Updated: April 2025  |  bremo.io financial guides

Canadian Tax Guide for Newcomers 2025

Taxes for Newcomers to Canada

Understanding the Canadian tax system is one of the most important financial tasks for newcomers. Canada has a self-assessment tax system — you are responsible for filing your own tax return each year and declaring all your income. Filing taxes correctly and on time opens the door to valuable government benefits including the GST/HST credit, Canada Child Benefit (CCB), and provincial benefits. Many newcomers miss out on these benefits simply by not filing.

When Do You Have to File?

You must file a Canadian tax return for any year in which you were a Canadian tax resident. In the year you arrive in Canada, you become a tax resident on your arrival date. You file a "part-year resident return" for that first year, reporting:

• All Canadian income earned after your arrival date
• Foreign income earned before your arrival date (reported but may not be taxable in Canada)
• Foreign income earned after your arrival date (taxable in Canada — Canada taxes worldwide income for residents)

The tax filing deadline is April 30 for most individuals (June 15 for self-employed persons and their spouses, though taxes owing are still due April 30).

Canada's Tax on Worldwide Income

Once you become a Canadian tax resident, Canada taxes your worldwide income. This means income from foreign employment, foreign rental properties, foreign investments, and foreign businesses must be reported on your Canadian return. However, Canada has tax treaties with many countries to prevent double taxation — you can claim a foreign tax credit for taxes paid to foreign governments on the same income.

Key CRA (Canada Revenue Agency) Registrations

• CRA My Account: Create your personal CRA online account at canada.ca/cra. This is where you file returns, check benefit payments, update your address, and manage installment payments.
• Direct Deposit: Register your bank account with CRA for direct deposit of benefit payments and tax refunds — faster and more secure than cheques.
• T1 Return: The personal income tax return, filed annually.
• NETFILE: CRA's online filing system — most newcomers can file online using NETFILE-certified software (SimpleTax/Wealthsimple Tax is free).

Benefits You Access by Filing

Filing your tax return — even if you have zero income or owe no tax — triggers eligibility for important benefits:

• GST/HST Credit: Quarterly payment to lower-income individuals. Up to $519/year for singles, $680/year for couples (2024 amounts).
• Canada Child Benefit (CCB): Monthly tax-free payment for families with children under 18. Can reach thousands of dollars per year per child.
• Ontario Trillium Benefit: (Ontario residents) Combines energy, property tax, and sales tax credits into monthly payments.
• Provincial Benefits: Each province has additional credits and benefits triggered by filing.

T4, T5, and Other Tax Slips

Your employer will provide a T4 slip (employment income and deductions) by the end of February following the tax year. Banks provide T5 slips for interest income. Keep all slips received and match them against your return. CRA can see what slips have been issued in your name — omitting income reported on slips is a common audit trigger.

Getting Help with Taxes

Free tax filing help is available through the CRA's Community Volunteer Income Tax Program (CVITP), which operates in many communities across Canada. Settlement agencies and newcomer-serving organizations often host free tax clinics during the spring filing season. For complex situations (foreign income, self-employment, business income), a professional accountant (CPA) is worth the investment.