Pension income splitting
A tax election letting a couple allocate up to 50% of eligible pension income to the lower-income spouse or partner.
Last reviewed July 21, 2026
Reviewed for accuracy and clarity by Sandeep Singh before publication. Learn about our editorial process.
What it means
Pension income splitting is a joint election (filed using Form T1032) that allows a couple to allocate up to 50% of one partner's eligible pension income — such as RRIF withdrawals or employer pension payments — to the other partner's tax return, generally to reduce the household's overall tax bill.
Why it matters
When one partner has significantly more pension income than the other, splitting can move some of that income into a lower tax bracket on the receiving partner's return, reducing the combined amount of tax owed.
Common misunderstandings
- CPP and OAS are not "eligible pension income" for this specific election — CPP has its own separate sharing rules, and OAS isn't splittable at all.
- Both partners must be Canadian residents for the tax year, and the election is made jointly, filed with both returns.
Where you'll see it
On Form T1032 at tax time, in retirement income planning conversations for couples with uneven pension income.
Related terms
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