How to file your first Canadian tax return as a newcomer

Step by step

The 6 steps, in order

1. 01

   Determine your residency for tax purposes

   The CRA considers you a 'tax resident' from the day you establish significant residential ties in Canada — usually the day you sign a long-term lease, register for MSP, or get a Canadian driver's licence. The exact date matters because you only pay Canadian tax on worldwide income from your residency date forward; before that date, your home-country income is not Canadian-taxable.

   Write down your residency date (usually the date you arrived with intent to stay). Use Form NR74 (Determination of Residency Status) if your case is complex — international student arriving in summer, returning Canadian, dual-residence with family in two countries.

   Source:VanCityGuide research· 2026
2. 02

   Get your documents together

   You need your SIN (or, if not yet issued, an Individual Tax Number — apply via Form T1261), your T4 slips from any Canadian employer (issued by end of February), and any T-slips for Canadian investment income (T5 from banks, T3 from mutual funds). For your residency-period worldwide income: pay slips, foreign rental statements, foreign investment statements.

   Also useful: receipts for medical expenses, childcare expenses, public transit (no longer deductible federally but BC has some), tuition fees (T2202 from your school), and donations to registered Canadian charities. The CRA accepts digital scans for most receipts but keep originals for 6 years in case of audit.

3. 03

   Choose how to file

   Most newcomers should use NETFILE-certified tax software — TurboTax, Wealthsimple Tax (free), H&R Block Online, UFile. Wealthsimple Tax is free with no income cap and handles most newcomer cases including foreign income reporting. NETFILE software submits your return directly to the CRA and you get your assessment within 2 weeks.

   For your first year specifically, the CRA also has a free in-person filing service called the Community Volunteer Income Tax Program (CVITP) for low-income newcomers — free help from a trained volunteer at libraries, community centres, and settlement agencies across Greater Vancouver during March and April.

   Source:VanCityGuide research· 2026
4. 04

   Report your worldwide income from your residency date

   From the day you became a Canadian tax resident, you owe Canadian tax on all your income — Canadian wages, foreign wages still being paid, foreign rental income, foreign investment income, even small amounts. Most newcomers panic at this but two things mitigate: (1) the basic personal amount means the first ~$15,700 (federal) and ~$11,500 (BC) of total income is tax-free, and (2) Canada has tax treaties with most countries so you avoid double-taxation by claiming foreign tax credits.

   If you owned property in your home country and earned rental income before arriving, that income from before your residency date is not Canadian-taxable. Income from after your residency date is — and you must include it.

5. 05

   Claim your benefits and credits

   Most newcomers miss credits they're entitled to. The big ones: GST/HST Credit (auto-calculated when you file, ~$520/year for a single adult on lower income), BC Climate Action Tax Credit (auto-calculated, ~$447/year for an adult), Canada Child Benefit (CCB — apply via Form RC66 if you have kids under 18), Canada Workers Benefit (refundable credit for low-to-moderate earners), and tuition credits if you were a student.

   For CCB specifically: if you have kids and didn't apply via the form, you might be missing $200-600 per child per month. Apply retroactively — the CRA will pay up to 11 months of back-benefits.

6. 06

   File before April 30 (or June 15 if self-employed)

   Returns are due April 30 of the year after the tax year. If you're self-employed, the deadline extends to June 15 — but interest on any tax owed still starts accruing April 30. If you owe nothing, there's no penalty for filing late, but you delay the GST credit, climate credit, and CCB payments until you do file.

   First-year newcomers usually get a refund (because withholding overestimated your tax), so file as early as possible after February 28 (when T4s are mailed) to get the refund in your bank account within 2 weeks of NETFILE submission.