Newcomer to Canada? Your First Tax Filing Explained

If you became a resident of Canada at any point during 2025, you have to file a 2025 personal tax return — even if you only lived here for a few months. The good news: new residents qualify for benefits and credits that can return more than the tax withheld from your paycheque. The bad news: the CRA needs information most newcomers don't realize they have to report.

When You Became a Resident Matters

Your residency start date is usually the day you arrived in Canada with the intent to settle permanently. From that day forward, you're taxed on your worldwide income. Income earned before that date in your home country generally isn't taxable in Canada — but you still have to report it on your first return so the CRA can calculate your benefits correctly.

Documents to Gather

• T4 slips from any Canadian employer
• Date of arrival in Canada and country of previous residency
• Foreign income earned in 2025 before your arrival (in Canadian dollars)
• Details of any foreign property worth more than $100,000 CAD (Form T1135 may be required)
• Tuition receipts (T2202) if you studied at a Canadian institution
• Medical and dental expenses from your arrival date forward
• Rent receipts (Ontario Trillium Benefit eligibility)

Credits and Benefits Most Newcomers Miss

• Canada Child Benefit (CCB) — apply through Form RC66 even if you have a SIN
• GST/HST Credit — quarterly payment, automatic once you file
• Ontario Trillium Benefit — for Ontario residents who paid rent or property tax
• Climate Action Incentive Payment (CAIP)
• Canada Workers Benefit (CWB) — refundable credit for low-income workers

Foreign Property Reporting (Form T1135)

If you owned foreign property worth more than $100,000 CAD at any point after becoming a resident, you must file Form T1135. This includes foreign bank accounts, real estate (other than personal-use property), and shares of foreign corporations. Penalties for missing this form start at $25 per day, up to $2,500 — and the CRA enforces it aggressively.

Tax Treaties and Double Taxation

Canada has tax treaties with most countries that prevent you from being taxed twice on the same income. If you paid tax to your home country on income earned there before becoming a Canadian resident, you typically don't owe Canadian tax on it. But the rules vary by treaty, and getting it wrong can cost thousands.