
Your tax journey in Canada begins the day you arrive. The country treats newcomers as tax residents right from day one. You don’t have to wait for tax season to get your benefits. We’ll help you claim credits like the GST/HST before you file your first return.
The Canada Revenue Agency (CRA) needs your tax return to calculate your benefit eligibility, so file it even if you haven’t earned any income. These benefits include the Canada Child Benefit for families. Tax filing deadlines fall on April 30th, while self-employed individuals have until June 15th. We’ve put together this complete guide to help you understand your tax duties and get the most out of your benefits as a newcomer.
Let us walk you through all the essentials of your first Canadian tax return. You’ll learn how to figure out your residency status, report your worldwide income, and claim every benefit you deserve.
Understanding the Canadian Tax System for Newcomers

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The Canadian tax system looks complex at first. But once you grasp the basics, you’ll feel confident filing your first return. Your financial success in your new home depends on how well you understand the tax system.
How taxes work in Canada
The Canadian tax system lets you calculate and file your own taxes each year. Your tax obligations start when you establish strong ties to Canada, which usually happens right when you arrive. Your immigration status doesn’t matter – what counts is where you live.
Canadian residents must report their “worldwide income” from all sources, both inside and outside Canada. This rule applies from the day you become a resident.
You should know there’s no minimum income requirement to file taxes in Canada. Filing your return helps the Canada Revenue Agency (CRA) determine if you qualify for benefits that could give you money back.
The tax rate goes up as your income increases – this is called a progressive system. Your tax return includes your personal information, income details, deductions, and tax credits.
Federal vs. provincial tax responsibilities
Canadian income tax works at two levels: federal taxes go to the Canadian government, while provincial/territorial taxes go to where you live. The federal government sets its rates, and each province decides its own.
Your total tax combines both these rates. This creates what tax experts call your “average tax rate”.
The federal government collects both types of taxes everywhere except Quebec. This means most Canadians file just one return. Quebec works differently – residents there must file two separate returns: one for federal and another for provincial taxes.
Your province on December 31 determines which provincial rates apply for that year. This timing matters if you plan to move between provinces.
Alberta stands out with its simple 10% flat tax rate, whatever your income level. Other provinces use rates that increase with income.
Key tax terms every newcomer should know
These terms will help you understand the Canadian tax system better:
- Social Insurance Number (SIN): A nine-digit number you need to file taxes and use government programs
- T4 slip: Your employer’s document showing your yearly pay and deductions
- Notice of Assessment (NOA): The CRA’s response to your tax filing that shows if you get money back or need to pay
- Taxable income: What’s left of your income after all deductions and credits
- Tax credits: These lower your tax bill and come in two types – refundable (you get them no matter what) and non-refundable (you need income to claim them)
- Tax deductions: These lower your taxable income and might put you in a lower tax bracket
- GST/HST credit: Money paid every three months to help people with lower incomes handle sales tax
- Canada Carbon Rebate: Quarterly payments that help offset federal pollution pricing costs
- Canada Child Benefit: Monthly support for families with kids under 18
- Tax treaties: Agreements that stop you from paying taxes twice in different countries
- Form T1135: You need this if you own foreign property worth more than CAD $100,000
These basics lay the groundwork for understanding your tax residency status, which we’ll explore next.
Determining Your Tax Residency Status
“Your residency status in Canada may change from year to year. It can depend on the length and reason for your stay, if you leave temporarily or permanently, or if you live outside of Canada for part of the year.” — Canada Revenue Agency, Government of Canada, official tax authority
Canadian tax obligations depend on your residency status – which differs from your immigration status. The Canadian tax system looks at where you build your life rather than your citizenship. Before filing taxes for the first time in Canada, you need to know your tax residency status.
What makes you a tax resident in Canada
The Canada Revenue Agency (CRA) determines your tax residency based on your “residential ties” to Canada. These ties fall into two categories:
Significant residential ties include:
- A home in Canada
- A spouse or common-law partner in Canada
- Dependants in Canada
Your residency status gets additional support from secondary ties like bank accounts, personal property, social memberships, driver’s licenses, and health insurance in a Canadian province. The CRA wants to see if Canada is where you “regularly, normally, or customarily live”.
Many newcomers think citizenship or immigration status determines their tax obligations. The reality is that residential connections matter most. A temporary worker could be a tax resident after establishing strong ties.
Tax authorities will see you as a tax resident if you’ve been legally admitted to Canada as a permanent or temporary resident (worker or student) and built significant residential ties.
Not sure about your status? Fill out Form NR74 (Determination of Residency Status) and the CRA will give you an official answer.
