According to a new report from Statistics Canada, refugees are significantly more likely to file income tax returns within their first year or two in Canada compared to skilled economic immigrants. Maple News reports that between 2017 and 2019, a striking 95% of refugees submitted their tax returns in the first two years post-arrival, regardless of whether they arrived under government or private sponsorship.
In contrast, only 77% of newcomers arriving through the Federal Skilled Worker Program (FSWP) filed taxes within the same timeframe. These skilled workers, selected through Express Entry for their education, language skills, and work experience, were found to have the lowest initial tax filing rates among all immigration categories.
The study focused on immigrants of core working age—between 25 and 64—who settled in Canada from 1993 to 2019. Tax filing trends improved in the late 1990s and have remained generally stable since. From 2017 to 2019, an estimated 90% of all new immigrants filed an income tax return within a year or two of arrival.
Immigration category, education, and access to settlement services appear to influence tax filing behavior. Refugees are more likely to connect with settlement services, which often include financial literacy training and guidance on how to access benefits. This may contribute to higher awareness about the importance of filing a tax return—which is necessary to qualify for many government support programs.
Meanwhile, economic immigrants, especially those under the FSWP, may delay tax filing due to factors such as delayed entry into the Canadian job market, unfamiliarity with the tax system, or transitioning from international careers.
Other immigration classes showed strong engagement with the tax system. Immigrants under the Canadian Experience Class, provincial nominee programs, and family sponsorship categories all registered filing rates above 89%, further underscoring the varied integration experiences based on immigration pathways.
The Federal Skilled Worker Program immigrants comprised 16% of the total newcomers in the 25–64 age range during the 2017–2019 period, making it the third most common immigration stream, following provincial nominees and family-sponsored immigrants.
These findings highlight the need for tailored outreach and settlement support to ensure all newcomers are informed about their financial responsibilities and entitlements in Canada. As the government continues to rely on economic immigrants to meet labor market demands, improving initial integration and financial participation remains a pressing policy focus.