First-Year Newcomer Tax Guide

Learn how the CRA taxes newcomers. Compute your Basic Personal Amount (BPA) and understand the 90% Rule.

CRA First-Year Tax Rules

Your tax residency starts on the day you establish significant residential ties in Canada. Filing your first Canadian tax return (Form T1) requires navigating specific rules that differ from subsequent years:

Pre- vs. Post-Landing Income:

Pre-Landing (Foreign Income): Foreign income earned in your home country *before* your official landing date is **not taxable** in Canada. You must, however, report it on your return to determine your eligibility for pro-rated credits.
Post-Landing (Worldwide Income): Once you land, you are a Canadian tax resident. You must report and pay Canadian tax on **all worldwide income** earned after this date (NRE interest, foreign dividends, local salary).

The 90% Rule for Personal Tax Credits:

The **Basic Personal Amount (BPA)** ($15,705 in 2026) is a non-refundable tax credit that allows you to earn up to this amount tax-free. For newcomers, the CRA pro-rates this credit based on the days you lived in Canada.

The 90% Rule Exception: If your income earned *outside* Canada in the pre-landing period is less than 10% of your total worldwide income for the entire calendar year (meaning 90% or more of your year's income was earned inside Canada after landing), you can claim the **full, unprorated Basic Personal Amount ($15,705)**.

BPA & 90% Rule Calculator

Enter your landing date and earnings to check if you meet the 90% rule, and estimate your allowed personal amount credit.

First-Year Filing Checklist

Social Insurance Number (SIN)Ensure your SIN is active. If on a temporary work permit, it will start with a "9".
Confirm Date of LandingDouble-check your Confirmation of Permanent Residence (COPR) or passport stamp for your official landing date.
Register for CRA My AccountCRA requires you to file your first return before registering. After your first return is assessed, create your account immediately to track credits.
Setup Direct DepositLink your Canadian bank account in the tax portal to speed up tax refund payments and CGEB quarterly credits.
Gather T4 Slips and ReceiptsGather all employer T4 slips (employment), T5 slips (bank interest), and T2202 (university tuition receipts).
Document Pre-Arrival Income in CADExamine payslips or tax filings from your home country to get your pre-arrival earnings in CAD (using CRA average annual exchange rates).
Choose CRA-Certified Filing SoftwareChoose a certified NETFILE software. Highly recommended options for newcomers are Wealthsimple Tax (free/donation-based) or TurboTax Free.

Important Tax Deadlines

Tax Filing Deadline:	April 30
Self-Employed:	June 15
RRSP Deadline:	March 1
Filing Mode:	NETFILE / Paper

First-Year NETFILE Limits

In most cases, the CRA allows newcomers to file their first tax return online via **NETFILE**.

However, if you do not have a valid SIN, or if the system rejects your filing due to lack of historic records, you will be forced to **print, sign, and mail a paper tax package** to the CRA international tax section in Sudbury, ON.