Moving to Canada is a big step. Along with a new home, new neighbours, and a new life, comes a new tax system — one that's quite different from what most newcomers are used to. The good news is that Canada's tax system is designed to support you, and filing your first return can unlock benefits and credits you may not even know you're entitled to.

Do Newcomers to Canada Need to File a Tax Return?

Yes — if you were a Canadian resident for any part of 2025, you are required to file a T1 income tax return. This applies whether you arrived in January or December, whether you worked in Canada or not, and whether you are a permanent resident, a newcomer on a work permit, or an international student.

Even if you had no Canadian income, filing a tax return is important because it establishes your residency status with the CRA and makes you eligible for valuable government benefits.

Benefits and Credits Available to Newcomers

Here are the key benefits you may be entitled to as a newcomer to Canada:

What You Need Before You File

Gather the following documents before starting your first Canadian tax return:

Required for Everyone

• Social Insurance Number (SIN) — your 9-digit number from Service Canada
• Date of arrival in Canada — the exact date you became a Canadian resident
• Your world income — income earned anywhere in the world before you arrived in Canada may need to be reported
• Banking information — for direct deposit of any refund or benefits

If You Worked in Canada

• T4 slip — from every Canadian employer you worked for in 2025
• T4E — if you received Employment Insurance (EI) benefits

If You Have Children

• Children's names, dates of birth, and SINs (if they have them)
• Childcare receipts from any licensed daycare or childcare provider

If You Were a Student

• T2202 — Tuition and Enrolment Certificate from your Canadian school
• Study permit details

Understanding Your First Canadian Tax Return — Key Concepts

The Tax Year

Canada's tax year runs from January 1 to December 31. Your first return will cover the period from your date of arrival to December 31, 2025. You are only taxed on Canadian income from the date you became a resident — not for the full year if you arrived partway through.

Residency Status

Your tax obligations in Canada depend on your residency status for tax purposes — which is separate from your immigration status. Most newcomers on work permits and permanent residents are considered Canadian tax residents from the date they arrive. This means you report your worldwide income from that date, but you're also entitled to all Canadian deductions and credits.

World Income Reporting

As a Canadian tax resident, you are required to report income earned anywhere in the world from the date you arrived. This doesn't necessarily mean you pay Canadian tax on all of it — Canada has tax treaties with many countries to prevent double taxation — but it must be declared.

Step-by-Step: How to File Your First Canadian Return

1. Get your SIN — If you don't have one yet, apply at a Service Canada location. You need a SIN to file taxes and access CRA services
2. Gather your documents — T4 slips, your arrival date, and any other income or benefit documents (see list above)
3. Set up CRA My Account — Register at canada.ca/my-account to view your tax information, apply for benefits, and authorize a representative
4. Authorize your tax preparer — If you're working with PC Tax Solutions, grant us access through the CRA Represent a Client portal so we can file on your behalf
5. File by April 30, 2026 — This is the deadline for most individuals. Your return covers your 2025 income

Common Questions from Newcomers

I arrived in Canada in October 2025. Do I really need to file?

Yes — even if you only lived in Canada for a few months of 2025, you are required to file a T1 return covering that period. And it's very much worth it — you may be entitled to GST/HST credits and other benefits even for a partial year of residency.

I'm on a work permit — am I a Canadian tax resident?

Most people on work permits are considered Canadian tax residents from the date they arrive, as long as they have significant residential ties to Canada (a home, a spouse or partner, personal belongings). If you're unsure of your status, a tax professional can help you determine this before you file.

What about income I earned in my home country before coming to Canada?

Income earned before your arrival date in Canada is generally not taxable in Canada. However, you may need to report certain foreign assets if their total value exceeds $100,000 CAD. Income earned anywhere in the world after your arrival date must be reported.

Do I need to file in my home country as well?

This depends on your home country's tax laws. Many countries require citizens living abroad to file a return. Canada has tax treaties with many countries to prevent you from being taxed twice on the same income. We recommend speaking with a tax professional who understands both Canadian and your home country's tax obligations — especially for US citizens living in Canada, which involves its own complex rules.

I'm an international student. Do I have to pay taxes?

If you earned any income in Canada (from a part-time job, scholarship, bursary, or research stipend), you should file a Canadian tax return. International students who pay tuition at a Canadian school can claim the Tuition Tax Credit, which can be worth a significant amount — and unused credits can be carried forward to future years or transferred to a supporting parent.