Filing taxes during retirement doesn't have to be complicated. With the right tax software, Canadian retirees can maximize their refunds, claim all eligible benefits, and handle pension income splitting with ease. This comprehensive guide examines the best tax software options specifically suited for retirees in 2025.
Why Retirees Need Specialized Tax Software
Retirement brings unique tax considerations that many working Canadians don't face. You may be dealing with multiple income streams including Old Age Security (OAS), Canada Pension Plan (CPP), pension income, RRSP/RRIF withdrawals, and investment income. Each has different tax implications and eligibility rules.
The right tax software helps you:
Navigate pension income splitting to reduce your tax burden
Claim the Age Amount credit and pension income credit
Optimize OAS and Guaranteed Income Supplement (GIS) benefits
Avoid the OAS clawback if your income exceeds certain thresholds
Handle medical expenses and disability tax credits
Maximize provincial senior credits and benefits
Top Tax Software for Canadian Retirees in 2025
1. TurboTax - Best Overall for Retirees
Price: Free to $315 (Free version available for simple returns including retirees)
TurboTax stands out as the most comprehensive option for Canadian retirees. It's particularly strong for those with complex pension situations or multiple income sources.
Key Features for Retirees:
Automatic pension income splitting optimizer that calculates the ideal amount to split between spouses
Step-by-step guidance for claiming Age Amount, pension income credit, and medical expenses
Auto-fill My Return feature imports your T4A(OAS), T4A(P), and T4RIF slips directly from CRA
Handles OAS clawback calculations automatically
Clear explanations for retirees claiming GIS or other income-tested benefits
Live support from tax experts available with paid versions
Best For: Retirees with multiple pension sources, those who want optimization features, or anyone who values comprehensive support and guidance.
Drawbacks: Can be the most expensive option, especially for business returns. However, basic returns for retirees receiving employment insurance benefits, tuition fees, or pension income may qualify for the free version.
2. Wealthsimple Tax (formerly SimpleTax) - Best Free Option
Price: Free (donation-based)
Wealthsimple Tax offers a truly free, pay-what-you-want model that's perfect for budget-conscious retirees. It's Canadian-owned and designed with simplicity in mind.
Key Features for Retirees:
Completely free for all returns, including complex ones
Handles pension income splitting with Form T1032
Auto-fill My Return compatibility
Covers all CRA tax forms and schedules
Clean, intuitive interface
Optional audit support for $40
Mobile-friendly for iOS and Android
Best For: Retirees with straightforward tax situations, those comfortable with less hand-holding, and anyone wanting to minimize costs.
Drawbacks: Limited customer support compared to paid options. No phone support unless you purchase the premium add-on. Cannot file for residents of Quebec.
3. H&R Block - Best for In-Person Support
Price: Free to approximately $60 for online versions
With over 55 years of Canadian tax experience and 1,000+ physical offices across Canada, H&R Block offers the best of both worlds: DIY software and professional support when needed.
Key Features for Retirees:
Option to drop off documents at physical locations
Online software with pension splitting capabilities
Comprehensive help for medical expenses and disability credits
Strong support for retirees managing rental income
Ability to switch to full-service support if needed
Free version available for basic returns
Best For: Retirees who want the option of in-person assistance, those with questions about complex deductions, or anyone who prefers local support.
Drawbacks: Premium features cost more than some competitors. Interface may be less modern than newer software.
4. UFile - Best Value for Features
Price: Free for students, competitive pricing for others
UFile offers excellent value with robust features at a reasonable price point. It's been serving Canadians for years and handles retirement situations well.
Key Features for Retirees:
Completely free for students regardless of income
Available online and as downloadable software
Handles pension splitting and all retirement income types
Strong medical expense tracking
Multi-device support (Windows, Mac, tablet, smartphone)
Auto-fill My Return feature
Clear interface with guided assistance
Best For: Retirees looking for middle-ground pricing with comprehensive features, or anyone who prefers downloadable software over web-based options.
Drawbacks: Customer support may have longer wait times during peak tax season.
5. StudioTax - Best Budget Option with Desktop Software
Price: Free (donation-based)
StudioTax is a lightweight, no-frills option that's particularly popular with cost-conscious seniors who don't need extensive guidance.
