Before we get into the details and steps, here’s something you should know: if you move to Ontario or anywhere else in Canada, you’ll have to deal with two separate journeys. One is emotional and social: getting used to a new culture, making friends, and finding the right neighborhood. The other is bureaucratic and fiscal: figuring out CRA for new Canadians, your immigration and tax residency status, and what responsibilities (and chances) you have. These aren’t just boring rules; how you classify your residency or non-residency can have a big impact on your taxes, the credits you can claim, and how smoothly your first tax year goes.
New to Ontario? Start Here
Welcome to Ontario if this is your first time here. This province has a mix of busy cities, big parks, and a tax system that is pretty standard for Canadian provinces. Rates, credits, and provincial programs are different in Ontario than they are in Quebec or British Columbia, for example. As a new person in Ontario, you’ll want to know exactly when and how you become a resident for tax purposes and what that means for taxes in Canada. The rest of this guide will help you get from “just arrived” to “first Ontario return filed with confidence.”
Residency vs. Immigration Status (They’re Different)
One of the first mistakes new immigrants make is thinking that their immigration status (temporary worker, permanent resident, student) is the same as their tax residency. That’s not the case. Your immigration visa does not determine your residency status for income tax purposes in Canada. The Canada Revenue Agency (CRA) does that.
So, when does a new person become a tax resident? Usually, the day you arrive and start to make “residential ties.” These connections are:
- A house in Canada
- A spouse or dependents living in Canada
- Personal property, bank accounts in Canada, a driver’s license, or social connections
- Your plans to stay, how long you’ve lived there, and so on
The CRA also has special “deemed resident” or “factual resident” rules for people who left Canada and are coming back, or for people who are only temporarily living there.
To sum up: your immigration status tells you if you can live and work in Canada, and your tax residency status tells you how much and what income you have to report to the CRA.
Ontario Snapshot: What Changes When You’re a Resident
If you live in Ontario and are a tax resident of Canada, you must report your worldwide income (both inside and outside Canada) for the time you are a resident. You can get a number of federal and provincial tax credits and benefits, such as the GST/HST credit and Ontario’s provincial credits.
Your provincial tax (often called “Ontario tax”) is calculated at the same time as your federal tax. You only have to file one return, and the CRA collects both.
Your total tax bill may be very different depending on whether you live in Ontario or another province. This is because Ontario has its own tax brackets and credits. For instance, here are Ontario’s provincial tax brackets for 2025:
| Taxable Income (CAD) | Ontario Rate |
| First $52,886 | 5.05% |
| Over $52,886 up to $105,775 | 9.15% |
| Over $105,775 up to $150,000 | 11.16% |
| Over $150,000 up to $220,000 | 12.16% |
| Over $220,000 | 13.16% |
These rates are added to the federal brackets, so your marginal tax rate is the sum of the federal and Ontario rates.
Non-Resident vs. Resident: Filing Scenarios
Let’s take a break and ask: when are you a non-resident (or part-year resident)? Does that mean you don’t have to file in Canada at all?
Non-Resident / Canada Non-Resident Tax
- If you don’t have strong residential ties to Canada and have only been there for less than 183 days, you might be considered a non-resident for tax purposes.
- If you don’t live in Canada, you only have to pay taxes on income that comes from Canada, like Canadian rental income or income from a job in Canada.
- There may be a flat Part XIII withholding tax on income like dividends, pensions, rent, and other types of income instead of regular progressive rates.
- You might not need to file a full tax return unless you want to, for example, to get a refund or take deductions.
Part-Year Resident / First-Year Resident
If you move to a new place in the middle of the tax year and stay there for part of the year, you will be a part-year resident. You have to pay taxes on your worldwide income as soon as you arrive. Before you get there, only income from Canada is taxed.
If you don’t meet the “90% rule” (your Canadian-source income during the non-resident part must be at least 90% of your global income for that time period), your non-refundable tax credits may have to be prorated.
So, the timing, the types of income, and your ties to Canada will have a big effect on how you file.
When Do Newcomers File Taxes? Timeline & What to Expect
If you or your spouse had a business, your first Canadian tax return is due on June 15. If not, it’s due on April 30 of the year after you arrived.
Filing early helps the CRA figure out if you qualify for certain benefits, like the GST/HST credit, provincial benefits, or the child benefit.
It’s usually a good idea to file a return in your first year, even if you didn’t make any money, so you don’t miss out on credits or benefits.
What to Bring: Newcomer Document Checklist
Here’s a list of things you’ll need to get ready for your first Ontario return:
- Social Security Number (SIN)
- The date you arrived in Canada (on official immigration papers)
- Passport, visa for immigration, and confirmation
- T4 slips (for working in Canada)
- T5, T3, or other forms for investment income
- Information about foreign income, such as the amounts, the source, and the country
- Information about any property you owned before you moved, like stocks or real estate
- The global net income of your spouse or common-law partner (if they have one)
- Receipts for deductions or credits, like for moving, medical, or child care costs
- Banking information for direct deposit of refunds
Storing these in a folder will help you avoid problems when tax season comes around.
