Spousal credit for a stay-home parent in Canada in 2026
The spousal credit for a stay-home parent in Canada in 2026 is worth about $3,000 a year. Most Canadian families with one earner and one stay-home spouse don't know the number. They claim the credit because tax software prompts them. They don't think of it as part of the single-income vs dual-income math. It is.
The spousal credit is the cleanest piece of family-finance math in Canada. If your spouse earns less than the Basic Personal Amount of $16,452 in 2026, you get a federal tax credit worth $2,303. Plus another $500-$700 in provincial savings, depending on the province. The credit phases out dollar-for-dollar as the lower-earning spouse earns above $16,452. Earn $16,452 and the credit is zero.
This page walks the mechanics with the 2026-27 numbers, including the eligible-dependant equivalent for single parents.
TL;DR: The federal spousal credit in 2026 is worth $2,303 to the working spouse if the other spouse earns nothing. The provincial spousal credit adds $500-$700 depending on province. Combined: about $3,000/year. Phases out dollar-for-dollar as the lower-earning spouse's income rises from $0 to the Basic Personal Amount of $16,452. Single parents claim the eligible-dependant amount instead, worth the same $2,303 federal.
Quick answer: what the spousal credit is worth in 2026
For a working spouse whose partner stays home with no income:
- Federal spousal amount: $2,303 (14% × $16,452 Basic Personal Amount in 2026)
- Provincial spousal amount (Ontario): about $645 (5.05% × $12,747)
- Provincial spousal amount (Quebec): handled by Quebec's own credit structure
- Provincial spousal amount (BC): about $737 (5.06% × $14,560)
- Provincial spousal amount (Alberta): about $1,786 (8% × $22,323)
For most provinces, the combined federal + provincial spousal credit is $3,000-$3,500/year. Alberta is the outlier because its provincial BPA is significantly higher than other provinces. Quebec handles the credit differently because Quebec residents file two tax returns.
The credit is non-refundable. That means it reduces your tax bill but doesn't generate a refund beyond what you owe. For a Canadian working spouse with any meaningful income (anything above ~$25,000), the credit is fully used.
The federal spousal amount and the Basic Personal Amount
The federal spousal amount is mechanically tied to the Basic Personal Amount, which is $16,452 in 2026. The Basic Personal Amount is the income each Canadian taxpayer can earn before paying federal income tax. The spousal amount lets a working spouse claim their partner's unused BPA on their own return.
The mechanic:
spousal_amount_claim = max(0, BPA − spouse's net income)
spousal_credit = spousal_amount_claim × 14% (2026 lowest federal rate)So if the stay-home spouse earned $0, the claim is the full $16,452, and the credit is $16,452 × 14% = $2,303. If the stay-home spouse earned $5,000, the claim is $11,452, and the credit is $1,603. If the stay-home spouse earned $16,452 or more, the claim is $0 and the credit is $0.
The 14% rate dropped from 15% effective July 1, 2025. So the max federal spousal credit for 2024 was $2,468 (15% × $16,453, the prior year's BPA). For 2025 it was a blended $2,393. For 2026 it's the full $2,303 at the new 14% rate.
The phase-out is linear and dollar-for-dollar. Each $1,000 the lower-earning spouse earns above $0 reduces the claim by $1,000, reducing the credit by $140.
When the spousal credit applies
The federal spousal amount has three eligibility requirements per CRA:
- Married or common-law. Common-law means cohabiting for at least 12 months OR cohabiting and a shared child. Roommates and dating partners don't count.
- Living together for at least part of the year. A separation in mid-year usually still allows a partial claim.
- Lower-earning spouse's net income below the BPA. $16,452 in 2026. Above this, the credit is zero.
The credit is claimed on line 30300 of the working spouse's T1 return. Only one spouse claims it (the one with the higher income, typically). Tax software calculates this automatically when both spouses file together.
If the higher-earning spouse earns above $181,440 in 2026, the federal BPA starts phasing down to a smaller $14,829. The spousal amount phases down to that lower figure too. For high earners ($258,482+), the max spousal credit drops to $14,829 × 14% = $2,076.
For middle-income Canadian families, this high-income phase-out doesn't apply. The full $2,303 is available.
