Canada Tax Return Guide for Newcomers 2026
T1, CRA NETFILE, free filing options, GST/HST credit, Canada Child Benefit — and the key deadlines that cost newcomers money every year.
Do newcomers have to file taxes in Canada?
Yes. If you were a Canadian resident for any part of the tax year — even one day — you are required to file a T1 General income tax return. This applies to permanent residents, temporary foreign workers, international students, and refugee claimants.
More importantly: filing is how you claim money that CRA owes you. The GST/HST Credit alone can pay a newcomer $500–$700+ per year in quarterly payments. The Canada Child Benefit can pay over $7,000/year for eligible families. These are not automatically deposited — you must file to trigger them.
Partial-year residency — filing for the year you arrived
The year you arrive in Canada, you are a part-year resident. CRA taxes you as a Canadian resident from the date you established residential ties in Canada — typically the day you arrived with the intent to stay (not a tourist visit).
On your T1 return, you will enter:
- →Your date of entry to Canada as a resident
- →Your Canadian income only from that date forward (not pre-arrival, unless you had Canadian income sources)
- →Worldwide income from your home country for the same period (see below)
Worldwide income reporting
Canada taxes residents on worldwide income. Once you became a Canadian resident, any income you earned anywhere in the world — employment, rental, investment, pension — must be reported on your T1.
If you paid taxes on that income in your home country, you can claim a Foreign Tax Credit on your Canadian return to prevent double taxation. Canada has tax treaties with over 90 countries that specify exactly how this works.
Pre-arrival income (earned before you became a Canadian resident) is generally not taxable in Canada. Tax software will walk you through the dates.
Tax documents you need before you start
Benefits you might be missing as a newcomer
These are automatic once you file — but only if you file. Most newcomers miss at least one.
Quarterly payments from CRA to low-to-moderate income Canadians. Most newcomers qualify in their first year. Claim it automatically when you file your T1, or use form RC151 if you arrived mid-year with no T4 yet.
How much: Up to $519/year for a single person, more for families (2026 amounts).
Source: CRA — GST/HST Credit
Monthly tax-free payments for families with children under 18. Newcomers with children who are legal residents qualify. Maximum $7,437/year per child under 6 (2025–26 benefit year).
Source: CRA — Canada Child Benefit
Ontario combines three credits (Ontario Energy, Northern Ontario Energy, and Ontario Sales Tax Credit) into a monthly payment. Similar programs exist in BC (Climate Action Credit), Alberta, and other provinces. All triggered by filing your T1.
How to file your taxes for free in Canada
Most newcomers can file for free. Here are your three best options:
1. Wealthsimple Tax (recommended)
Free for most Canadian tax returns. NETFILE-certified by CRA. Clean interface, walks you through the partial-year residency screens clearly. Works for newcomers with T4s, T5s, and most common deductions.
File free with Wealthsimple Tax (affiliate link) →
2. CRA Free File / NETFILE-certified software
CRA publishes a list of all certified tax software — both free and paid. Several are completely free (not just free-to-try). Check the official list:
CRA — NETFILE-certified software list →
3. Community Volunteer Income Tax Program (CVITP)
Free in-person tax filing help at hundreds of community organizations across Canada. Run by CRA-trained volunteers. Available to newcomers with modest income. Find a location near you:
Filing with Wealthsimple Tax — step by step
- 1Create a CRA My AccountBefore filing, register for CRA My Account at canada.ca/cra. This lets you view your NOA, track refunds, and set up direct deposit. Use your SIN + date of birth + prior NOA (or 'first-time filer' option).
- 2Set up direct deposit with CRAInside CRA My Account, add your bank account for direct deposit. This is how your refund arrives — and how GST credit and CCB payments land. Fastest refunds come this way (typically 2 weeks vs 8 weeks by mail).
- 3Open Wealthsimple Tax and start a returnCreate a free account at simpletax.ca (Wealthsimple Tax). Select 'New return' and the tax year. Enter your SIN, date of birth, and date you became a Canadian resident.
- 4Enter your T4 incomeType in each box from your T4 slip. Box 14 is your employment income. Box 22 is tax already deducted. The software does all the math.
- 5Claim the GST/HST creditThere is a section for 'Credits and deductions' — the GST/HST credit is applied for automatically just by answering yes to a simple eligibility question. Do not skip this.
- 6Review and NETFILEWealthsimple shows you your estimated refund or balance owing. Review for accuracy, then click 'NETFILE to CRA'. Confirmation arrives within seconds.