Key Features for Retirees:
Completely free
Downloadable desktop software (Windows)
Handles basic pension splitting
NETFILE certified
Low system requirements
Best For: Tech-savvy retirees with straightforward returns who want free desktop software.
Drawbacks: More basic interface, limited guidance compared to premium options, Windows only.
Key Features Retirees Should Look For
1. Pension Income Splitting Optimizer
Pension splitting is one of the most valuable tax strategies for retired couples. It allows you to transfer up to 50% of eligible pension income to your spouse for tax purposes, potentially saving thousands of dollars.
What's eligible:
Company pension plans (defined benefit or defined contribution)
RRIF income (if 65 or older)
Life Income Fund (LIF) payments (if 65 or older)
Annuity payments (if 65 or older)
What's NOT eligible:
CPP payments (though CPP sharing is available through separate rules)
OAS payments
GIS or other income-tested benefits
Premium software like TurboTax automatically calculates the optimal split amount by analyzing both spouses' income and tax situations. This feature alone can justify the cost of paid software for many couples.
2. Age Amount and Pension Income Credit Support
The Age Amount provides a federal tax credit of approximately $8,200 (for 2025) if you're 65 or older, though it phases out at higher incomes. The Pension Income Amount offers an additional credit of up to $2,000 for eligible pension income.
Good tax software should:
Automatically calculate these credits based on your age and income
Explain eligibility requirements
Optimize pension splitting to help both spouses claim the pension income credit
3. Medical Expense Optimization
Many retirees have significant medical expenses. Tax software should help you:
Track and categorize eligible expenses
Calculate expenses for both you and your spouse
Determine whether it's better for the higher or lower-income spouse to claim
Identify often-missed eligible expenses (dental, prescription glasses, medical devices, etc.)
4. OAS Clawback Management
If your net income exceeds approximately $93,454 (for 2025), you'll face the OAS recovery tax (clawback). For every dollar above this threshold, you lose 15 cents of OAS benefits.
Your tax software should:
Clearly show when you're approaching the clawback threshold
Calculate the exact amount of recovery tax
Suggest strategies to minimize the impact (like pension splitting)
5. CRA Auto-Fill My Return Compatibility
This feature saves enormous time by automatically importing your tax slips from the CRA, including:
T4A(OAS) - Old Age Security
T4A(P) - Canada Pension Plan
T4RIF - RRIF withdrawals
T5 - Investment income
And many others
All major tax software options support this feature, but ease of use varies.
How to Choose the Right Software for Your Situation
For Simple Retirement Income
If you receive: OAS, CPP, and maybe a small pension or RRIF withdrawal Best choice: Wealthsimple Tax (free) or TurboTax Free Why: Your situation is straightforward, and free options handle it perfectly well.
For Multiple Pension Sources
If you have: Company pension, RRIF, non-registered investment income Best choice: TurboTax Standard or H&R Block Why: You'll benefit from optimization features and better guidance on complex interactions.
For Couples with Income Disparity
If one spouse earns significantly more: Large pension vs. small CPP/OAS Best choice: TurboTax (for pension splitting optimizer) or UFile Why: Pension splitting can save you thousands, and optimization features ensure you get it right.
For Limited Computer Skills
If you prefer: Simplicity or in-person help Best choice: H&R Block (in-person support) or TurboTax (excellent guidance) Why: Both offer human support when needed.
For Low-Income Seniors
If you receive: GIS or live on minimal income Best choice: Wealthsimple Tax or StudioTax Why: Both are completely free, and filing your taxes ensures continued GIS eligibility.
Important Tax Tips for Retirees in 2025
1. File Even with No Taxable Income
Even if your income is too low to owe taxes, you must file to:
Continue receiving GIS payments
Maintain eligibility for GST/HST credit
Qualify for provincial senior benefits
Enable income splitting in future years
2. Don't Forget Provincial Credits
Beyond federal benefits, each province offers additional credits for seniors:
Ontario: Ontario Trillium Benefit, property tax credits
BC: Home owner grant, senior's supplement
Alberta: Alberta Seniors Benefit
Manitoba: Education Property Tax Credit
And more in other provinces
Make sure your software supports provincial credits for your region.
