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Fill in a TD1 form on your first day. Your employer takes income tax, CPP and EI off every paycheque, and you'll get a T4 slip by the end of February. File a return even with a small income, because you may get tax back.
On a first job in Canada you fill in a TD1 form on day one, your employer takes income tax, CPP and EI off every cheque, a T4 slip arrives by the end of February, and most people file by April 30. File even on a small income, because that is how withheld tax comes back.
Why is my first paycheque smaller than the offer?
Three things come off each cheque: income tax, CPP and EI. CPP and EI are percentages of your pay up to a yearly ceiling, so they don’t climb with your income the way income tax does. Use the take-home pay calculator to see your own split, or the income tax calculator for the full year.
Every person gets a basic personal amount, which is why a small income often pays little or no income tax. It’s $16,452 federally for most people in 2026. So a student who earns $12,000 over the summer owes no federal income tax on it, and any tax your employer held back can come back as a refund. CPP still applies, though, at 5.95% on the part above $3,500, which works out to about $505.75 on that $12,000 (8,500 x 0.0595).
What is the TD1 form, and do I have to fill it in?
The TD1 tells your employer which credits to count when it works out how much tax to take off. Your employer usually hands you one with the other new-hire papers, along with a request for your Social Insurance Number and bank details. Don’t skip it, because without it your employer may take more tax than you owe. The CRA keeps the current forms on its TD1 personal tax credits returns page, and our short note on the TD1 form covers the basics.
When do I get my T4, and when do I file?
Your employer sends a T4 slip by the end of February, and most people file by April 30. Filing even a small income can get tax back, so it’s usually worth doing, even when you think you earned too little. If you have never filed, start with filing your first tax return, then see the filing guide for the steps.
What do first-timers often get wrong?
Putting the wrong SIN on a form is common, and so is losing the T4 before tax time. Check the slip against your last pay stub, and tell your employer promptly if your address changes.
Where do I read more?
The guide to how income tax works explains the brackets. Come tax time, the tax calendar shows the dates, the document checklist shows what to gather, and the province index covers the rules where you live.
We’re an information site, not your preparer, and nothing here is advice for your own return. We don’t speak for the CRA either. If you’re unsure about a form or a slip, ask the CRA or a qualified preparer, and trust a CRA letter over this page if they ever differ.
Frequently asked questions
What is a TD1 form?
A form you give your employer so it knows which credits to use when it takes tax off your pay. The basic one is the federal TD1, and some provinces have their own.
Why is my paycheque smaller than I expected?
Your employer takes income tax, CPP and EI off each cheque. The take-home pay calculator shows the split.
Do I have to file a return if I earned very little?
Often it still helps. Filing can bring back tax that was taken off, and it builds the record that some credits and benefits rely on.
When will I get my T4?
Your employer must send it by the end of February for the year before.
How much can I earn on my first job before paying federal income tax?
For most people the federal basic personal amount is $16,452 in 2026, so income under that owes no federal income tax. CPP and EI still come off your pay, and your province has its own amount.