Canada pension income splitting and pension amount
Eligible pension income can be allocated between spouses for tax purposes, while the pension income amount has separate eligibility conditions.
On this page
- Allocation limit
- Up to 50% of eligible pension income.CRA, pension income splitting
- Federal pension amount
- Up to $2,000 in CRA's published 2025 return guidance.CRA, pension income amount for 2025
- Excluded pensions
- OAS, CPP and QPP payments are not eligible for this splitting election.CRA, pension income splitting
A joint tax election
Spouses or common-law partners who meet the conditions can jointly elect on Form T1032 to allocate up to 50% of eligible pension income. Both must be Canadian residents on December 31 of the tax year, or the date of death, and the relationship-breakdown separation condition must be met. Only one joint election can be made for a tax year. CRA, pension income splitting (opens in a new tab).
Eligible income and exclusions
Eligible income generally includes taxable life annuity payments from a pension or superannuation plan. RRIF and RRSP annuity payments generally qualify where the transferring spouse is at least 65 at year-end or received them because of a spouse's death. OAS, CPP and QPP payments are excluded from this election. CRA, eligible pension income (opens in a new tab).
The pension income amount is a separate claim
CRA's published return guidance is labelled for 2025, which is the latest published tax year. It gives a federal pension income amount of the lesser of $2,000 and the eligible amount calculated using the federal worksheet. CRA, pension income amount for 2025 (opens in a new tab).
Pension income eligible for the transferring spouse's pension income amount does not necessarily qualify for the receiving spouse's amount, because eligibility can depend on age. Splitting also changes individual net incomes and can affect credits and benefits based on one spouse's net income, such as the age amount, and OAS repayment. CRA, splitting and pension income claims (opens in a new tab).
Scope of this explanation
This is general information about Canada, not personal tax or financial advice. The pension income amount is not a $2,000 refund. This page does not calculate tax savings, recommend an allocation or project unpublished 2026 return guidance. It does not cover all pension types or provincial credits. The government does not endorse this website.