Filing your first income tax return in Canada can feel daunting, especially for newcomers. But according to Maple News, understanding the basics of the Canadian tax system can help you access financial benefits and avoid penalties—whether you’ve earned income or not.
If you’re considered a resident of Canada for tax purposes, you’re either legally required to file a return or highly encouraged to do so. This includes permanent residents, international students, temporary foreign workers, and in some cases even visitors. The Canada Revenue Agency (CRA) determines your residency status based on personal, social, and economic ties—such as whether you have a home, job, or family in Canada.
Filing taxes can open the door to valuable benefits. For example, the GST/HST credit offers up to $519 for a single individual, and the Canada Child Benefit (CCB) provides up to $7,787 annually per child under six. Other credits include the Canada Workers Benefit, Canada Carbon Rebate, tuition credits, and deductions for RRSP contributions or moving expenses. Many of these are refundable, meaning you can receive money even if you had no income.
To file your taxes, you’ll need a Social Insurance Number and relevant tax documents like T4s or T5s from employers or financial institutions. Most Canadians file electronically in March or April using tax software or professional services. The 2025 deadline to file your 2024 taxes is April 30 for individuals and June 15 for the self-employed, though any tax owed must still be paid by April 30 to avoid interest.
Missing your filing deadline can result in financial penalties—including a 5% late fee plus an additional 1% per month late. Even if you can’t pay your balance due, it’s best to file on time and contact the CRA about repayment options.
Newcomers are also urged to avoid common mistakes such as misidentifying their tax residency, missing out on eligible credits, or not filing at all. Failing to file could also affect your future eligibility for Canadian citizenship, which requires meeting tax obligations for a set number of years.
Even if you didn’t earn Canadian income, you’re still required to report income earned elsewhere, as residents are taxed on worldwide income. If you’re unsure of your status or entitlements, Maple News recommends consulting a tax expert to ensure accuracy and take full advantage of available tax credits and deductions.
Navigating Canada’s tax system may seem intricate, but with the right guidance, newcomers can benefit from tax refunds, access critical government support, and remain in compliance with Canadian laws.