Filing Taxes as a Newcomer to Canada — 2025 Guide

Your first Canadian tax return is different from future years. Understand residency rules, partial-year income, foreign assets, and CRA benefits you may be missing.

When Do You Become a Canadian Tax Resident?

Canada taxes residents on their worldwide income. You become a Canadian resident for tax purposes on the date you establish significant residential ties to Canada. This is typically the day you arrive with the intent to settle — your landing date as a permanent resident, the start date of your work or study permit, or the day you move into a Canadian home.

Significant residential ties include: a home in Canada, a spouse or dependants living in Canada, personal property in Canada, and social ties like a Canadian bank account, driver's licence, or provincial health card. Before your arrival date, Canada only taxes Canadian-source income (e.g., Canadian rental income).

Your First Tax Return: The Partial-Year Return

In your first year as a Canadian resident, you file a T1 General tax return covering only the portion of the year from your arrival date to December 31. For example, if you arrived on September 1, you report Canadian income from September 1 to December 31 only. Income earned in your home country before arriving in Canada is generally not included on your Canadian tax return.

However, if you had foreign income while a Canadian resident — for example, income from investments or rental properties abroad — that income must be reported. Canada taxes residents on worldwide income from the date residency begins.

Key Tax Deadlines for Newcomers

Deadline	What It Covers
April 30 each year	T1 return filing deadline for most individuals
June 15 (if self-employed)	Filing deadline for self-employed individuals (taxes still due April 30)
April 30	Payment deadline — interest accrues after this date
October 15 (if abroad)	Extended deadline for non-residents filing on Canadian income

Benefits You Unlock by Filing a Tax Return

Filing your tax return — even if you owe no tax — is essential to receive Canadian government benefits. Many newcomers miss thousands of dollars in benefits by not filing promptly:

• GST/HST Credit: Up to $519/year per adult (2025 amounts), paid quarterly
• Canada Child Benefit (CCB): Up to $7,787/year per child under 6, income-tested
• Climate Action Incentive Payment (CAIP): Paid quarterly in eligible provinces
• Ontario Trillium Benefit and other provincial credits
• RRSP contribution room: Begins accumulating from your first year of Canadian income

Foreign Assets and the T1135 Form

If you own foreign assets worth more than $100,000 CAD at any point during the year, you must file Form T1135 (Foreign Income Verification Statement) with your tax return. This includes foreign bank accounts, investments, rental properties, and business interests. Failure to file T1135 when required results in significant penalties — up to $2,500 per year, and up to 5% of the unreported asset value for gross negligence.

As a newcomer, your first year is particularly important to get right. Consider working with a tax professional experienced with newcomer returns in your first year.

Free and Low-Cost Tax Filing Resources

• CRA NETFILE-certified software: Many free options available for simple returns (Wealthsimple Tax, SimpleTax, StudioTax)
• Community Volunteer Income Tax Program (CVITP): Free tax clinics across Canada for eligible individuals with modest income
• CRA My Account: Register online at canada.ca to track your return, view benefit payments, and access tax slips
• Settlement agencies: Many newcomer settlement services offer tax filing assistance free of charge

Common Newcomer Tax Mistakes to Avoid

• Not filing because you had no Canadian income — you still need to file to receive benefits
• Forgetting to report foreign income earned after your arrival date
• Missing the T1135 filing if you have foreign assets over $100,000
• Using the wrong province of residence — it's where you lived on December 31, not where you worked
• Not claiming all immigration-related moving expenses (eligible if you moved to Canada to start work or school)