? Tax Filing Basics
Canada uses a "self-assessment" tax system, where each year you file your own income for the previous year. The deadline:April 30 every year(Self-employed people have until June 15, but any taxes owed still must be paid by April 30).
- Even if your income is zero (for example, the year you just arrived), filing lets you receive the GST/HST credit and the Climate Action Incentive (in some provinces)
- For your first year filing taxes, it's recommended to fill it out on paper, then switch to free software in later years
- A Social Insurance Number (SIN) is required to file taxes
? What documents do you need to prepare?
| Document Name | Where it comes from | Purpose |
|---|---|---|
| T4 slip | Employer (sent by the end of February) | Reporting employment income |
| T2202 (tuition) | Your school's student system | Tuition tax credit |
| T5 (interest income) | Banking | Savings account interest |
| RRSP receipt | Financial institution | RRSP contribution tax deduction |
| Rent receipts | Landlord | Tax-deductible in certain provinces |
| Notice of Assessment | CRA (previous year's notice of assessment) | As a reference for next year's tax filing |
? Free tax-filing tool: Wealthsimple Tax
This is currently the free tax software most used by new immigrants and international students. It's CRA-certified NETFILE software, the interface is friendly to Chinese speakers, and it's completely free (you can choose to leave a tip).
Tax Filing Steps
- Go to wealthsimple.com/en-ca/tax Create a free account
- Enter your SIN, date of birth, and the province you were in on December 31, 2025
- Upload or manually enter form details such as your T4
- The software automatically calculates your refund or the amount owed
- Submit directly to the CRA via NETFILE
- The refund is usually deposited into your bank account within 2 weeks
? Which tax refunds can newcomers claim?
1. GST/HST Credit
A tax rebate benefit for low- and middle-income residents.You can apply just by filing; there's no need to submit a separate application form. Singles get about $496 a year, couples $650, and $173 per child. Paid out once a quarter (January, April, July, and October).
2. Canada Carbon Rebate (some provinces)
Residents of Alberta, Saskatchewan, Manitoba, and Ontario can receive a quarterly carbon tax rebate, around $250–380/year for singles.
3. Ontario Trillium Benefit (if you live in Ontario)
A combined benefit bundling rent assistance, the Northern Ontario Energy Credit, and the Ontario Sales Tax Credit. The lower your income, the more you can receive.
4. BC Climate Action Tax Credit (if you live in BC)
$447 per year for singles, $893 for couples. Paid quarterly.
In March 2025, Xiaoming flew from Taiwan to Vancouver on a working holiday and worked at a restaurant until December.
Annual income: $22,000 (before tax)
Tax already withheld by employer: $1,840
Refund after filing: $1,240 (federal + BC provincial tax)
Plus GST credit $496 + BC climate credit $447
Received refunds + benefits totaling over $2,183 — If you don't file taxes, you lose it all.
⚠️ Common mistakes new immigrants make
- Assuming you don't need to file with only a few months of income: Even if you only worked in Canada for 3 months, the income from that period still needs to be reported
- Forgetting to report overseas assets in Taiwan: Once you become a tax resident of Canada, overseas assets over $100,000 CAD must be reported on a T1135 (it's not taxed, just reported)
- Waiting after missing a T4: Employers must issue a T4 by the end of February; if you don't receive one, you can contact HR or check MyAccount
? How to set up a My Account with the CRA?
CRA My Account is the official gateway for managing your Canadian taxes; you can check your filing status, refund progress and apply for benefits. To set one up:
- Go to canada.ca/en/revenue-agency → Sign in/Register
- Your first login requires verifying your identity with the previous year's Notice of Assessment (NOA)
- Or you can set up a GCKey account at Service Canada
❓ Tax Filing FAQ
I've only been in Canada for half a year — do I need to file taxes?
Yes. As long as you have earned income within Canada, or wish to apply for the GST/HST credit, you need to file. Even if you have no income, you can still receive tax refund benefits after filing.
Is Wealthsimple Tax really free? What are the limitations?
Yes, completely free. The only limitation is that complex investments or foreign asset reporting require upgrading to a paid version, but most newcomers working casual jobs fall within the free version's scope.
What are the consequences of not filing taxes?
The CRA will issue a Notice of Assessment estimating your tax owing (usually on the high side) and add penalties and interest. Long-term failure to file may affect your application for government benefits or your immigration application.
How long after filing until I get my refund?
With electronic filing via NETFILE, you usually get your refund within 2 weeks, deposited directly into the bank account registered in your CRA My Account. Paper filing can take 6-8 weeks.
Do I need to report my Taiwanese bank account?
If you have become a Canadian tax resident and hold assets totaling more than $100,000 CAD outside of Canada (including Taiwan), you need to file Form T1135. This is just a declaration, not double taxation.