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You become a Canadian tax resident when you settle here, and from then on you're taxed on your income from all over the world. File by April 30, apply for the GST/HST credit and child benefit, and report foreign property over $100,000.
Tax residency in Canada depends on your ties to the country, usually starting on the day you arrive to settle. From that date you are taxed on income from all over the world, and you file your first return by April 30 of the following year. Before that date you owe tax only on Canadian income.
When do I become a tax resident of Canada?
Tax residency here depends on your ties to Canada, not your visa or your passport. A home, a spouse or children who live with you, and your belongings all count. Smaller ties, like a bank account, a driver’s licence or provincial health coverage, add weight too. Most people who arrive to settle become residents on their arrival date. If you’re unsure, the CRA has a form to ask for its opinion. The CRA’s page for newcomers lists the ties it looks at, and our article on Canadian tax residency goes further.
From that date you’re taxed on your income from all over the world. Before it, you only owe tax on Canadian income.
What does my first Canadian tax return look like?
You file by April 30 of the next year, like everyone else. You’ll need a Social Insurance Number, and your slips from the months you worked here. Income earned abroad after your arrival goes on the return too, converted into Canadian dollars with an exchange rate. The rates page shows today’s Bank of Canada figures, but for a past date you’ll want the rate on that day. The CRA’s newcomer page says to use the Bank of Canada rate in effect on the date you received the income.
You may also be able to claim a credit for tax you already paid to another country, so you aren’t taxed twice on the same money (see the foreign tax credit). Some credits are prorated for the part of the year you lived here. The CRA’s guide for newcomers explains each one, so you don’t have to guess. For the part-year mechanics, read your first year in Canada and the part-year return.
Which benefits can a newcomer apply for?
New residents can apply for the GST/HST credit and, with children, the Canada Child Benefit, using their own forms, even before filing a first return. Both are worked out from your tax return, so even a year with no income is worth filing. The Canada Child Benefit is tax-free. Estimate them with the GST/HST credit calculator and the child benefit calculator.
Does foreign property or a TFSA change anything?
TFSA room starts building from the year you become a resident and turn 18, so years you spent abroad don’t add room. Try the TFSA calculator once you’re settled. If the cost of your foreign property, such as a bank account or shares held outside Canada, was over $100,000 at any time, you must file an extra form. A few bucks in an overseas chequing account won’t trigger it, but a house or a pile of shares back home might, so check before the deadline. The article on foreign property reporting has more.
What mistakes do newcomers make most?
Skipping the first return because there was little income is the big one, since it can delay benefits. Another is using today’s exchange rate for old income. Keep your arrival date, your foreign slips and a note of the rates you used, and the next year gets much easier.
Where do I start?
Learn the basics in the guide to how Canadian taxes work, work out your pay with the take-home pay calculator, then read the filing guide. Our newcomer checklist lists the first forms in order, the document checklist covers what to gather, and the tax calendar and province index fill in dates and local rules.
This page is a general overview and can’t see your status, your slips or your province, so it isn’t advice for your own return. We offer information only, we don’t prepare returns, and we don’t represent the CRA. A qualified preparer or the CRA can confirm your details, and a CRA letter wins over anything written here.
Frequently asked questions
When do I become a tax resident?
When you establish significant ties to Canada, such as a home, a spouse or dependants, and your belongings here. For most people that is the day they arrive to settle.
Do I report income from before I arrived?
Not as Canadian income. Once you are a resident you are taxed on your world income from that date, and you report it in Canadian dollars.
Should I file even if I had no income?
Usually yes. Filing is what lets the CRA work out benefits like the Canada Child Benefit and the GST/HST credit.
Do I need to report foreign property?
If the total cost of your specified foreign property was more than $100,000 at any time in the year, you file a separate form with your return.
Which exchange rate do I use for income earned abroad?
Convert foreign income into Canadian dollars using the Bank of Canada rate in effect on the date you received it, as the CRA's newcomer page says. Keep a note of the rates you used.