Taxes in your first year

Work permit holders working in Canada must file and pay income tax like Canadian workers. This article summarizes the Canada Revenue Agency's (CRA) guidance for newcomers.

When you become a tax resident

• You become a resident of Canada for tax purposes when you have enough residential ties. For most newcomers, this starts on the first day you live in Canada.
• Income earned abroad before you became a resident is not taxed in Canada.
• Your residency status can change from year to year; keep the CRA updated.

Filing deadline

• The tax year is the calendar year, January 1 to December 31.
• Your return is usually due by April 30 of the following year.
• Newcomers only have to file from the year after they become residents. The CRA's example: if you arrived in 2025, file your 2025 return by April 30, 2026.

Benefits you can apply for right away

• Canada Groceries and Essentials Benefit (CGEB), formerly the GST/HST credit: a tax-free quarterly payment for low- and modest-income individuals and families. You can apply right away with form RC151, without waiting to file your first return.
• Canada child benefit (CCB): according to the CRA, temporary residents can start receiving it in their 19th month in Canada, if they hold a valid permit and meet the other requirements.

2026 federal tax rates

Provincial tax is added based on the province you live in on December 31. Each rate only applies to the income within its bracket, not to all your income.

Note Beware of people promising to cut your taxes or get you benefits for periods before you arrived in Canada. The CRA warns these are scams; participants may have to repay, and face penalties or prosecution.