Moving to Canada is an exciting life change—but it also comes with important tax responsibilities. If you’ve recently become a resident of Canada, you are required to report your worldwide income and file an income tax return. Even if you didn’t earn any Canadian income during your first year, you may still benefit from filing.
This detailed guide explains everything new residents need to know about filing a Canadian tax return for the first time, including residency rules, required forms, deadlines, credits, deductions, and tips to avoid common mistakes.
1. Understanding Canadian Tax Residency
Your tax obligations in Canada depend on your residency status, not just immigration status. You’re generally considered a tax resident if you:
- Have established significant residential ties in Canada (e.g., home, spouse, dependents)
- Are physically present in Canada for 183 days or more in a calendar year
- Have social, personal, or economic ties like employment or provincial health coverage
Newcomers to Canada are usually deemed “resident for tax purposes” starting the day they arrive and establish ties.
2. When You Must File a Tax Return
You must file a tax return in Canada if:
- You owe tax to the Canada Revenue Agency (CRA)
- You want to claim a refund
- You want to receive benefits like the GST/HST credit or Canada Child Benefit
- You had income (even part-time, self-employment, or foreign income)
Even if your income was low or zero, filing can help you become eligible for benefits and establish your history with the CRA.
3. What Tax Year Are You Filing For?
Canada’s tax year runs from January 1 to December 31. You will file a return for the calendar year in which you became a resident, reporting income only from the date of entry forward. You may also need to declare your global assets for transparency.
4. Key Documents You’ll Need
Before filing, gather the following:
- Social Insurance Number (SIN): Required for all tax returns. Apply through Service Canada if you don’t have one.
- Income slips: T4 (employment), T5 (interest), T5007 (social assistance), foreign income statements, etc.
- Receipts: For moving expenses, tuition, rent, charitable donations, and medical expenses.
- Immigration details: Date of entry, family status, and country of previous residence.
5. Filing Your First Tax Return
You’ll use the T1 General form to file your tax return. You can file in several ways:
- NETFILE: Through certified tax software (like TurboTax, Wealthsimple Tax)
- PAPER: By mailing your completed forms to the correct CRA tax centre
- Tax preparers: Authorized representatives can file on your behalf
- CVITP: Free help through the Community Volunteer Income Tax Program (if eligible)
6. Forms and Schedules to Use
- T1 General: Main personal income tax return
- Schedule 1: Calculates federal tax
- Form RC66: For the Canada Child Benefit application
- Schedule D: For tuition and education credits (if applicable)
- Form T1135: To report foreign property over CAD $100,000 (if applicable)
- Form RC151: GST/HST Credit Application for individuals who are filing for the first time and haven’t filed a return
7. Important Tax Deadlines
For most individuals:
- Filing Deadline: April 30 of the following year
- Payment Deadline: Also April 30 (even if you file later, interest begins accruing)
If you or your spouse/common-law partner is self-employed, the deadline to file is June 15, but payment is still due April 30.
8. Tax Credits and Deductions for Newcomers
Here are some common tax breaks new residents can claim:
- Basic Personal Amount: Everyone can earn a portion of income tax-free (pro-rated based on arrival date)
- Tuition Tax Credit: For post-secondary students
- Medical Expense Credit: For out-of-pocket expenses exceeding 3% of income
- GST/HST Credit: A quarterly payment for low- and modest-income individuals
- Moving Expenses: If you moved to work or study in a qualifying program
- Charitable Donations: Donations to registered Canadian charities are deductible
9. Declaring Foreign Income and Property
As a new resident, you’re taxed on your worldwide income from the day you become a resident. You must declare:
- Foreign employment or business income
- Foreign investment earnings
- Ownership of foreign property (T1135, if over $100,000 CAD)
You may be eligible for foreign tax credits to avoid double taxation.
10. Registering for CRA My Account
CRA’s My Account service lets you manage your tax records online. After filing your first return, register for:
- Tracking refund status
- Viewing NOA (Notice of Assessment)
- Managing direct deposit
- Checking benefit eligibility
11. Avoiding Common Mistakes
New filers often make errors that delay their returns or reduce refunds. Avoid the following:
- Using the wrong tax year or version of tax software
- Forgetting to declare foreign income
- Missing receipts or T-slips
- Not applying for benefits like GST/HST Credit
- Filing too late or missing deadlines
12. What Happens After Filing?
After submitting your return:
- CRA processes it in 2–8 weeks
- You receive a Notice of Assessment (NOA) showing the final result
- Any refund will be issued by direct deposit or cheque
- Corrections can be made later if you missed something using CRA’s ReFile or Form T1-ADJ
13. Final Thoughts
Filing taxes in Canada for the first time can feel overwhelming, but understanding the process makes it manageable. Take your time, collect all documents, report your income honestly, and don’t miss out on credits and deductions that could benefit you.
As a new resident, this return marks the beginning of your tax journey with the CRA. It also helps unlock benefits, build your financial record, and demonstrate compliance for future immigration and citizenship applications.
If you’re unsure or your situation is complex (foreign income, rental properties, etc.), consider using a tax professional or CRA’s support services for assistance.
