Form T1032 is the joint election that lets a Canadian resident allocate up to 50% of their eligible pension income to their spouse or common-law partner, so that share is taxed in the other person's hands. Both of you sign it, the information must match on both returns, and it has to be filed by your filing due date for the year.
Everything below comes from the CRA's Form T1032 E (25) for 2025 and the pension income splitting page on canada.ca, as of October 2026.
The three conditions
- You weren't living separate and apart because of a breakdown in the relationship for a continuous 90 days or more that includes December 31, 2025. Living apart for medical, educational or business reasons doesn't stop you.
- You were both residents of Canada on December 31, 2025, or on the date of death.
- The transferring spouse received pension income that qualifies for the pension income amount, including eligible veterans benefits, or certain qualifying retirement compensation arrangement amounts and had reached 65 before the end of the year.
The receiving spouse's age doesn't matter. Only one joint election can be made for a tax year, so if you both have pension income, you decide who transfers and who receives.
What counts as eligible pension income
| Eligible | Not eligible |
|---|---|
| The taxable part of life annuity payments from a superannuation or pension fund or plan, at any age | Old age security payments |
| RRIF payments (including life income fund payments), if 65 or older at year end or received because of a spouse's death | Canada Pension Plan and Quebec Pension Plan benefits |
| RRSP annuity payments, on the same age or death test | Income from a United States IRA |
| Certain qualifying retirement compensation arrangement amounts | Treaty-exempt foreign pension income deducted on line 25600 |
| RRIF amounts on line 11500 transferred to an RRSP, another RRIF or an annuity |
Here's the age trap people miss: a workplace pension paid as a life annuity can be split before 65, but RRIF and RRSP annuity income generally can't until the transferring spouse is 65 at the end of the year, unless it's received because of a spouse's death. Variable pension benefits from a defined contribution provision of a registered pension plan, and pooled registered pension plan payments, follow the same 65-or-death rule.
Working through the form
- Step 1: identification for both of you.
- Step 2: the maximum split-pension amount. The transferring spouse works out eligible pension income from the line 31400 Federal Worksheet, adjusts for months married or living common-law if that changed in the year, then multiplies by the 50% maximum rate.
- Step 3: the amount you jointly elect, up to that maximum. It goes on line 21000 of the transferring spouse's return as a deduction and on line 11600 of the receiving spouse's return as income.
- Step 4: the adjustment to each spouse's pension income amount on line 31400.
- Step 5: the share of income tax deducted at source to move to the receiving spouse on line 43700.
If the transferring spouse died in the year, the form replaces the 12 months with the number of months up to and including the month of death.
The tax withheld moves too
Tax withheld from the pension follows the income in the same proportion. The CRA's example: if the transferring spouse allocates 50% of eligible pension income, 50% of the tax withheld at source on that pension income must also be allocated to the receiving spouse. Getting Step 5 wrong is a common reason the two returns don't reconcile.
The pension income amount for each of you
After splitting, each of you can claim the pension income amount on line 31400, up to the lesser of $2,000 and your qualifying pension income. For the transferring spouse it's the eligible pension income excluding what was allocated; for the receiving spouse it includes the allocated income that qualifies. Because eligibility depends on age, pension income that qualifies for the transferring spouse doesn't necessarily qualify for the receiving spouse, so read Note 1 in Step 4.
How it affects benefits
Splitting lowers the transferring spouse's net income and raises the receiving spouse's. Benefits based on your combined net income, such as the GST/HST credit, don't change. Anything based on one person's net income can, including the age amount, the spouse or common-law partner amount and the repayment of old age security benefits. Provincial and territorial programs can be affected too.
Filing, changing or revoking
On paper, attach a signed copy to both returns. If you file electronically, keep the form in case the CRA asks for it. You don't have to use the same percentage every year. The CRA may allow a late or amended election, or a revocation, if you apply on or before three calendar years after the filing due date for that year; an amendment needs a new jointly signed T1032, and a revocation needs a letter signed by both of you.
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The verdict
If one of you has a much larger pension than the other, run the T1032 numbers every year rather than defaulting to 50%: the best split depends on both incomes and on the old age security repayment. Check how much tax each of you has withheld too, because RRSP withdrawals on a T4RSP and pensions are taxed at source, and the TD1 you give each payer sets that withholding. The election itself goes with your T1 return.
Frequently asked questions
What is Form T1032?
It's the Joint Election to Split Pension Income, used to allocate up to 50% of a spouse's or common-law partner's eligible pension income to the other.
Can I split CPP or OAS with T1032?
No. Old age security, Canada Pension Plan and Quebec Pension Plan payments aren't eligible pension income for splitting.
Does my spouse have to be 65 to split pension income?
No. The receiving spouse can be any age. The age test applies to the transferring spouse for income such as RRIF and RRSP annuity payments.
Where does the split-pension amount go on the return?
On line 21000 of the transferring spouse's return and line 11600 of the receiving spouse's return.
Can we change the pension split after filing?
The CRA may allow a late or amended election, or a revocation, if you apply within three calendar years after the filing due date, with a new jointly signed form or letter.