How your arrival date affects your first tax return
Your tax residency usually starts the day you establish significant residential ties to Canada – often your arrival date. This date matters because you’ll need to report worldwide income from that day forward.
Let’s say you arrived and established residency on June 1st. Your first tax return must show all income from both inside and outside Canada from June 1st to December 31st. Income before your arrival usually isn’t subject to Canadian tax.
The CRA also checks if you stayed in Canada for 183 days or more in the calendar year. This could make you a “deemed resident” even without significant residential ties, which affects your taxes.
Count each full or partial day in Canada toward these 183 days. This includes time at a Canadian university, working days, and vacations. US residents who commute to work in Canada don’t need to count their commuting days.
Temporary vs. permanent residency tax implications
Immigration status – temporary or permanent – doesn’t directly affect your tax obligations. Your residential ties’ strength and nature determine if you’re a:
Factual resident: You have enough residential ties to Canada, even during temporary absences. Factual residents must report worldwide income for their resident period and can claim all applicable deductions and credits.
Deemed resident: You stayed in Canada for 183 days or more without significant residential ties. You must report worldwide income for the entire year and pay federal tax plus a federal surtax instead of provincial/territorial tax.
Non-resident: You haven’t established significant residential ties and stayed less than 183 days in Canada. You’ll pay tax only on Canadian-source income.
Key points for temporary residents:
- You’re typically a factual resident if you’re here temporarily for work, school, or vacation but have significant residential ties.
- Immigration permanent residency doesn’t automatically make you a tax resident – your actual ties to Canada determine this.
- Strong residential ties to both Canada and another country? Tax treaties might decide which country has primary taxation rights.
Newcomers can receive benefit and credit payments right after arriving in Canada, even before filing their first tax return. You’ll need to file returns every year to keep getting these benefits, even without income.
Essential First Steps Before Filing Taxes

A few practical preparations will substantially simplify your first Canadian tax filing experience. These initial steps are the foundations of your identity in the Canadian tax system and make future dealings with tax authorities easier.
Getting your Social Insurance Number (SIN)
Your Social Insurance Number (SIN) works as your tax ID in Canada and opens the door to the Canadian tax system. You need this unique nine-digit number to file taxes, get government benefits, and access various programs.
You can apply for a SIN in three ways:
- Online application through the Service Canada website
- In-person visit to a Service Canada Center
- Mail application (using form NAS2120)
The best part? Getting your SIN is completely free.
You’ll need specific documents based on your status to apply:
If you have permanent residency:
- Your Permanent Resident card or Confirmation of Permanent Residence
If you have temporary residency (workers/students):
- Valid work permit or study permit with authorization to work
Note that temporary residents receive a SIN starting with “9” that expires with their immigration document. You must update your SIN record whenever you get new immigration documents.
Your SIN information needs careful protection. While you must provide it for tax information slips, treat it as confidential personal data. A CAD 139.34 penalty applies if you don’t provide your SIN when legally required.
Setting up your CRA My Account
The CRA My Account provides a secure online portal to view and manage your taxes. You can only register after filing your first tax return and receiving your Notice of Assessment (NOA).
After getting your NOA, you have two registration options:
- Sign-in Partner method:
- Use your banking credentials from participating financial institutions
- Enter your SIN, date of birth, postal code, and an amount from your tax return
- Get a CRA security code by mail within 10 business days
- CRA user ID and password method:
- Create a unique CRA user ID and password
- Set up security questions
- Get a CRA security code by mail to complete registration
Multi-factor authentication became mandatory for CRA My Account access in October 2021.
My Account lets you:
- Check your tax return status and notices of assessment
- Download information slips
- Manage direct deposit details
- Change your personal information
- Apply for benefits and credits
- Get CRA communications electronically
Organizing your pre-arrival financial information
Taking stock of your financial situation is vital before filing your first Canadian tax return, especially with assets you owned upon arrival.
Document these details on your arrival day:
- Market value of all your assets
- Income earned before Canada
- Income from all sources after becoming a resident
This information matters because it:
- Sets your entry value for foreign property (needed for future capital gains calculations)
- Determines if you need extra forms for foreign property worth over CAD 100,000
- Affects your eligibility for certain tax credits
You can start receiving benefits before filing your first return by completing form RC151 (GST/HST Credit Application for Individuals Who Become Residents of Canada). Parents should also submit form RC66 (Canada Child Benefit Application) with schedule RC66SCH.
Your pre-arrival income isn’t taxable in Canada, but the CRA needs this information to calculate certain tax credits. Getting these documents organized early makes your first filing exceptionally smooth.
