What an Apprenticeship Costs in Canada, and the Loans and Grants That Cover It

An apprenticeship costs much less than most college or university programs because you earn wages on the job, but the in-school blocks bring real costs: classroom fees, tools, travel and weeks of lower income. In Red Seal trades outside Quebec, the Canada Apprentice Loan lends up to $4,000 interest-free for each period of technical training, for up to five periods, with no payments until you finish or leave. Federal grants add $1,000 per level for the first two levels and $2,000 when you certify. You may be able to collect EI during full-time school blocks, deduct part of the cost of tools, and, in Ontario, get a tools grant of $400 to $1,000 depending on your trade.

Where the money goes

Apprenticeship costs vary by province and trade, so check your own training provider. The main costs are classroom or in-school fees for each level, books and supplies, tools and safety gear your employer requires you to provide, travel or living away from home if the school is far, and the income gap while you are in a full-time block and not earning your usual wage. The supports below are built around those costs.

The Canada Apprentice Loan

The federal government says the Canada Apprentice Loan helps you complete an apprenticeship in a designated Red Seal trade, with up to $4,000 in interest-free loans per period of technical training. You can use the money for tuition, tools, equipment and living expenses, to cover lost wages or to support your family. You make no payments and no interest builds until after you complete or leave your training. The loan is available everywhere except Quebec, which has its own support.

The Canada Apprentice Loan Service Centre adds the limits. You can borrow for up to five periods of technical training, and the loan stays payment-free for up to 312 weeks, or six years, while you are confirmed as registered in a Red Seal apprenticeship. You must be a Canadian citizen, permanent resident or protected person, be registered in a Red Seal trade, be enrolled in block-release or equivalent full-time technical training with an approved provider, and pass a credit check if it is your first application. You cannot get it while in high school, if you are registered in Quebec, or if you are receiving a Canada Student Loan for the same training.

Federal grants

The federal government lists the Apprenticeship Incentive Grant at $1,000 per year or level after you complete the first or second year in a designated Red Seal trade, and the Apprenticeship Completion Grant at a lifetime $2,000 for registered apprentices who complete their training and get journeyperson certification. The CRA says both are taxable and reported from box 105 of your T4A, and sums them up as up to $4,000 in grants. The Apprenticeship Incentive Grant for Women pilot ended on 31 March 2023.

EI during school blocks

If your province or territory refers you to full-time technical training, Service Canada says you may receive EI regular benefits while you attend. You need a 16-digit reference code for each block, you serve the one-week waiting period only once for the same apprenticeship, and if you are on leave from your job for the block, benefits end on the last day of the course. In 2026, EI pays 55% of average insurable weekly earnings up to $729 a week. See EI and going back to school.

Tools: the deduction, the rebate and Ontario's grant

Employed tradespeople can deduct part of the cost of new tools their employer requires them to provide, with the employer certifying on Form T2200. On its page for 2024, the CRA gives the maximum as the lesser of $1,000 and the cost of eligible tools minus $1,433 (or your trade employment income plus apprenticeship grants, if lower). In the CRA's example, an electrician who spent $2,500 deducts $1,000. That page shows 2024 figures, so check the threshold for your own tax year. You may also be able to claim a GST/HST rebate on the tools. Phones and computers generally do not qualify.

Ontario says you qualify for the Tools Grant if you completed or were exempted from level one in-class training on or after 1 April 2020, have a registered training agreement and have been registered as an apprentice for at least 12 months. Other provinces have their own programs, so check your apprenticeship authority.

Example with made-up inputs

These numbers are an example with made-up inputs. Taylor, a first-year electrical apprentice in Ontario, attends an 8-week school block. Costs: $1,400 of fees, books and supplies, $400 of travel, and $8,000 of wages Taylor would normally earn, for $9,800. Taylor's EI referral pays $600 a week for 7 weeks after the one-week wait ($4,200). Taylor borrows $2,500 from the Canada Apprentice Loan, interest-free. After finishing level one, Taylor receives the $1,000 incentive grant. The remaining $2,100 gap is covered from savings, and the loan waits until Taylor completes the apprenticeship.

Steps

1. Register as an apprentice with your provincial authority and confirm your trade is Red Seal.
2. Ask for your EI reference code before each full-time school block.
3. Apply for the Canada Apprentice Loan online before or during each block.
4. Apply for the incentive grant after levels one and two, and the completion grant when you certify.
5. Ask your employer to complete Form T2200 for required tools, and keep receipts.
6. Check provincial supports, such as Ontario's Tools Grant and Apprentice Development Benefit.

For exam fees, see licensing exam fees and the tuition credit. For student loan interest, see line 31900, which also covers Canada Apprentice Loans.