Do I pay Canadian tax on income I earned before I moved?

No. Only income from the date you became a resident is taxed in Canada (plus certain Canadian-source income before that). But income earned before arriving can reduce your credits: if it was more than 10% of your income for the non-resident part of the year, your basic personal amount is prorated by days resident.

What is the 90% rule?

If 90% or more of your income for the part of the year before you arrived was Canadian-source (or you had no income), you can claim the full basic personal amount and other personal credits. Otherwise they are prorated: amount × days resident ÷ 365.

How much TFSA room do I get in my first year?

The full annual limit ($7,000 in 2026) if you are 18 or older when you become a resident, no matter what month you arrive. Room from years before you arrived does not count.

Can I contribute to an RRSP in my first year?

Only if you have room from a prior year, which newcomers do not. Room is 18% of the previous year's Canadian earned income, so your 2026 income creates room for 2027.

Can I open an FHSA if I owned a home abroad?

Usually yes. A 'qualifying home' for the FHSA is a home in Canada, so owning a home in another country does not disqualify you as a first-time buyer, provided you meet the other conditions.

Do I have to file a tax return?

You should, even with low income: it is how you receive the Canada Groceries and Essentials Benefit (the renamed GST/HST credit), Canada Child Benefit, provincial credits, and how your RRSP room is calculated. Use form RC151 to get that benefit for your arrival year.

Which province's tax do I pay?

The province where you live on December 31, on all your income since arrival, even if you lived in another province for part of the year.

Do I report money I brought into Canada?

No. Cash and savings you bring in are not income. You may need to report foreign property worth over $100,000 (form T1135) starting the year after you arrive, and income those assets earn after arrival is taxable here.

Is my residency date my landing date or the day I moved?

The day you established significant residential ties, usually the day you arrived to live here, not the date on your immigration document. If you visited first and moved later, use the later date.

Can I get benefits before I file my first return?

Yes. Apply for the Canada Groceries and Essentials Benefit (formerly the GST/HST credit) with form RC151 and the Canada Child Benefit with RC66 (plus RC66SCH for your worldwide income) as soon as you arrive; the CRA uses the income you declare on the forms until your first return is assessed.

Do I report my spouse's income if they are still abroad?

For benefits, yes: the CRA needs your spouse's worldwide income to calculate the Canada Groceries and Essentials Benefit and CCB, even if they are not in Canada. Their income is not taxed here unless they become a resident.

Newcomer to Canada First-Year Tax Calculator (2026)

Estimate your first Canadian tax return: the tax on income since you arrived, your refund or balance, the prorated basic personal amount and the 90% rule, the foreign tax credit on income earned abroad after arrival, your TFSA, RRSP and FHSA room as a new resident, and the benefits you can apply for before you file.

The CRA will refund you$670.59Tax of $6,329.41 on $45,000 for your 231 days as a resident. Your basic personal amount is prorated to 63% ($10,412 federal) because of income before you arrived.

You keep $38,671Income tax $6,329

Days resident in 2026	231 days (63%)
Federal basic personal amount (prorated)	$10,412.09
Income tax owed for 2026	$6,329.41
Tax if you had been resident all year	$5,243.00

Your room as a new resident. TFSA: the full $7,000 for 2026 from the day you arrived (18+ and a SIN). RRSP: $0 for 2026; your 2026 pay creates $8,100 for 2027 once you file. FHSA: you can open one now if you are a first-time buyer in Canada, even if you owned a home abroad.

Benefits you can apply for before your first return. Canada Groceries and Essentials Benefit (the renamed GST/HST credit): send form RC151 now; payments start the quarter after approval. Canada Child Benefit: apply with RC66 if you have children under 18. Both need your worldwide income for 2025 and 2026 on the form.

Show the math

Only Canadian-source income since your arrival date (plus foreign income earned after arrival) is taxed. The federal and Ontario basic personal amounts are multiplied by days resident ÷ 365 unless 90% or more of your income for the part of the year before arrival was Canadian-source (or you had none); CPP, EI and the Canada employment amount are never prorated. Foreign tax paid on post-arrival foreign income is credited up to the Canadian tax on that income (T2209). Money you bring into Canada is not income. The CCB figure uses the federal formula on the family income you entered; the CRA prorates the arrival year on your application.

