--- title: "Are Scholarships and Bursaries Taxable in Canada?" id: "17675" type: "post" slug: "scholarship-bursary-tax-canada-2" published_at: "2026-10-08T06:46:22+00:00" modified_at: "2026-10-12T09:36:23+00:00" url: "https://taxccount.com/blog/scholarship-bursary-tax-canada-2/" markdown_url: "https://taxccount.com/blog/scholarship-bursary-tax-canada-2.md" excerpt: "Getting a scholarship or bursary is a big help when you are studying. But you may wonder: do I have to pay tax on this money? The answer depends on the type of award, who receives it, and whether you..." taxonomy_category: - "Taxccount" --- [Taxccount](https://taxccount.com/blog/category/taxccount/) [October 8, 2026](https://taxccount.com/blog/2026/10/) # Are Scholarships and Bursaries Taxable in Canada? Getting a scholarship or bursary is a big help when you are studying. But you may wonder: do I have to pay tax on this money? The answer depends on the type of award, who receives it, and whether you are in school full-time or part-time. In Canada, the rules around scholarship and bursary taxation can seem confusing. This article breaks them down in plain language so you know exactly what to report and what to keep tax-free. Table of Contents [Toggle](#) ## What Is a Scholarship or Bursary? A scholarship is an award given to a student based on academic achievement, skills, or other merit. A bursary is similar but is often based on financial need. Both types of awards help pay for educational costs like tuition, books, and living expenses. ## Speak with a Taxccount expert [☎️ Get Help](https://taxccount.com/book-a-consultation/) Other related terms include: - **Fellowships:**Awards typically given to graduate students for research or academic work - **Prizes:** Awards for achievement or competition - **Research grants:** Funding given to support academic or scientific research All of these may be treated differently by the Canada Revenue Agency (CRA). ## Are Scholarships Taxable in Canada? Generally, scholarships and bursaries received by a student are eligible for an exemption under the Income Tax Act. This means most students do not pay tax on these amounts. However, the full tax treatment depends on whether you are a full-time or part-time student. ## The Full-Time Student Exemption If you are enrolled as a full-time student in a qualifying educational program at a post-secondary institution, you can claim an exemption for the full amount of any scholarship, bursary, or fellowship income you receive. This means: - A $10,000 scholarship is completely tax-free - A $5,000 bursary is completely tax-free - You do not need to report these amounts as income at all A qualifying educational program is one that: - Lasts at least three consecutive weeks - Requires at least 10 hours of work per week on courses or work in the program If your program meets these criteria and you are enrolled full-time, you do not owe any tax on your scholarship or bursary, no matter how large it is. ## What About Part-Time Students? If you are a part-time student, the exemption is more limited. Part-time students can only exclude scholarship or bursary income up to the amount of their tuition and related fees for the year. For example: - You are part-time and received a $3,000 bursary - Your tuition fees for the year are $2,000 - You can exempt $2,000 - The remaining $1,000 is taxable income Part-time students with a disability may qualify for the full exemption if they cannot attend school full-time because of their disability. ## Fellowships and Research Grants Fellowships and research grants are treated slightly differently: **Fellowships:** For full-time students, fellowships are generally fully exempt. For others, the taxable portion may be reduced by the costs incurred to earn the fellowship. **Research grants:** These are taxable, but you can deduct the expenses you incurred to do the research. The net amount (grant minus allowable expenses) is what gets added to your income. Expenses you can deduct from a research grant include: - Supplies used in the research - Travel required for the research - Salaries paid to assistants You cannot deduct personal living expenses from a research grant, even if you were doing research away from home. ## Awards Not Related to School Not all prizes and awards are connected to education. If you receive a prize or award that is not connected to your studies or your employment, it may be taxable. For example: - A prize for winning a community contest: usually taxable - An award from your employer for outstanding performance: taxable as employment income - A cash prize for a sports competition: taxable in some cases However, if the prize is a one-time award given for merit and is not connected to your job or your regular activities, it may be exempt. The CRA looks at whether the prize was given in recognition of achievement in a field open to the general public. ## How to Report Scholarship Income Even if your scholarship is tax-exempt, you may still receive a T4A slip from the institution that gave you the award. Box 105 on the T4A reports scholarship and bursary income. Here is how to handle it: 1. Enter the amount from Box 105 of your T4A on line 13010 of your T1 return 2. If you are a full-time student, claim the full exemption on