Skip to main content

Learning & Development – Taxable vs. Non-Taxable Reimbursements

Danielle Constantine avatar
Written by Danielle Constantine
Updated over a week ago

When employees pursue professional development, it's important to determine whether the expense can be reimbursed as a non-taxable benefit through their spending account or must be reported as taxable income. The CRA provides clear guidance on this.


What qualifies as non-taxable?

Reimbursements for courses, programs, or certifications are non-taxable when the training is:

  • Directly related to the employee’s current job

  • Intended to maintain, upgrade, or update existing skills

  • Considered primarily for the employer’s benefit

Examples:

  • Role-specific training or workshops

  • Certification renewals required for the job

  • Professional development to stay current in one’s field


What qualifies as taxable?

If the training is not directly related to the employee’s current job or results in a long-term benefit to the employee (like a diploma or degree), it’s considered taxable.

Examples:

  • General leadership or communication courses not tied to current duties

  • Degree or diploma programs

  • Personal-interest courses

Did this answer your question?