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A number of tax provisions specifically concern tax-paying seniors:

Pension Sharing
Pension Splitting
Age Amount
Guaranteed Income Supplement: Non-taxable income.
Old Age Security: Taxable income - At $64,718 in annual income, OAS benefits must be partially paid back (At $104,903 in annual income, OAS benefits must be paid back in full).
Canada Pension Plan: Taxable income (maximum pensionable earnings are $44,900 for 2008 – for contributors only).
Employer-Sponsored Pension Plan: Taxable income.

What is it?
Pension sharing splits CPP payments between a married or common-law couple and may reduce their tax burden.
Who qualifies?
Married or common-law partners living together who are both 60 or older and receiving CPP Retirement pension benefits. Either partner can apply, and at least one must be a CPP contributor.
How does it work?
Couples can share the portion of their CPP Retirement pension benefit earned during their time living together. A single CPP Retirement pension can also be shared.

What is it?
Pension splitting allows for individuals to allocate up to one-half of their eligible pension incomes to a spouse or common-law partner. This provision was introduced in 2007.
What is “eligible pension income?”
Eligible pension income is the taxable part of pension payments from a superannuation or pension fund/plan, regardless of age. For individuals who are 65 or older, this also includes annuity, RRIF, and RRSP payments. Pension income is also eligible if this income is allocated as the result of the death of a spouse or common-law partner (e.g., a spouse’s private pension survivor benefits).

OAS payments, CPP (and QPP) payments, periodic RRSP withdrawals, and payments from a Retirement Compensation Agency (RCA) are not eligible pension incomes for splitting.

How does it work?
Pension recipients can allocate up to one-half of their incomes to a spouse or common-law partner, depending on the spouse’s or partner’s income, by reporting it on their tax returns.
As pension splitting affects the calculation of income and tax payable for both persons, they must both agree to the allocation in their tax returns for the year in question.

What is it?
Individuals who attain the age of 65 before the end of the year may claim an age amount in calculating their federal non-refundable tax credits. The maximum claim is $5,177 (2008).
Who qualifies?
If a person turns 65 before the end of the year, and his or her net income was:
- $30,936 or less, the full credit can be claimed;
- more than $30,936, but less than $65,449, a portion of the credit can be claimed;
- $65,449 or more, the amount cannot be claimed.
- An individual’s spouse or common-law partner may be eligible to claim all or a portion of the age tax credit, subject to certain limitations.

Pension plans are a common form of retirement investment used by individuals. Some types include:

Each person’s private pension plan is unique to his or her circumstances. For more information on private pensions, consult a financial advisor.

The Canada Revenue Agency publishes the pamphlet “When You Retire,” which is available on the CRA Web site at: http://www.cra-arc.gc.ca/E/pub/tg/p119/p119-e.html

Federal tax rates for 2007 are:

15.5% on the first $37,178 of taxable income
22% on the next $37,179 of taxable income (on the portion of taxable income between $37,178 and $74,357)
26% on the next $46,530 of taxable income (on the portion of taxable income between $74,357 and $120,887)
29% of taxable income over $120,887