line 13010 as well (the CRA software guides you through this) 3. If you are a part-time student, only the amount that exceeds your eligible tuition fees is taxable Most tax software handles this automatically when you enter your T4A information and your enrolment status. ## Moving Expenses and Scholarships If you moved to attend school full-time, you may be able to deduct moving expenses against your scholarship or bursary income. This is one of the few cases where moving expenses can be deducted against something other than employment income. The same 40-kilometre rule applies: your new home must be at least 40 km closer to your school than your old home was. ## Table of Summary | Scholarship & Bursary Topic | Key Information | | --- | --- | | Scholarships and Bursaries | Generally eligible for a tax exemption, depending on the student’s circumstances | | Full-Time Students | Scholarship, bursary, and fellowship income may be fully exempt for qualifying full-time students | | Qualifying Program | Generally must last at least three consecutive weeks and require at least 10 hours of work per week on courses or program work | | Part-Time Students | Exemption is generally limited to tuition and related fees for the year | | Students With a Disability | Part-time students with a disability may qualify for the full exemption if they cannot attend school full-time because of the disability | | Fellowships | Generally fully exempt for qualifying full-time students; treatment may differ for other recipients | | Research Grants | Generally taxable, but eligible research expenses may be deducted from the grant | | Research Expenses | Supplies, research-related travel, and salaries paid to assistants may qualify as deductions | | T4A Box 105 | Scholarship and bursary amounts may be reported in Box 105 of a T4A slip | | T1 Reporting | Scholarship amounts are reported on the T1 return as instructed, even when the amount is fully exempt | | Moving Expenses | Eligible students may be able to deduct moving expenses against scholarship or bursary income, subject to the applicable rules | | Tax Return | Filing a return can help students access benefits and credits such as the GST/HST Credit | ## Frequently Asked Questions ### Do I need to file a tax return if my only income is a scholarship? If your scholarship is fully exempt (as a full-time student), you technically have no taxable income from it. However, filing a return is still a good idea to receive other benefits like the GST/HST credit. ### My scholarship came from a foreign university. Is it still exempt? The exemption applies to scholarships from recognized post-secondary institutions. If your foreign institution qualifies under CRA rules, the exemption may apply. Check the CRA’s list of designated educational institutions. ### I received both a scholarship and employment income. How does this work? You report each separately. Your scholarship (if you are a full-time student) is exempt. Your employment income is taxable. They do not affect each other’s treatment. ### What if I drop out partway through the year? Your exemption is based on your enrollment at the time you received the award. If you were a full-time student when you received the scholarship, it is generally still exempt even if you later withdrew. ## Conclusion For most full-time students in Canada, scholarships and bursaries are completely tax-free. You do not have to pay any tax on those amounts, no matter how large. Part-time students have a more limited exemption tied to their tuition costs. Always report the amounts on your T1 return as instructed, even if the result is zero taxable income. And if you received a research grant, remember to track and deduct your eligible research expenses. ## Need Help With Taxccount? Scholarship and bursary taxation can be confusing, particularly when you receive a T4A, research grant, fellowship, or funding from multiple sources. Taxccount provides tax and [accounting services](https://taxccount.com/accounting-and-business-related-services-in-canada/) across Canada and can help students understand how their scholarships, bursaries, and other education-related income should be treated when filing their tax returns. If you are unsure whether your scholarship or bursary is taxable, contact Taxccount Canada for professional tax filing assistance. ## Book a free consultation with Taxccount today [☎️ Get Help](https://taxccount.com/book-a-consultation/) This is general information only and not professional advice. Consult a professional before acting. ##### Written and fact-checked by [Udit Gupta](https://taxccount.com/author-bio/) ***Ex Big4, Ernst & Young, Deloitte | International & Cross-Border Tax Specialist | CPA Canada In Depth Tax Training | Licensed Chartered Accountant from ICAI & MIA*** Udit Gupta has over 15 years of experience helping corporations & business owners with corporate structuring, corporate tax filing, bookkeeping, payroll, GST/HST, cross-border tax and CRA representation. Big 4 trained at Ernst & Young and Deloitte, and qualified as a Chartered Accountant in India and Malaysia, he founded accounting firm in 2014 to serve entrepreneurs, startups and non-resident business owners across Canada. 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