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Land in Canada on 1 September 2026 and you file a 2026 return that reports your world income from that day on, due 30 April 2027. Your federal basic personal amount shrinks to 122 days out of 365 of the full $16,452, which is about $5,499. Income you earned abroad before landing isn’t taxed here, though the CRA still wants to hear about it.
When do you become a Canadian tax resident?
Usually the day you arrive intending to settle, which can be well before you get a permanent residence card. The CRA looks at residential ties. A home in Canada, a spouse or common-law partner here and dependants here are the big ones. A driver’s licence, provincial health card, bank accounts and memberships are secondary ties that fill out the picture. A separate 183-day rule catches visitors: spend 183 days or more in Canada in a year without settling and you can be treated as a resident anyway. Our pages on Canadian tax residency and the new to Canada life event cover the basics, and the Canada Revenue Agency: newcomers to Canada page lists the ties.
How much is the basic personal amount in your first year?
The CRA prorates it by days of residence. For a 1 September arrival that’s 122 days, so the federal amount is $16,452 times 122 over 365, which comes to $5,499. Ontario’s $12,989 turns into $4,342 by the same method. Other credits tied to days, such as the age amount, shrink the same way.
Say you take a job at $72,000 a year and receive $24,000 between September and December. With full-year amounts, the engine puts income tax at about $1,323. With the credits prorated, the estimate is about $3,294: roughly $2,154 federal and $1,139 Ontario. CPP is about $1,220 and EI about $391 on that pay. Treat it as a rough guide, because your employer withholds by pay period and the engine doesn’t model every credit. Prorating is why a first return can show a balance owing even though your pay cheques looked normal.
What income goes on a part-year return?
Income from all sources, in Canadian dollars, from your arrival date to 31 December. The arrival date goes in the residence information on page 1, as month and day. For the months before you arrived, you report only certain Canadian-source items, such as a Canadian job or taxable Canadian property gains. Foreign salary, interest and rent earned before 1 September stay out of the tax calculation. Foreign pension payments after arrival are reported, and a tax treaty may exempt some of them through line 25600.
To keep the full credits for the months before arrival, you attach a note showing your net world income for that period. Credits aren’t reduced if at least 90% of that income is Canadian-source. Property you bring with you, such as shares, is treated as bought at fair market value on your arrival date, and that becomes your cost later, so screenshot the values on 1 September. Foreign income doesn’t create RRSP room, so a deduction in your first year is unlikely. The Canada Revenue Agency: completing your return as a newcomer page has the detail.
Which benefits can you get, and when?
The Canada child benefit depends on the family’s adjusted net income, and you request it once you’re a resident and a child lives with you. The Canada Groceries and Essentials Benefit, which replaced the GST/HST credit, can be applied for by new residents without a first tax return, with one application per household. Both are paid on income reported to the CRA, so file even if you earned nothing. Temporary residents may have to wait until their 19th month in Canada for the child benefit. Payment calendars are on the child benefit dates and groceries and essentials benefit dates pages. A TFSA can be opened the day you become a resident if you’re 18 or older, and the 2026 room is the full $7,000, with no proration.
Do you have to report foreign accounts and property?
You file Form T1135 if foreign property you own outside registered plans cost more than $100,000 in total at any time in the year, and for a newcomer the cost is the market value on arrival. A bank account in your home country, foreign shares and a rental flat abroad all count. Form T1141, which covers contributions to non-resident trusts, isn’t required in the year you first become a resident, though it can apply later if you set up or fund a foreign trust. Our foreign income reporting page goes through the forms in more detail, and the Canada Revenue Agency: Foreign Income Verification Statement page has the list of property.
What does the first eight months look like?
A timeline for someone landing on 1 September 2026 and filing for 2026 by 30 April 2027:
| When | What to do |
|---|---|
| September 2026 | Get a SIN, open a bank account, give your employer a TD1 form, and note the value of your property on arrival |
| October 2026 | Apply for the child benefit and groceries benefit if they fit your family, and register for CRA My Account |
| November 2026 | Keep foreign income and bank statements by date, with exchange rates for later |
| December 2026 | Residency year ends 31 December; add up your days and the cost of foreign property |
| January and February 2027 | Collect your T4 and other slips, and request any missing ones |
| 1 March 2027 | RRSP deadline for 2026, though room from foreign income is unlikely |
| 30 April 2027 | File the part-year return and any T1135, and pay any balance |
Where does this information come from?
Rules come from the Canada Revenue Agency pages for newcomers, the residency folio, the TFSA pages and the Foreign Income Verification Statement page. The tax figures in the example come from the site engine and are estimates. Checked in October 2026. This is an independent information site: we provide no services, we do not represent the CRA or any organization, and we do not guarantee that anything here is accurate or current. We accept no liability for decisions based on it. Check the official source before you rely on it. See the full disclaimer.
Frequently asked questions
Do I pay Canadian tax on income I earned before I arrived?
No. Income earned abroad before your residency date isn't taxed in Canada. You may still need to show it on a statement of income, for benefits and to claim full credits. After the arrival date, your world income counts, in Canadian dollars.
Is the basic personal amount really reduced in the year I arrive?
Yes, the CRA prorates it by days in Canada. The 2026 federal maximum is $16,452, so an arrival on 1 September gives about $5,499. The full amount is back for 2027, when you're a resident all year.
Can I contribute to an RRSP in my first year?
You can contribute, but you generally can't deduct it on your first return, because room comes from Canadian earned income in prior years. Once your 2026 return is assessed, room built from 2026 pay shows up for 2027.
Do I need to file a return if I had no income in Canada?
Filing is still worth it. The child benefit and groceries benefit are worked out from your return, and it starts your CRA records for TFSA and RRSP room. Your spouse or partner should file too, so the family income used for benefits is right.