Gathering Required Documents for Your First Tax Return
Your success with Canadian tax filing depends on having the right documents ready. Good preparation helps you avoid delays and get the most from credits and deductions on your first Canadian tax return.
Income slips and what they mean (T4, T5, etc.)
Income slips show official records of your earnings throughout the tax year. Employers, banks, and government agencies issue these documents that are the foundations of your tax return.
You’ll get most tax slips by February end, though some might come later. Here are the common ones:
- T4: Shows employment income, including salary, wages, and payroll deductions. Box 14 shows your total employment income, while Boxes 16, 18, and 22 show your CPP contributions, EI premiums, and income tax deducted.
- T4A: Shows pension income, scholarships, RESP payments, or self-employment commissions. Students should look out for this slip that documents scholarship and bursary income.
- T4E: Lists Employment Insurance benefits you got during the tax year.
- T5: Shows investment income like bank interest, dividends from Canadian corporations, or other investment payments.
- T3: Shows income from trusts or mutual fund investments.
- T5008: Lists securities transactions if you sold investments during the tax year.
Your CRA My Account gives you access to most of these slips once it’s set up. Many banks also provide electronic versions through their online portals. Check any electronic versions against your last pay stub to make sure everything matches up.
Tracking foreign income documentation
New residents must report worldwide income earned after becoming Canadian residents. This covers employment, self-employment, pensions, investments, and rental income from outside Canada.
Here’s how to document foreign income:
- Change all amounts to Canadian dollars using the exchange rate from when you got the income. The CRA accepts Bank of Canada rates or other reliable sources.
- Save copies of all foreign payment documents, especially if your home country’s tax year is different from Canada’s January-to-December calendar.
- Keep proof of any foreign tax you’ve paid – you might qualify for foreign tax credits to avoid paying twice. You may need Form T2209 (Federal Foreign Tax Credits).
The CRA requires Form T1135 (Foreign Income Verification Statement) if you own foreign property worth more than CAD 139,336.02. This covers foreign bank accounts, investments, real estate, and certain other assets.
Submit both original and certified English or French translations for documents in other languages. Only authorized professionals like notaries, certified translators, or embassy officials can provide these translations.
Receipts and records you need to keep
Beyond income slips, keep these important tax documents:
- RRSP contribution receipts: Available by March for early-year contributions, or right away for others.
- Medical expense receipts: Save everything from medical services to prescriptions and treatments.
- Tuition receipts: Form T2202 shows your tuition fees and enrollment months.
- Charitable donation receipts: You’ll need these to claim tax credits.
- Home office expenses: If you work from home, keep related receipts and Form T2200 from your employer.
Original copies of all tax documents are vital since the CRA might ask for them. Keep these records for six years after filing. The CRA could review them during this time.
Electronic filing doesn’t require you to send in receipts with your return. Keep them handy in case the CRA wants to check. Your notice of assessment needs permanent storage since it has important information for future returns.
Step-by-Step Guide to Filing Your First Tax Return

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Now that you’ve got your documents in order, let’s look at how to file your taxes in Canada. Your choice of filing method can affect both how complex the process is and how quickly you get your refund.
Choosing between paper filing and electronic filing
You can submit your tax return in Canada through two main methods: paper filing and electronic filing. Each method works better for different situations.
Paper filing means you’ll need to fill out a physical T1 General Income Tax and Benefit Return form. First-time filers can mail their return to the Canada Revenue Agency (CRA). The downside? It takes up to 8 weeks to process paper returns filed on time.
Electronic filing through NETFILE lets you submit your return straight to the CRA using certified tax software. This method usually takes 2 weeks and you might get your refund in just 8 business days. On top of that, for the 2024 tax year, you’ll need an Access code to use NETFILE. The CRA gives you this code after you enter your name, date of birth, and SIN.
It’s interesting to note that 90% of Canadians now file their taxes online, which shows how comfortable people are with electronic filing.
Using tax software for first-time filers
Tax software makes filing much easier for newcomers to Canada. The CRA certifies several tax software programs each year for electronic filing through NETFILE.
Here’s what to think over when picking software:
- Cost: Many programs are completely free, while others let you pay what you want
- Complexity handling: Make sure the software works for your specific needs (rental income, self-employment, etc.)
- User-friendliness: Look for programs that guide you instead of making you pick specific tax forms
NETFILE-certified options like TurboTax, Wealthsimple Tax, and UFile are popular choices. You can try TurboTax and Wealthsimple for free to see which accessible interface suits you better.
