New Roots Canada

Taxes in Canada for newcomers

Taxes fund Canada’s public services. Most newcomers need to file an income tax return each year — even with little or no income — because it is how many benefits are paid.

Find tax resources

The basics

Canada has federal and provincial income tax, and a Goods and Services/Harmonized Sales Tax (GST/HST) on most purchases. Income tax is usually deducted from your pay automatically; you reconcile it once a year by filing a return.

Why filing matters

Filing a return is how you receive benefits and credits such as the GST/HST credit and the Canada Child Benefit. You may receive money back even if you earned little. Newcomers become tax residents when they establish significant residential ties in Canada.

Free tax help

The Community Volunteer Income Tax Program helps people with modest income file simple returns for free. Settlement agencies can connect you, and many tax software packages are free for simple returns.

Official sources

Always confirm current details on the official page. This guide is general information, not legal or immigration advice.