Personal Tax

Tax Guide for New Immigrants to Canada

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When Do I Become a Tax Resident of Canada?

You become a Canadian tax resident on the date you establish significant residential ties with Canada. This is typically your "landing date" as a permanent resident, or when you establish a home here. From this date forward, your worldwide income is subject to Canadian tax.

What Income Do I Report as a New Immigrant?

Pre-landing income: Generally not taxable in Canada (report only for determining tax credits/rates). Post-landing income: All worldwide income must be reported. Special rules apply to certain foreign pensions and investments. Foreign assets over $100,000 may require T1135 reporting.

What Credits Are Available to Newcomers?

New immigrants can claim various credits prorated for the portion of the year they were resident: Basic Personal Amount (federal: $15,705 for 2025, prorated), GST/HST credit (apply when filing first return), Canada Child Benefit (apply within 11 months of arrival for children under 18), Provincial credits vary by province.

Should I Report Foreign Property?

If you hold foreign property with a total cost exceeding $100,000 CAD at any time in the year, you must file Form T1135 (Foreign Income Verification Statement). This includes foreign bank accounts, investments, real estate (other than personal-use property).

Frequently Asked Questions

Do I have to report my worldwide income to Canada?

Yes, once you become a Canadian tax resident (typically your landing date), you must report your worldwide income from all sources. Income earned before your landing date is generally not taxable in Canada.

What is the T1135 foreign property reporting requirement?

If you hold foreign property with a total cost exceeding $100,000 CAD at any time during the year, you must file Form T1135. This includes bank accounts, investments, and real estate (excluding personal-use property).