Filing your first Canadian tax return is one of the most important financial steps you'll take as a newcomer. Not only is it required by law, but filing your return is what activates your eligibility for government benefits worth hundreds — sometimes thousands — of dollars per year. This guide covers everything newcomers need to know about the Canadian tax system, what to expect, and how banking connects to your taxes.
Yes — if you were a Canadian resident at any point during the tax year, you likely need to file a return. "Resident" for tax purposes is not the same as immigration status. You become a tax resident of Canada when you establish significant residential ties here — a home, a spouse, dependants, bank accounts, and driver's licence. Most newcomers become Canadian tax residents on the day they arrive.
Canada's tax year runs January 1 to December 31. Returns for the previous year are due by April 30 of the following year (for most people). If you're self-employed, the deadline extends to June 15 for filing, though any taxes owed are still due April 30. For your first partial year, you report income earned from the date you arrived in Canada through December 31.
Every Canadian resident gets a federal basic personal amount — approximately $15,700 in 2025 — that reduces your taxable income. Your provincial government also has its own basic personal amount. Combined, these mean the first ~$15,000–$17,000 of income is effectively tax-free.
A quarterly payment from the federal government to low-to-moderate income Canadians to offset the cost of sales taxes. You don't need to apply separately — filing your tax return triggers the assessment. Single newcomers can receive $300–$500/year; families with children receive more.
Monthly tax-free payments for families with children under 18. Amounts depend on income and number of children and can be substantial — up to $7,000+ per year per child for lower-income families. Apply through CRA My Account or by completing Form RC66.
If you paid tuition at an eligible Canadian post-secondary institution, you can claim the tuition tax credit using your T2202 slip. Unused credits can be carried forward to future years.
If you moved to Canada to work or study, you may be able to deduct eligible moving expenses from your Canadian employment or business income. Keep receipts for travel, temporary accommodation, and shipping.
Unlike the United States (which has separate federal and state returns), Canadians file one federal/provincial combined return through the CRA — except in Quebec, where you file a separate provincial return with Revenu Quebec as well. If you live in Quebec, you will file two returns annually.
Options for filing:
CRA My Account is the online portal where you can view your tax slips, check benefit payments, update your banking information for direct deposit, and more. Register at canada.ca/my-cra-account. You need your SIN and your most recent notice of assessment (or some basic information from your tax return if it's your first year). Setting up direct deposit in CRA My Account ensures your GST credit and CCB payments go directly to your bank account.
KOHO gives you a free account with no monthly fees and no minimum balance — available to anyone in Canada regardless of credit history or how long you've been here. Perfect for newcomers. Use code 45ET55JSYA for a bonus when you sign up.
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