Newcomer to Canada First-Year Tax Calculator (2026)

Estimate your first Canadian tax return. You see the tax on your income since you arrived, your refund or balance, and how the prorated basic personal amount, the 90% rule and the foreign tax credit affect you. You also get your TFSA, RRSP and FHSA room as a new resident, and the benefits you can apply for before you file.

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Not taxed here. If it was more than 10% of your income before you arrived, your credits are prorated
More options
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Taxable in Canada (rent, salary, interest abroad)
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Claimed as a foreign tax credit
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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 2026231 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 of room 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.

How this calculator works

If the words on this page are new to you, the money terms for newcomers page gives the Canadian word for in-hand salary, tax slab, TDS, PF, EMI and the rest, with the calculator for each.

In your arrival year you are a part-year resident. The calculator:

  1. Counts the days from your arrival date to December 31.
  2. Prorates the federal and provincial basic personal amounts by that fraction, unless the 90% rule gives you the full amounts.
  3. Runs the 2026 federal and provincial tax engine on your Canadian income since arrival, with full CPP, EI and Canada employment credits. These are never prorated.
  4. Compares the result with the tax taken off your pay to estimate your refund or balance, and reports your TFSA, RRSP and FHSA position.

Worked example: arrived May 15, 2026, $45,000 earned since, $20,000 earned abroad before, Ontario

LineAmount
Days resident231 (63%)
Federal basic personal amount (prorated)$10,412.09
Income tax for 2026$6,329.41
Tax if resident all year$5,243.00
Tax deducted from pay$7,000.00
Refund$670.59
TFSA room for 2026$7,000
RRSP room for 2027$8,100

Assumptions

  • Employment income only, and the basic personal amount only. Spouse and dependant credits (also prorated) are not included.
  • Foreign income before arrival is used only to decide whether the 90% rule applies.
  • Quebec newcomers follow the same proration for the Quebec basic amount.

Your first-year checklist

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

  1. First weekApply for a SIN ↗
  2. First monthForm RC151 ↗
  3. First monthApply for the CCB ↗
  4. Next springNewcomers to Canada ↗
  5. 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 if income earned before you arrived was more than 10% of your income for that part of the year, your basic personal amount is prorated.
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, whatever month you arrive. Years before you arrived do not add room.
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. Owning a home in another country does not disqualify you as a first-time buyer, as long as you meet the other conditions.
Do I have to file a tax return?
You should, even with low income. Filing is how you get the Canada Groceries and Essentials Benefit (the renamed GST/HST credit), the Canada Child Benefit and provincial credits. It is also how your RRSP room is calculated.
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. Income those assets earn after arrival is taxable here.
Is my residency date my landing date or the day I moved?
The day you set up significant residential ties, usually the day you arrived to live here. It is 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.
Sources

Sources

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

  1. CRA T4127 Payroll Deductions Formulas, 123rd Edition, effective July 1, 2026 (Rev. 26/06)
  2. CRA – CPP contribution rates, maximums and exemptions
  3. CRA – Second additional CPP (CPP2) contribution rates and maximums
  4. ESDC – EI maternity and parental benefits: how much you could receive
  5. CRA – EI premium rates and maximums
  6. CRA – Indexation adjustment for personal income tax and benefit amounts
  7. Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.), s. 150(1)(d) and s. 156.1(4): filing deadlines and balance-due day
  8. Canada Employment Insurance Commission – Canada Employment Insurance Commission confirms 2027 Employment Insurance premium rate (September 14, 2026)
  9. CRA, Canadian income tax rates for individuals, current and previous years
  10. Government of Alberta, Personal income tax
  11. Government of British Columbia, Personal income tax rates (2026)
  12. Government of British Columbia, B.C. tax reduction credit
  13. Manitoba Finance, Personal income taxes
  14. CRA, T4032 Payroll Deductions Tables, New Brunswick (January 2026)
  15. Government of New Brunswick, Personal income tax
  16. Newfoundland and Labrador Department of Finance, Personal income tax
  17. Newfoundland and Labrador, Bill 16 (2026), An Act to Amend the Income Tax Act, 2000
  18. Nova Scotia Finance and Treasury Board, Personal income tax indexation update for 2026
  19. Nova Scotia Income Tax Act (consolidated), s. 35 low income tax reduction
  20. CRA, T4032 Payroll Deductions Tables, Northwest Territories (January 2026)
  21. Government of Nunavut, January 2026 Tax Rate Sheet
  22. CRA, T4032 Payroll Deductions Tables, Nunavut (January 2026)
  23. Ontario Ministry of Finance, Personal income tax rates and credits (2026 dataset)
  24. Prince Edward Island Income Tax Act (consolidated 2026)
  25. Revenu Québec, TP-1015.F-V (2026-01) Formulas to Calculate Source Deductions and Contributions
  26. Retraite Québec, Québec Pension Plan Figures 2026
  27. Gouvernement du Québec (Québec.ca), Taux de cotisations au Régime québécois d'assurance parentale (RQAP) — page updated 19 March 2026
  28. Ministère des Finances du Québec, Parameters of the Personal Income Tax System for 2026 (November 2025)
  29. Government of Saskatchewan, Personal income tax
  30. CRA, T4032 Payroll Deductions Tables, Yukon (January 2026)
  31. CRA, Federal non-refundable tax credits for newcomers and emigrants
  32. CRA, Newcomers to Canada
  33. CRA, Before contributing to a TFSA
  34. CRA, FHSA definitions (first-time home buyer, qualifying home)
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Data verified for tax year 2026: Updated By Nishant Malik, founder of GlassLayer