Canada's tax system can feel overwhelming when you first arrive. But filing your taxes correctly — and on time — is essential not just for compliance, but for accessing valuable benefits like the GST/HST credit, Canada Child Benefit, and other government programs. This guide walks you through everything newcomers need to know.
Canadian taxes are based on tax residency, not immigration status. You become a Canadian tax resident when you establish significant ties to Canada, which typically happens on your arrival date. From that date, you are subject to Canadian income tax on your worldwide income.
In your first year in Canada, you are a part-year resident. This means:
You file a single T1 General tax return for the year, noting your arrival date. The CRA uses this to calculate your tax on a prorated basis.
If April 30 falls on a weekend, the deadline moves to the next business day.
The main Canadian personal income tax form. All residents file this annually. In your arrival year, you note your arrival date on the form.
Calculates your federal income tax, basic personal amount ($15,705 in 2025), and other credits.
Used by part-year residents to report world income during the non-resident period. This affects eligibility for certain credits.
If you moved to Canada for a new job or to study, you may be able to deduct moving expenses against employment or study income.
Plus provincial/territorial tax on top of federal tax. Total effective tax rates vary by province. Ontario and BC have lower total rates than Quebec.
Every Canadian resident gets a non-refundable credit reducing taxes on the first $15,705 of income (2025). In your arrival year, this is prorated based on how many days you were in Canada.
A quarterly tax-free payment for low-to-moderate income individuals. You apply by filing your tax return — no separate application needed. Single individuals can receive up to ~$519/year; families more.
Tax-free monthly payments for families with children under 18. In 2025, the maximum benefit is approximately $7,786/year for a child under 6, and $6,570 for a child aged 6–17. File your taxes every year to receive CCB — it is recalculated annually based on prior year income.
Quarterly rebates for residents in provinces under the federal carbon pricing system (Alberta, Saskatchewan, Manitoba, Ontario, and others). You receive this automatically when you file taxes.
Each year you are a Canadian resident over 18, you earn $7,000 in TFSA contribution room (2025). Filing your taxes confirms your residency and builds your room. You cannot carry forward room from years you were not resident.
These slips should arrive by the end of February each year for the prior tax year.
The CRA sponsors free tax preparation clinics for newcomers, students, and lower-income Canadians. Tax volunteers prepare returns at no cost. Available at libraries, community centres, and settlement agencies.
Use CRA-certified tax software to file online. Free options include Wealthsimple Tax (SimpleTax), StudioTax, and UFile Free. Most newcomers can use these without issues.
H&R Block, TurboTax, and independent accountants are available for more complex situations (self-employment, foreign property, multiple income sources).
As a Canadian tax resident, you must report worldwide income — including income earned in your home country after your arrival date. Canada has tax treaties with many countries to prevent double taxation. See our guide on foreign income taxation for details.
Register for a My CRA Account online. This allows you to:
Register using your SIN at canada.ca/my-cra-account. Direct deposit setup ensures your GST/HST credit, CCB, and tax refunds go directly to your bank account.
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