The first return from Ontario: Step by Step (Resident / Part-Year)
First Ontario Return: Step-by-Step (Resident / Part-Year)
Find out if you are a non-resident, part-year resident, or full-year resident.
- Report your income.
- Confirm residency status (consider ties; use NR74 if unsure).
- Gather docs (use checklist).
- Create CRA My Account and set up direct deposit.
- Choose a path: approved Tax software (NETFILE) or a professional; note free clinics for eligible newcomers.
- Enter Canadian income; report world income from your residency start date; claim credits/deductions.
- Review & e-file; save confirmation; keep records at least 6 years.
- Watch for NOA; learn how to make adjustments if needed.
Foreign Income 101 (Treaties, Credits, “Tax-Free” Pitfalls)
Income from other countries is hard to deal with. You have to report it even if you earned it outside of Canada. Because of tax treaties, some of that money might not have to pay Canadian taxes or might be taxed in a different way.
You can usually get a foreign tax credit to avoid paying taxes twice. That credit is usually the smaller of the two:
- The tax you paid in another country
- The amount of Canadian tax you would have to pay on that same foreign income
Be careful with the “deemed disposition” rule: if you owned property before moving to Canada, it is considered to have been sold and bought back at fair market value on the day you arrived. This can create a capital gains basis going forward.
Ontario Notes: Brackets, Credits & “Ontario Tax” Basics
We saw earlier that your provincial tax (Ontario tax) is added to your federal tax. Ontario also has some tax credits that can’t be used again (like the basic personal amount and education credits). These credits can be used to lower both federal and provincial taxes, so your province often has a say in what your effective tax rate is.
It’s helpful to know how marginal tax rates work: each extra dollar is taxed at the rate of the bracket it falls into, not at your average rate.
Also, keep in mind: Ontario collects health premiums (the Ontario Health Premium) as part of the income tax system, which is different from some other provinces.
Special Cases for Newcomers
- Tax return for a spouse who doesn’t live in Canada: You can still include your spouse’s income for some credit calculations if they are not a resident for the year, but it gets tricky.
- International students: If a student lives in Canada for more than 183 days or has strong ties to the country, they can be considered a resident.
- Mid-year arrival: You will be a part-year resident and have to follow the rules we talked about above.
- Leaving Canada permanently: You may need to file a departure tax return.
- If you own foreign assets worth more than CAD 100,000, you may need to file Form T1135.
How We Help Newcomers (Service Section)
(If you were offering tax help or consulting services, this is how you could show your worth.)
We help new people with:
- Checking your residency status so you don’t pay too much or too little
- First-year tax filing, making sure that all credits, treaties, and proration rules are followed correctly
- Using treaties and foreign tax credit rules to get the most out of foreign income
- Help with audits if the CRA questions your residency or asset reporting
- Ongoing advice on how your tax obligations change as your situation changes
We can help you plan this out in your first year and beyond if you want a personalized consultation.
Wrapping Up
For people who are new to Canada, learning the ropes of CRA can feel like climbing a steep hill. But once you get through that first return and know your residency status for immigration and tax purposes, as well as the rules for non-resident tax in Canada and residency and tax rules for immigrants in Canada, things will get a lot easier in the years to come. I can help you fill out a sample return for your situation (income levels, country of origin, etc.) if you’d like.
FAQs
Do I need to file a Canadian tax return as a non-resident?
If you live outside of Canada, you usually only have to report income from Canada. You might or might not need to file, depending on whether that income was already taxed and whether you want to get deductions or refunds.
When do newcomers file taxes?
You have until April 30 of the year after you arrive to file your taxes. If you are self-employed, you have until June 15 to file, but you still have to pay by April 30.
What’s counted as foreign income, and do treaties help?
Foreign income is any money you make from outside of Canada, like interest, dividends, salary, and so on. Tax treaties can lower or eliminate taxes and give credits to avoid paying taxes twice.
International students, resident or non-resident?
If you live in Canada for more than 183 days or have strong ties to the country, you are usually considered a resident for tax purposes, even if you are a student.
What if I arrived mid-year?
You will be treated like a resident for part of the year. Before you arrive, your income is considered non-resident income. After you arrive, it is considered worldwide income.
How long must I keep documents?
You usually have to keep records for six years after the end of the tax year.
What is a T4 Slip, and when do I get it?
A T4 slip is your employer’s “Statement of Remuneration Paid,” which shows your wages, deductions, and withheld tax. You should get it by the end of February, after the tax year ends.
Where do I see Ontario tax brackets/tax rates?
You can look them up on the websites of the CRA or the Ontario government. Depending on how much money you make, Ontario’s provincial rates will range from 5.05% to 13.16% in 2025.