What you need to know for 2026

In your arrival year, the basic personal amount ($16,452 federally) is prorated by days resident ÷ 365, unless 90% or more of your income for the non-resident part of the year was Canadian-source.
CPP, EI and the Canada employment amount are never prorated.
TFSA room starts at the full $7,000 for the year you arrive if you are 18 or older; RRSP room is based on the previous year's Canadian earned income, so it is usually zero in year one.
You can open an FHSA as soon as you are a resident, and a home you owned abroad does not stop you being a first-time buyer for it.
You must file a return to receive the Canada Groceries and Essentials Benefit (formerly the GST/HST credit), Canada Child Benefit and provincial benefits; newcomers can apply for it for the arrival year with form RC151.

Your first-year checklist

Benefits start only after you apply, and several are available from the month you arrive.

First weekGet a Social Insurance Number in your first days; you need it to work, to file, and for every benefit.Apply for a SIN ↗
First monthApply for the GST/HST credit with form RC151 as soon as you arrive; it does not wait for your first tax return.Form RC151 ↗
First monthWith children, apply for the Canada Child Benefit with forms RC66 and RC66SCH; payments start the month after you become a resident.Apply for the CCB ↗
Next springFile a tax return for the arrival year even with low income: it triggers the credits and starts RRSP and TFSA room.Newcomers to Canada ↗
Give your employer a TD1 so the right credits are used on your pay from the start.TD1 personal tax credits return ↗

Common questions

Frequently asked questions

Do I pay Canadian tax on income I earned before I moved?: No. Only income from the date you became a resident is taxed in Canada (plus certain Canadian-source income before that). But income earned before arriving can reduce your credits: if it was more than 10% of your income for the non-resident part of the year, your basic personal amount is prorated by days resident.
What is the 90% rule?: If 90% or more of your income for the part of the year before you arrived was Canadian-source (or you had no income), you can claim the full basic personal amount and other personal credits. Otherwise they are prorated: amount × days resident ÷ 365.
How much TFSA room do I get in my first year?: The full annual limit ($7,000 in 2026) if you are 18 or older when you become a resident, no matter what month you arrive. Room from years before you arrived does not count.
Can I contribute to an RRSP in my first year?: Only if you have room from a prior year, which newcomers do not. Room is 18% of the previous year's Canadian earned income, so your 2026 income creates room for 2027.
Can I open an FHSA if I owned a home abroad?: Usually yes. A 'qualifying home' for the FHSA is a home in Canada, so owning a home in another country does not disqualify you as a first-time buyer, provided you meet the other conditions.
Do I have to file a tax return?: You should, even with low income: it is how you receive the Canada Groceries and Essentials Benefit (the renamed GST/HST credit), Canada Child Benefit, provincial credits, and how your RRSP room is calculated. Use form RC151 to get that benefit for your arrival year.
Which province's tax do I pay?: The province where you live on December 31, on all your income since arrival, even if you lived in another province for part of the year.
Do I report money I brought into Canada?: No. Cash and savings you bring in are not income. You may need to report foreign property worth over $100,000 (form T1135) starting the year after you arrive, and income those assets earn after arrival is taxable here.
Is my residency date my landing date or the day I moved?: The day you established significant residential ties, usually the day you arrived to live here, not the date on your immigration document. If you visited first and moved later, use the later date.
Can I get benefits before I file my first return?: Yes. Apply for the Canada Groceries and Essentials Benefit (formerly the GST/HST credit) with form RC151 and the Canada Child Benefit with RC66 (plus RC66SCH for your worldwide income) as soon as you arrive; the CRA uses the income you declare on the forms until your first return is assessed.
Do I report my spouse's income if they are still abroad?: For benefits, yes: the CRA needs your spouse's worldwide income to calculate the Canada Groceries and Essentials Benefit and CCB, even if they are not in Canada. Their income is not taxed here unless they become a resident.

Full guide: how it works, a worked example, every rule and every source Read the guide →

Sources

Every figure on this page comes from one of these primary sources. Data last verified September 7, 2026.

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Data verified for tax year 2026: September 7, 2026 Updated September 7, 2026 By Nishant Malik, founder of GlassLayer