home, or home-care agency (these are “eligible health care establishments”).
  • You provide one-on-one care that supports a person’s health, safety, comfort, and independence.
  • Your main job duties include helping with daily living activities such as feeding, bathing, dressing, or mobility.

2. How Much You Can Get

You’ll receive the lesser of:

  • $1,100, or
  • 5% of your total eligible PSW earnings during the year.

That means:

  • If you earn $22,000 or more, you’ll get the full $1,100.
  • If you earn less, you’ll still receive 5% of what you made.

3. When It Starts

  •  The credit applies to income earned in 2026 and later tax years (claims open in the 2027 tax filing season).

4. What You Need From Your Employer

  •  Your employer must certify your earnings on a government form confirming that your work meets the PSW definition.
  •  Keep this certification for your tax records — it will be needed when filing your return.

5. How to Claim It

When you file your taxes:

  1. Fill out your normal income tax return.
  2. Add the “Personal Support Worker Tax Credit” section (this will be listed on future CRA forms).
  3. Enter your eligible PSW earnings and the employer certification details.
  4. The CRA will automatically apply the credit – you’ll get it as a refund or reduction in tax owed.

If you don’t normally file taxes, the CRA may automatically file for you under the new automated return system that starts in 2025 Changes to Tax code.

6. Example

If you worked as a PSW and earned $30,000 in 2026:

  • 5% of $30,000 = $1,500
  • You’ll get $1,100 (the maximum).

If you earned $15,000, you’ll get $750 (5% of $15,000).

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