T4 Code 87 — Volunteer firefighter / search & rescue 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: Volunteer firefighter / search & rescue 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 (VFFA), search and rescue volunteers (SRVA), and similar emergency-services volunteers who received honoraria. The first $1,000 is exempt from tax and is NOT included in Box 14.

Any honoraria above $1,000 goes into Box 14 as regular employment income.

Separately from the exemption, qualifying volunteers can claim the Volunteer Firefighters' Amount (Line 31220) or Search and Rescue Volunteers' Amount (Line 31240) — a $3,000 federal non-refundable credit (doubled from $1,500 starting 2024). You cannot claim both the exemption and the credit on the same hours, but most volunteers do well taking the credit since $3,000 × 15% = $450 federal reduction usually beats the tax on $1,000 of honoraria.

Tax return implications

Informational on Code 87 — no tax effect on the exempt portion.
Line 31220 / 31240 — $3,000 federal amount (2024+) if you served 200+ eligible volunteer hours.

FAQ

Can I claim both the $1,000 Code 87 exemption and the $3,000 volunteer firefighters credit?

Not on the same hours. You elect one or the other. For most volunteers with 200+ hours, the $3,000 credit (Line 31220) produces a bigger federal tax reduction than the $1,000 exemption on Code 87 — confirm your employer has not already applied the exemption by leaving the honoraria out of Box 14.

Related T4 boxes

Code 81 — Placement or employment agency — gross earnings

Gross pay for agency workers where the agency did NOT withhold income tax — you owe tax on the whole amount.

Code 82 — Driver of taxis or passenger-carrying vehicles — gross earnings

Gross taxi / passenger-driver earnings where the employer did not withhold tax — reported on Line 10400.

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).