Highlights: New migrants in Canada can save $2000 in taxes
- Canada is offering a range of tax credits and benefits to newcomers
- Temporary and permanent migrants can avail of these benefits
- The IRCC has specified certain eligibility requirements for newcomers to start getting paid
- Newcomers in Canada would need a Social Insurance Number (SIN) to receive benefits and credits
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Tax benefits for Canadian newcomers
The Government of Canada is offering several tax credits and benefits to both temporary and permanent newcomers. Workers, students, temporary residents, and migrants with "approval-in-principle" from IRCC to live in Canada are eligible to benefit from the tax credits offered by the country.
The newcomer status under the Canada Revenue Agency (CRA) is valid for the first year of residence in Canada. CRA offers credits and benefits to new migrants to provide financial support. If they reside in Canada, spouses or common-law partners would be eligible for income tax purposes.
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Social Insurance Number (SIN) from Service Canada
As a newcomer to Canada, you need a Social Insurance Number (SIN) to start receiving payments. The SIN is a confidential and personal, unique 9-digit number that Service Canada issues.
A SIN will help you with:
- Receiving credits and benefits
- Working in Canada
- Opening Canadian bank accounts
You can apply for a SIN online, via mail, or by visiting the Service Canada Centre. In case the Service Canada fails to provide a SIN to someone, the CRA may issue a Temporary Tax Number (TTN), which can be used to get credits, file taxes, and sign up for CRA's online services.
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Tax benefits available in the first year of residence
During the first year of arrival in Canada, a newcomer is not required to do their first tax return before they get the following benefits and credits:
GST/HST credit and Canada Carbon Rebate
The Goods and Service Tax or Harmonized Sales Tax (GST/HST) credit allows a concession on the tax paid by new migrants on things they buy.
Newcomers would be eligible to apply for tax-free quarterly payment only if:
- They are 19 years old or above
- They have a modest or low income
Canada Child Benefit (CCB)
Families with a single child under 18 are eligible for a tax-free monthly payment under the Canada Child Benefit (CCB). This payment provides financial support to the family in raising their children.
Temporary residents who have been legal residents in Canada for 18 months consecutively and applied for a valid permit during their 19th month of residence in Canada are eligible to apply to CCB or any related territorial or provincial programs.
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Territorial and Provincial Benefits and Credits
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Provinces/Territories |
Benefits and Credits |
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Alberta Child and Family Benefit |
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BC Family Benefit BC Climate Action Tax Credit |
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New Brunswick Child Tax Benefit (NBCTB) New Brunswick harmonized Sales Tax Credit (NBHSTC) |
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Newfoundland and Labrador Child Benefit (and Early childhood nutrition supplement) Newfoundland and Labrador Income Supplement (NLIS) Newfoundland and Labrador Disability Amount (NLDA) Newfoundland and Labrador Seniors’ Benefit |
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Northwest Territories Child Benefit Northwest Territories cost of living offset (NTCOLO) |
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Nova Scotia (NSCB) Nova Scotia Affordable Living Tax Credit (NSALTC) |
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Nunavut |
Nunavut Child Benefit (NUCB) Nunavut Carbon Credit (NCC) |
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Ontario Trillium Benefit (OTB) Ontario energy and property tax credit (OEPTC) Northern Ontario Energy Credit (NOEC) Ontario sales tax credit (OSTC) Ontario Child Benefit (OCB) Ontario senior homeowners’ property tax grant (OSHPTG) |
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Prince Edward Island Sales Tax Credit |
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Quebec Family Allowance |
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Saskatchewan Low Income Tax Credit (SLITC) |
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Yukon Government Carbon Price Rebate – Individuals (YGCPRI) |
Other credits and benefits
After filing the first tax return, newcomers would be eligible for the following tax benefits and credits:
- Canada dental benefit
- One-time top-up to the Canada Housing Benefit (closed as of April 12, 2024)
- Disability Tax Credit (DTC)
- Canada Carbon Rebate (CCR) (formerly the Climate Action Incentive Payment)
- Canada workers benefit
- Child disability benefit
- Canada caregiver credit
- Canada training credit
- Home accessibility tax credit
- Children’s special allowances
- COVID-19 benefits from the CRA
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