3. Consider the Timing of RRSP/RRIF Withdrawals
Taking large withdrawals can:
Trigger OAS clawback
Reduce GIS eligibility
Affect Age Amount credit
Your tax software won't tell you to delay withdrawals until next year, but it will show you the impact. Consider this when planning.
4. Track Medical Expenses Year-Round
Keep receipts for:
Prescription medications
Dental work
Vision care (glasses, contacts, laser surgery)
Medical devices (hearing aids, walkers, etc.)
Premiums for private health insurance
Attendant care or nursing home costs
Travel expenses for medical treatment (if more than 40km away)
5. Update Your Information Promptly
Report changes to Service Canada immediately if:
You leave Canada for more than 6 months
Your marital status changes
Your income changes significantly
You move addresses
Delays in reporting can interrupt GIS or OAS payments.
NETFILE Certification: What You Need to Know
All software discussed in this guide is NETFILE certified by the Canada Revenue Agency. This means you can:
File your return electronically with instant confirmation
Receive your refund faster (typically within 2 weeks)
Avoid mailing paper returns
Get immediate notification if there are issues with your return
NETFILE is available for tax years 2017 through 2024. If you need to file older returns, you'll need to paper-file or use alternative methods.
Frequently Asked Questions
Q: Is tax software safe for my personal information?
A: NETFILE-certified software uses encryption and secure transmission. However, review each provider's privacy policy. The CRA doesn't automatically guarantee privacy practices.
Q: Can I switch tax software from year to year?
A: Yes, though some convenience features (like importing prior year data) work best when you use the same software consistently.
Q: What if I make a mistake when I file my tax returns?
A: You can file an adjustment request through the CRA's My Account portal or by mailing Form T1-ADJ. Some software offers free re-filing if you discover errors.
Q: Do I need to mail my T-slips to CRA if I file electronically?
A: No. When you NETFILE, you don't mail anything. Keep your slips and receipts for six years in case of an audit or review.
Q: Can tax software help with estate returns?
A: Some software handles final returns for deceased persons, but this is complex. Consider professional help for estate situations.
Final Recommendations
Best Overall Winner: TurboTax The pension splitting optimizer, comprehensive support, and retirement-specific features make it the top choice for most retirees, especially couples with pension income.
Best Free Option: Wealthsimple Tax Completely free with no income limits or restrictions. Perfect for retirees on fixed incomes who want quality software without the cost.
Best for Support: H&R Block The combination of DIY software and 1,000+ physical locations across Canada provides unmatched support options.
Best Value: UFile Strong middle-ground option with all necessary features at competitive pricing.
Comparison table (at-a-glance)
| Software | Best for | Price (typical) | Pension & RRIF support | Import / Auto-fill | In-person help |
|---|---|---|---|---|---|
| Wealthsimple Tax | Simple returns / free | Donation / free | Good | Good | No |
| TurboTax | Complex returns / expert help | Free → Paid tiers | Excellent | Excellent | Limited (online + reviews) |
| H&R Block | In-person help | Paid (higher) | Good | Good | Yes (offices) |
| StudioTax | Offline / low-cost | Low fee | Basic | Limited | No |
| UFile | All-rounder | Paid | Good | Good | Limited |
How to pick — 3 questions to ask yourself
How complex is my return? (pension/RRIF + investments + foreign property = choose TurboTax or a pro)
Do I want a human to review my return? (Yes → H&R Block or TurboTax Assist/Full Service)
Am I comfortable with online-only, donation-based software? (If yes, Wealthsimple Tax is worth trying.)
Getting Started
Remember, filing your taxes isn't just about paying what you owe or getting a refund - it's essential for maintaining your retirement benefits like GIS and ensuring you receive all credits and benefits you're entitled to.
Choose software that matches your comfort level with technology, the complexity of your situation, and your budget. The right choice will make tax time less stressful and help you keep more money in your pocket during retirement.
Disclaimer: Tax laws and software features change regularly. Always verify current features and pricing on software providers' websites. This guide is for informational purposes only and doesn't constitute tax advice. Consult a qualified tax professional for advice specific to your situation.