Most tax software looks for ways to save you money and includes features like auto-fill that pulls your tax slips directly from the CRA.
When to ask for professional tax help
While filing taxes yourself is easier than ever, some situations need professional help:
People with modest income and simple taxes can use the Community Volunteer Income Tax Program (CVITP). These free tax clinics run across Canada. They’re open year-round but you’ll find more options between March and April.
The free clinics work in different ways:
- Walk-in clinics (first-come, first-served)
- Drop-off services where you leave documents and return later
- Appointment-based options (both in-person and virtual)
Complex situations like self-employment, investment income, or big life changes might need professional tax services. Tax professionals keep up with tax laws and spot deductions you might miss, which could make their fee worth it.
Your first tax return sets the foundation for all future filings. This makes accuracy extra important as you start your financial life in Canada.
Understanding Tax Credits and Benefits for Newcomers

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“The Canada Revenue Agency (CRA) offers financial support through various benefits, credits, and programs.” — Canada Revenue Agency, Government of Canada, official tax authority
Filing taxes in Canada helps you access valuable benefits that support newcomers financially. Your household budget can improve when you understand the benefits you qualify for as a first-time filer.
GST/HST credit and Canada Carbon Rebate
The GST/HST credit provides quarterly tax-free payments to help with sales taxes if you have low or modest income. You can apply right away as a newcomer without waiting for your first tax return. Just complete Form RC151 (GST/HST Credit Application for Individuals Who Become Residents of Canada).
The Canada Carbon Rebate (formerly the Climate Action Incentive payment) helps offset federal pollution pricing costs. Residents of Alberta, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, and Saskatchewan receive quarterly payments. Rural residents get 20% more than urban dwellers because of higher energy costs and limited public transportation options.
Canada Child Benefit for newcomer families
The Canada Child Benefit (CCB) gives tax-free monthly payments to families with children under 18. Eligible families can receive up to $863.53 monthly per child under 6, and $728.60 for each child aged 6-17 during 2024-2025. This is a big deal as it means that families earning $50,860.43 can increase their annual income by 18-20%.
Newcomers with children need to submit Form RC66 (Canada Child Benefits Application) and Form RC66SCH (Status in Canada and Income Information). Permanent residents must provide birth proof for each child on the application.
Provincial and territorial benefits you may qualify for
Your CCB application automatically registers you for several provincial and territorial benefits. These include:
- Alberta child and family benefit
- BC family benefit
- New Brunswick child tax benefit
- Newfoundland and Labrador child benefit
- Northwest Territories child benefit
- Nova Scotia child benefit
- Nunavut child benefit
- Ontario child benefit
- Prince Edward Island child benefit
- Yukon child benefit
Regular tax filing keeps you eligible for these benefits that make your financial transition to Canadian life easier.
Reporting Foreign Income and Assets Correctly
Moving to Canada doesn’t mean you have to cut financial ties with your home country. Tax compliance and penalty avoidance depend on your ability to report foreign income and assets as a newcomer.
What foreign income must be declared
Canadian residents must report their worldwide income on tax returns. This applies to all income sources, whatever their origin. Here’s what you need to report:
- Employment income from foreign employers
- Investment income from abroad
- Rental income from properties outside Canada
- Foreign pension payments
- Self-employment income earned internationally
You’ll need to convert all amounts to Canadian dollars. The CRA accepts the Bank of Canada exchange rate or other verifiable sources that are accessible to more people. You can use the annual average exchange rate to calculate income received throughout the year.
Your tax return must include foreign income even if it falls below the CAD 139,336.02 reporting threshold for the T1135 form. The threshold only determines if you need to file additional forms, not your income’s taxability in Canada.
Form T1135 for foreign property over $100,000
You must file a Foreign Income Verification Statement (Form T1135) if your specified foreign property’s total cost exceeds CAD 139,336.02 during the tax year. Your foreign property includes:
- Foreign bank accounts
- Shares in non-resident corporations
- Real estate outside Canada (except personal-use property)
- Funds held outside Canada
- Debts owed by non-residents
- Interests in foreign trusts
The form offers two reporting methods: Part A (simplification) for property valued between CAD 139,336.02 and CAD 348,340.05, and Part B (detailed) for property worth CAD 348,340.05 or more.
Late T1135 filing results in steep penalties. You’ll pay CAD 34.83 per day (minimum CAD 139.34) up to CAD 3,483.40. The CRA can extend the reassessment period by three years for unreported foreign income.
Avoiding double taxation through tax treaties
Canada’s tax treaties with almost 100 nations prevent double taxation of the same income. These agreements specify which country gets primary taxation rights for cross-border financial situations.
