T4 Code 87 — Emergency services volunteer exempt amount
Up to $1,000 of honoraria from volunteer emergency services — exempt from tax; excess counts as employment income.
At a glance — Code 87
- Box name
- Emergency services volunteer exempt amount
- T1 line
- Not reported on T1 directly
- Check against
- Total honoraria received; only the first $1,000 is exempt.
What Code 87 means
Code 87 is used for volunteer firefighters, search and rescue volunteers, and similar emergency-services volunteers who received honoraria from a government, municipality or public authority. The first $1,000 from each eligible employer is exempt from tax and is NOT included in Box 14.
Any honoraria above $1,000 goes into Box 14 as regular employment income.
The alternative to the exemption is the Volunteer Firefighters' Amount (Line 31220) or Search and Rescue Volunteers' Amount (Line 31240) — a $6,000 non-refundable credit amount, doubled from $3,000 by Budget 2024 for the 2024 and later tax years, claimed at the lowest federal rate. It is strictly one or the other: choosing the $1,000 exemption blocks the credit entirely, and choosing the credit means adding the Code 87 amount back into income at Line 10100. With 200+ eligible hours the credit is usually the larger of the two, because $6,000 claimed at the lowest rate normally exceeds the tax saved on $1,000 of honoraria — but the lowest federal rate is being reduced over 2025 and 2026, so run both numbers for your own year and bracket.
Tax return implications
- Informational on Code 87 — no tax effect on the exempt portion.
- Line 31220 / 31240 — $6,000 federal amount (2024+) if you served 200+ eligible volunteer hours.
FAQ
Can I claim both the $1,000 Code 87 exemption and the $6,000 volunteer firefighters credit?
No — it is an outright choice. If you claim the $1,000 exemption you cannot claim the Volunteer Firefighters' or Search and Rescue Volunteers' Amount at all. Going the credit route means putting the Code 87 amount back into income on Line 10100 alongside Box 14, then claiming $6,000 on Line 31220 or 31240. For most volunteers with 200+ eligible hours the credit wins, but check it against your own rate.
Related T4 boxes
Code 81 — Placement or employment agency — gross earnings
Gross pay to a self-employed placement or employment agency worker — never included in box 14.
Code 82 — Driver of taxis or passenger-carrying vehicles — gross earnings
Gross earnings paid to a self-employed taxi or passenger-vehicle driver — never included in box 14.
Code 85 — Employee-paid premiums for private health services plan
PHSP premiums you paid through payroll — eligible as medical expenses on Schedule 1 / Line 33099.
Box 14 — Employment income
Your total gross employment income for the year before any deductions — salary, wages, bonuses, commissions, taxable benefits and most other pay.
Filing your return? Use the payroll deductions calculator to verify the amounts on your T4 match expected CPP, EI and income tax withholdings, and the income tax calculator to estimate your refund or balance owing.
Sources
T4 box definitions from CRA T4 employer guide. Rates and thresholds current for 2025; file your 2025 T1 by April 30, 2026 (self-employed June 15).
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