How the spousal credit phases out as the spouse earns more
This is where most stay-home parents lose money without knowing.
The spousal credit is dollar-for-dollar phased out as the lower-earning spouse's net income (line 23600) rises above zero. The phase-out hits the full Basic Personal Amount.
For a stay-home parent taking a small side gig:
- Side gig income: $0. Spousal credit: $2,303 federal + ~$650 provincial = $2,953 total.
- Side gig income: $5,000. Spousal credit: $1,603 federal + ~$450 provincial = $2,053 total.
- Side gig income: $10,000. Spousal credit: $903 federal + ~$250 provincial = $1,153 total.
- Side gig income: $16,452. Spousal credit: $0.
- Side gig income: $20,000. Spousal credit: $0.
Marginal cost of side-gig income to the household: each $1,000 of side-gig income costs the household about $185 in lost spousal credit. Plus the side-gig income is taxed at the stay-home spouse's marginal rate. That's 14% federal plus 5-10% provincial, or 19-24% combined for low-income earners.
So the effective marginal rate on the first $16,452 of side-gig income is roughly 38-43%, not 19-24%. The lost spousal credit is the hidden tax most parents don't see.
This is why stay-home parents who take small side gigs often net less than expected. The lost credit eats most of the upside. Side-gig income that clears about $20,000-$25,000 starts to net positively, but anything below that range typically loses ground.
The provincial spousal credits stack on top
Every province (except Quebec) has its own spousal credit using the provincial Basic Personal Amount. Provincial BPA varies a lot by province.
- Federal: $16,452 (lowest bracket 14%, credit max = $2,303)
- Ontario: $12,747 (lowest bracket 5.05%, credit max = $644)
- British Columbia: $14,560 (lowest bracket 5.06%, credit max = $737)
- Alberta: $22,323 (lowest bracket 8%, credit max = $1,786)
- Manitoba: $15,969 (lowest bracket 10.8%, credit max = $1,725)
- Saskatchewan: $20,381 (lowest bracket 10.5%, credit max = $2,140)
- Quebec: handled through Quebec's own spousal/conjugal credit structure
Alberta, Saskatchewan, and Manitoba pay the most generous provincial spousal credits. Their BPA is high. Ontario and BC pay less. Their provincial BPA is lower and their lowest tax bracket is lower in percentage terms.
For a typical single-income Ontario family, combined federal + provincial spousal credit is $2,303 + $644 = $2,947/year.
For Alberta the same is $2,303 + $1,786 = $4,089/year.
Same federal amount, very different provincial amount. The provincial spousal credit phase-out follows the same dollar-for-dollar rule as the federal.
The eligible-dependant credit for single parents
Single parents don't claim a spousal credit (no spouse), but they can claim the eligible-dependant amount on line 30400 instead. The amount and mechanic are identical to the spousal amount.
A single parent can claim the eligible-dependant amount for one qualifying dependant. Usually a child under 18. The rules:
- The single parent is unmarried, divorced, separated, or widowed during the tax year, AND
- The dependant lived with the single parent at some point during the year, AND
- The single parent supported the dependant.
The credit is $2,303 federal at 14% on the full BPA of $16,452. Plus the provincial equivalent (varies by province, see the table above). Same phase-out: dollar-for-dollar as the dependant's net income rises above zero.
For shared-custody parents, each parent can claim the eligible-dependant amount for ONE shared kid in alternating years. Or each can claim a different kid if there are two or more. Most separated parents work this out with their accountant or tax software at filing time.
A worked example: single-income family at $80,000
Concrete numbers. Ontario family, spouse A earns $80,000, spouse B stays home with two kids under 6.
Spouse A 2025 tax return:
- Employment income: $80,000
- RRSP contribution: $5,000
- Line 23600 (net income): $75,000
- Federal tax on $75,000: about $9,820
- Federal Basic Personal Amount credit: 14% × $16,452 = $2,303
- Federal spousal amount credit: 14% × $16,452 = $2,303 (full, since spouse B earned $0)
- Net federal tax owed: $9,820 − $2,303 − $2,303 = $5,214
Spouse B 2025 tax return:
- Employment income: $0
- Net income: $0
- Federal tax owed: $0
- Provincial tax owed: $0
- No filing required (but most spouses file anyway to keep CRA records current)
Combined household tax savings from the spousal credits (federal + Ontario):
- Federal: $2,303
- Ontario: $644
- Total: $2,947 in the household's pocket vs the same household at dual income.