Form T2209 lets you claim a federal foreign tax credit for taxes paid in your home country. This credit reduces your Canadian tax liability but cannot exceed your Canadian tax payable on that foreign income.
Tax treaties contain tie-breaker rules that determine your tax residency when you have strong ties to multiple countries. The basic rules for foreign tax credits stay consistent across different countries.
Submit both original documents and certified translations for anything not in English or French to ensure smooth processing.
What Happens After You File Your First Tax Return
Your first tax return submission marks the beginning of a waiting period. A good grasp of the next steps will help you manage your finances better as a new Canadian resident.
Understanding your Notice of Assessment
The Canada Revenue Agency (CRA) will send you a Notice of Assessment (NOA) after processing your tax return. This vital document confirms your submission’s processing status. Your NOA has several sections:
Account summary – The result of your assessed tax return shows either a refund, zero balance, or amount owing. This also covers any outstanding balances from previous returns.
Tax assessment summary – A breakdown of the main lines on your assessed return and the amounts used to calculate your balance.
Explanation of changes – Any adjustments the CRA made to your return based on your provided information or their records.
Your NOA might also show program-specific information such as Home Buyers’ Plan statements or Lifelong Learning Plan details when applicable.
Receiving your tax refund
Your refund arrival time varies based on how you filed:
- Electronic submissions: typically within 2 weeks
- Paper returns: up to 8 weeks
- Non-resident returns: up to 16 weeks
Direct deposit users will get their refund automatically in their bank account. Others will receive a check by mail.
Sometimes your payment might not appear on your notice if you made it close to your filing date. These payments take up to 10 business days to show up in the CRA system. You can check your payment status through My Account or call the Individual Tax Account Balance Automated Service.
Making corrections if you made mistakes
If you spot an error on your return, wait for your NOA from the CRA before requesting changes. You can make corrections through:
- My Account: The “Change my Return” feature online works fastest, with processing in about two weeks
- ReFILE: Electronic filers can use this service through their original tax software
- Mail: Send form T1-ADJ or a letter to your tax center, which takes about eight weeks
Complex adjustments might need up to 20 weeks. The CRA will send you a Notice of Reassessment showing any changes to your return.
Note that keeping your Notice of Assessment is essential. You’ll need this information for future tax returns and to access CRA’s My Account.
Conclusion
Tax filing in Canada might look complex for newcomers, but a step-by-step approach makes everything clearer. Your journey starts with determining residency status, collecting documents, and learning about available benefits to build a strong financial foundation in your new country.
Proper tax filing gives you access to valuable benefits like the GST/HST credit, Canada Carbon Rebate, and Canada Child Benefit. These programs can substantially support your household budget during your settlement in Canada.
First-time tax filing becomes easier with professional guidance. BOMCAS Canada helps you file your tax returns accurately from day one. Their team’s knowledge ensures you get maximum credits while avoiding delays that could affect your benefits.
Your Notice of Assessment arrives after submitting the return – keep this document safe as it’s a vital part of future filings and CRA’s online services. If you find any errors, you can request adjustments through CRA My Account or paper submissions.
The Canadian tax system recognizes newcomers’ unique challenges. Learning the system takes time, so don’t hesitate to ask questions and keep detailed records. A well-handled first tax return builds your confidence and helps secure your financial future in Canada.
FAQs
Q1. When should I file my first tax return as a newcomer to Canada? You should file your first Canadian tax return in the year following your arrival. For example, if you became a resident for tax purposes in 2024, you would file your first return by April 30, 2025.
Q2. What documents do I need to file my first Canadian tax return? You’ll need your Social Insurance Number (SIN), income slips (like T4s), receipts for deductions and credits, and documentation of any foreign income. Also gather records of your assets’ value on the day you arrived in Canada.
Q3. Can I receive benefits before filing my first tax return in Canada? Yes, you can start receiving certain benefits upon arrival, even before filing your first return. Complete Form RC151 for the GST/HST credit and Form RC66 for the Canada Child Benefit if you have children.
Q4. How do I report foreign income on my Canadian tax return? You must report all worldwide income earned after becoming a Canadian resident. Convert amounts to Canadian dollars using the appropriate exchange rate. If you own foreign property worth over CAD 100,000, you’ll need to file an additional Form T1135.
Q5. What happens after I file my first Canadian tax return? After filing, you’ll receive a Notice of Assessment (NOA) from the Canada Revenue Agency. This document confirms your tax assessment and may show a refund, balance owing, or zero balance. Keep this NOA as it contains important information for future filings.