← Guides / Canada

Canada Newcomer Tax Guide (Immigration, Tax Residency)

the Canadian tax system for the newcomers (the immigrants, the permanent residents, the temporary residents, the returning residents). The Social Insurance Number (SIN) is the first step — the SIN is required for the employment, the bank account, the tax return, and the benefit applications. The tax residency starts on the "date of arrival" in Canada (the day the immigrant arrives in Canada to establish the residence). The first Canadian tax return must report the worldwide income from the date of arrival to December 31 of the arrival year (the "pro-rated" tax return). The foreign income (the interest, the dividends, the rental income, the employment income earned before the arrival) is NOT taxable in Canada (the income earned before the date of arrival is not subject to the Canadian tax). The foreign tax credits (FTCs) can be claimed for the taxes paid to the foreign country on the foreign-source income (the income earned after the date of arrival). The T1135 (the "Foreign Income Verification Statement") must be filed if the total foreign property (the foreign bank accounts, the foreign stocks, the foreign real estate) exceeds $100,000 CAD at any time in the year. The GST/HST credit and the CCB applications (the Form RC66) must be filed separately for the newcomers who have not filed the Canadian tax return. The RRSP and the TFSA are available to the Canadian residents aged 18+ with the valid SIN — the RRSP room starts from the first year of the Canadian residence (the "RRSP room for the newcomers" — the room is calculated as 18% of the Canadian earned income). The US-Canada cross-border rules — the US citizens and the US green card holders living in Canada must file both the US and the Canadian tax returns.

First Steps for the Newcomers

• Social Insurance Number (SIN): The 9-digit number required for the employment, the tax return, the bank account, and the benefit applications. The SIN application is made at the Service Canada office (or by mail). The permanent residents receive the SIN starting with "9" (the temporary SIN).
• Bank account: The Canadian bank account (the "chequing account" and the "savings account") is required for the direct deposit of the salary, the benefits (the CCB, the GST/HST credit, the CAIP), and the tax refund.
• Date of arrival: The tax residency starts on the date the immigrant arrives in Canada to establish the residence (the "date of the first landing" for the permanent residents). The CRA uses the "significant residential ties" test to determine the residency start date.
• CRA My Account: The online portal for the tax returns, the NOA, the benefit payments, the RRSP/TFSA limits, and the payment history. The newcomer must register for the CRA My Account after filing the first tax return.

First Tax Return

• Worldwide income: The newcomer must report the worldwide income from the date of arrival to December 31 of the arrival year. The income earned before the date of arrival is NOT taxable in Canada (the "pre-arrival income" is excluded).
• Tax return deadline: April 30 of the following year (June 15 for the self-employed). The newcomer who arrives in Canada in 2025 must file the 2025 tax return by April 30, 2026.
• Foreign tax credits: The taxes paid to the foreign country on the foreign-source income (the income earned after the date of arrival) can be claimed as the foreign tax credits (the FTCs). The FTCs are claimed on the Form T2209 (the "Federal Foreign Tax Credits").
• T1135 (Foreign Property Reporting): The newcomer must file the T1135 if the total foreign property (the foreign bank accounts, the foreign stocks, the foreign real estate, the foreign pensions) exceeds $100,000 CAD at any time in the year. The T1135 is filed separately from the tax return (the "foreign income verification").
• RRSP room: The RRSP room for the newcomer starts at 18% of the Canadian earned income in the first year. The unused room from the prior years (before the Canadian residence) is NOT available.
• TFSA room: The TFSA room accumulates from the year the newcomer turns 18 AND becomes the Canadian resident. The prior TFSA room (before the Canadian residence) is NOT available.

Benefit Applications

• GST/HST credit: The Form RC66 (the "Canada Child Benefits Application") must be filed to apply for the GST/HST credit. The newcomer should apply as soon as possible after the arrival (the GST/HST credit is paid from the month of the application).
• CCB (Canada Child Benefit): The same Form RC66 is used for the CCB application. The CCB is paid from the month of the birth (if the application is made within 11 months of the birth) or from the month of the arrival (for the newcomers).
• CAIP (Climate Action Incentive): The CAIP is automatically paid to the eligible newcomers who file the tax return. The newcomer in the backstop province receives the CAIP from the quarter of the arrival.

For the departure tax and the leaving Canada rules, see our Leaving Canada Guide →. For the non-resident taxation and the Part XIII withholding, see our Non-Resident Taxation Guide →.