Pension Income Splitting

If you receive eligible pension income in Canada, you can legally transfer up to 50% of it to a lower-income spouse for tax purposes, shifting it into a lower tax bracket.

Higher Earner's Eligible Pension Income

Higher Earner's Other Income

Lower Earner's Total Income

Percentage to Split to Spouse (Max 50%)

Uses simplified 2024 Federal tax brackets for estimation purposes.

Estimated Tax Impact

$0
Estimated Tax Savings (Family Total)

Family Tax (No Split)

Family Tax (With Split)

By allocating $0 to the lower earner, you bring the higher earner down into cheaper tax brackets while filling up the lower earner's unused cheap tax brackets.