If spouse B took a $20,000 part-time job, the spousal credit would drop to $0 (because $20,000 > $16,452). The household would gain $20,000 in spouse B's gross income. But lose $2,947 in spousal credit. Plus pay tax on the new income. Net contribution of the part-time job: $11,000-$13,000 of household cash, not the $20,000 it looks like on the paystub.
This is one of the four hidden levers that move when a stay-home parent considers returning to work. The full breakdown is on the why-the-math-changes page.
How to claim the spousal credit on the T1
The spousal credit is claimed on line 30300 of the working spouse's T1 return. The amount claimed equals the Basic Personal Amount minus the spouse's net income (line 23600).
Steps:
- Both spouses file a T1 return. At a minimum the working spouse files. The stay-home spouse usually files anyway to keep CRA records current.
- The working spouse enters the lower-earning spouse's line 23600 on Schedule 5 of their own return.
- Tax software (TurboTax, Wealthsimple Tax, StudioTax) calculates the credit automatically and applies it to line 30300.
- The provincial credit is calculated on the matching provincial form (ON428 for Ontario). It's applied to the provincial tax line.
If filing by hand, Schedule 5 walks the calculation step by step. The federal worksheet computes the spousal amount and the provincial worksheet computes the provincial equivalent. The two are claimed on separate lines.
Missed the credit in a prior year? File a T1 adjustment for up to 10 years back. Your spouse must qualify in each year claimed. CRA will refund the missed credits for any year your spouse earned below the BPA.
Frequently asked questions
Can I claim my stay-at-home spouse on taxes in Canada?
Yes, through the federal spousal amount (line 30300) and the matching provincial spousal credit. The combined value is about $3,000/year if your spouse earned no income. The credit phases out dollar-for-dollar as your spouse's net income rises from $0 to $16,452 (the 2026 Basic Personal Amount). Above that the credit is zero.
How much is the spousal amount worth in 2026?
Federal: $2,303 (14% of the $16,452 Basic Personal Amount). Provincial: $500-$700 in Ontario and BC, $1,700+ in Alberta and Saskatchewan. Combined federal + provincial for most Canadian families: about $3,000/year. The federal amount dropped from $2,468 in 2024 to $2,303 in 2026 because the federal lowest bracket fell from 15% to 14%.
When does the spousal credit phase out?
The phase-out is dollar-for-dollar as the lower-earning spouse's net income (line 23600) rises above zero. The credit hits zero when the lower-earning spouse's income reaches the Basic Personal Amount of $16,452. There is no partial-phase-out: every $1,000 of spouse income reduces the federal credit by $140 and the provincial credit proportionally.
What is the eligible-dependant amount?
The single-parent equivalent of the spousal amount. A single parent (unmarried, divorced, separated, or widowed) can claim the eligible-dependant amount on line 30400. The claim is for one qualifying dependant who lived with them and whom they supported. Same dollar value as the spousal amount ($2,303 federal in 2026), same dollar-for-dollar phase-out as the dependant's net income rises.
Can I claim the spousal credit if my spouse works part-time?
Yes, but the credit is reduced dollar-for-dollar by the spouse's net income. If your spouse earned $8,000 part-time, the federal spousal credit is 14% × ($16,452 − $8,000) = $1,183. Plus a proportional provincial amount. The credit hits zero when your spouse's net income reaches $16,452.
Verdict on the spousal credit for stay-home parents in Canada in 2026
The spousal credit for a stay-home parent in Canada in 2026 is worth about $3,000/year for most middle-income families. Single parents claim the same dollar value through the eligible-dependant amount instead. Both phase out dollar-for-dollar as the lower-earning spouse or dependant earns above the Basic Personal Amount of $16,452.
The credit is one of four structural reasons single-income Canadian families with kids under 6 often beat dual-income families. The other three: CCB recovery, CGEB recovery, and daycare avoided.
Run the math for your family on the advanced calculator. The spousal credit is included in the tax calculation when one spouse's income is below the BPA. Adjust the spouse B income slider to see the credit phase out in real time.