How to File Your Taxes in Canada 2025: Step-by-Step Guide

Collect all slips and receipts

Before you can file, you need to collect every relevant tax document from the past year. Employers must issue T4 slips by the last day of February, so you should have them by early March. Other common slips include:

• T4 — Employment income
• T5 — Investment income (interest, dividends)
• T3 — Trust income (ETFs, mutual funds)
• T4A — Pension, self-employment, or other income
• T4E — Employment Insurance benefits
• RRSP contribution receipts
• T2202 — Tuition tax certificate
• Medical receipts
• Charitable donation receipts
• Child care receipts

You can also log into CRA My Account to find most of your slips electronically, which is often faster and easier than waiting for paper copies.

Pick how you will file

There are three main ways to file your taxes in Canada:

1. Online with certified tax software (NETFILE) — This is by far the most popular method. Software guides you through each question, automatically calculates your return, and submits directly to the CRA. Most software is free for simple returns. NETFILE opens in mid-February each year.
2. Through a tax preparer or accountant — If your taxes are complex (business income, rental income, estate, multiple jurisdictions), a professional can be worth the fee.
3. Paper return — You can download Form T1 from the CRA website, complete it manually, and mail it to your tax centre. This takes longer to process (8 weeks vs. 2 weeks for online).

Include every source of income

The CRA requires you to report all income you earned in 2024, regardless of where it came from. Common income sources include:

• Employment income from T4 slips
• Self-employment or freelance income
• Investment income (interest, dividends, capital gains)
• Rental income
• Old Age Security and CPP
• Employment Insurance benefits
• Foreign income (must be converted to Canadian dollars)

Even if you did not receive a slip for income, you are still required to report it. Failing to report income is one of the most common audit triggers.

Reduce your tax owing

This is the step many Canadians miss out on. There are dozens of deductions and credits that can lower your tax bill significantly:

• RRSP contributions — Deductible from income, reducing tax owed
• Basic Personal Amount — $16,129 federal credit in 2025
• Medical expenses — Amounts over 3% of net income
• Charitable donations — 15% on the first $200, 29% on amounts over $200
• Child care expenses — Claimable by lower-income spouse
• Union or professional dues
• Home office expenses (if working from home)
• Tuition credits
• Canada Caregiver Credit
• Disability Tax Credit

File before the deadline

Once you have completed your return, review it carefully before submitting. Tax software typically includes a review screen that flags potential errors. When filing via NETFILE, you will receive a confirmation number immediately — save it. If mailing a paper return, use registered mail and keep a copy for your records.

If you owe taxes, payment is due by April 30 even if you have until June 15 to file (for self-employed individuals). Late payments incur interest at the prescribed CRA rate.