# First job: what changes for your taxes

> What changes for your taxes when you start your first job in Canada: the TD1 form, payroll deductions, the T4 slip and why you should still file

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](https://tax-services.ca/calculators/payroll-salary/take-home-pay-calculator) to see your own split, or the [income tax calculator](https://tax-services.ca/calculators/income-tax/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](https://www.canada.ca/en/revenue-agency/services/forms-publications/td1-personal-tax-credits-returns.html), and our short note on the [TD1 form](https://tax-services.ca/articles/td1-canada) 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](https://tax-services.ca/first-time-tax-return-canada), then see the [filing guide](https://tax-services.ca/guides/file-your-taxes) 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](https://tax-services.ca/guides/how-canadian-taxes-work) explains the brackets. Come tax time, the [tax calendar](https://tax-services.ca/tax-calendar) shows the dates, the [document checklist](https://tax-services.ca/checklists/documents-for-your-tax-return) shows what to gather, and the [province index](https://tax-services.ca/provinces) 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.

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Source: https://tax-services.ca/life-events/first-job
Last updated: 2026-10-08
Independent information site. Not affiliated with the CRA. No services, no guarantee of accuracy. See https://tax-services.ca/disclaimer