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Tax credits

The Federal Government introduced a non-refundable tax credit for the cost of buying a monthly (or longer duration) public transit pass for commuting on buses, streetcars, subways, commuter trains and local ferries. The credit applies to all passes purchased for travel after July 1, 2006 (CRA, 2006).

A non-refundable tax credit means that the amount claimed is multiplied by the lowest personal income tax rate for the year (15.25% in 2006) and is then deducted from tax otherwise payable. The full amount of any combination of transit passes for different transit systems can be claimed. Weekly passes are not eligible for the federal tax credit. An individual can make a claim on behalf of a spouse or common-law partner, and the individual's children under the age of 19, if they have not already been claimed by them.

In cases where a transit pass displays all of the following information, the pass itself will be sufficient to support a claim for the tax credit:

  • an indication that it is a monthly (or longer duration) pass
  • the date or period for which the pass is valid
  • the name of the transit authority or organization issuing the pass
  • the amount paid for the pass
  • the identity of the rider (CRA, 2006)

If the pass does not have all of the above information you must submit receipts, cancelled cheques or credit card statements, along with the pass(es), to support the claim. Documentation will not be submitted when the tax return is filed but must be kept on file.

Commuters who use VIP passes (or who are signed up for TTC Monthly Discount Passes) will receive a yearly statement either from their employer, in the case of VIP passes (or from the TTC, in the case of MDP), showing how much they paid for their passes. This statement can be used to support a claim for the tax credit.

GTHA Transit Agencies - Documentation required to claim the Federal Tax Credit

 

GO Transit

Expired monthly pass will be the receipt for income tax purposes. Special receipts will not be issued and lost passes will not be replaced.

York Region Transit

Expired monthly pass must be retained for each month as well as a monthly pass rate card (as proof of fare structure) available through the ticket agent, YRT Customer Service or on the YRT web site. YRT/Viva does not replace lost monthly passes.

Durham Region Transit

Expired monthly pass will be the receipt for income tax purposes. The back of the pass must be signed by the pass holder.

Hamilton Street Railway Company

Expired monthly pass and a receipt as issued by the HSR need to be kept to support the claim. The receipt will be issued upon request from the HSR Ticket Office or from any of the authorized HSR vendors located throughout the City. The HSR Adult Pass and HSR Elementary/Secondary Month Pass qualify for the tax credit.

Burlington Transit

BT operates on an electronic fare collection system and so does not issue monthly paper passes or on-the-spot receipts for passes purchased on buses. On-the-spot receipts can be obtained if the monthly pass is purchased at the Downtown Transit Terminal located at 430 John Street. Riders must retain their Card Registration Number (CRN).

Alternatively, a web site application form can be downloaded, completed and submitted to BT in order to receive a ComboCard usage statement that can be used to claim the transit tax credit. Those without internet access may call Bus Line (905-639-0550) and an application will be mailed to them. Transit users are also advised to retain cancelled cheques and credit card statements to support their claims.

Milton Transit

Introduced a monthly pass in July. Expired monthly pass and receipt issued at time of purchase must be kept to support the claim.

Brampton Transit

Expired monthly pass serves as the receipt.

Oakville Transit

Expired monthly transit passes and a receipt as issued by Authorized Ticket Agents must be kept to support the claim.

Mississauga Transit

Expired monthly pass serves as the receipt. 

Toronto Transit Commission

You can claim the Federal Transit Tax Credit for these passes: Monthly Metropass (Adult, Post-Secondary Student and Senior/Student);Weekly Pass (Adult and Senior/Student);GTA Pass. Details here.

 

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