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Test your knowledge
Under the pension income splitting rules, what percentage of your eligible income can you allocate to your spouse to lower your tax bill as a couple?
March 25th, 2026
Answer: 50%.
If retired spouses find themselves in different income tax brackets, the one paying more tax can allocate up to half of his or her pension income to the other spouse when filing an income tax return. In many cases, doing so can result in a lower total tax bill for the couple. Be aware, however, that not all pension income is eligible for splitting.
To learn more about this topic, read this article.
The following source was used to prepare this article:
Government of Canada, “Pension income splitting.”
