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The TD1 form is the personal tax credits return you give a new employer so they can work out how much income tax to take off each pay. You fill in two of them, one federal and one for your province or territory. For 2026 the federal form starts you off with a basic personal amount of $16,452.
What is a TD1 form and who needs one?
Quick note on the name. “TD1 Canada” is also how some people find their bank, but we’ve assumed you mean the CRA payroll form, since that’s the TD1 with its own rules. If you came for the bank, this isn’t it.
You give a TD1 to an employer or payer when you start a new job, or when you want more tax taken off your pay. Your employer uses it as the best estimate of your personal tax situation. They keep it on file and never send it to the CRA.
Quebec adds a step. Quebec residents also complete the provincial form from Revenu Québec, TP-1015.3-V, on top of the federal TD1.
How often do you have to redo it?
Not every year. The CRA says you only need a new one if something changes your credit amounts. When it does, your employer must have the updated form within 7 days of the change that is reasonably expected to change your credits for the year.
What does the TD1 change on your pay stub?
| Item | 2026 figure |
|---|---|
| Federal basic personal amount, full | $16,452 |
| Net income where it starts to shrink | $181,440 |
| Reduced amount at the top | $14,829 at $258,482 |
| Federal rate on the first bracket, up to $58,523 | 14% |
The basic amount is a credit. It shields the first part of your pay from federal tax, worth 14% of the amount. Add other claims and your employer takes off less per pay. The form for Ontario, British Columbia and the other provinces carries its own amounts, so read the provincial form before you copy numbers across.
Take a worked example. You earn $50,000 in Ontario. The take-home pay calculator shows federal tax of $3,985.14, Ontario tax of $2,288.18, CPP of $2,766.75 and EI of $815, which leaves $40,144.94. That count uses the basic personal amount and the CPP and EI credits only.
Now say you also paid $5,000 of tuition. The tax credits calculator puts the federal saving at $700, or 14% of the $5,000. Claiming it on your TD1 lowers the tax held back during the year. Claiming it at tax time gets the same money back later as a refund.
What if you don’t hand one in?
Your employer still has to deduct tax, but only using the basic personal amount they estimate from your income. You’d get nothing for other credits until you file your return. The CRA page also lists a penalty for an employee who doesn’t provide the form when required, at $25 a day with a $100 minimum and a $2,500 maximum. Don’t count on never meeting it.
So hand it in on your first day. It takes ten minutes.
Mistakes that leave you short in April
The form’s own note says that if your net income will go past $181,440 and you enter the full $16,452, you may owe tax when you file. That’s the main trap for higher earners.
The second is claiming credits that belong to someone else, or claiming the same credit on two TD1s for two jobs. The form has its own instructions for more than one employer, and we haven’t tried to summarize them. Read them before you sign.
Third, a TD1 doesn’t file your taxes. It only sets your withholding. To see where a year of withholding lands you, try the tax refund calculator. On $75,000 of pay in Ontario with $14,000 withheld, it estimates a refund of $1,295.35. And for the employer’s side of the same numbers, the payroll deductions calculator is the place.
Where the numbers come from
The form rules come from the CRA pages for the 2026 TD1 and for employers getting TD1 forms. The basic personal amount and brackets come from the CRA 2026 tax rates page. Our calculators use 2026 federal and Ontario data. We couldn’t read the provincial forms’ amounts from their web pages, so we left those figures out.
Frequently asked questions
Do I fill in a TD1 every year?
No. You need a new one when you start a job or when something changes your credit amounts. Then your employer must have it within 7 days.
Do I send my TD1 to the CRA?
No. Your employer keeps it with your records and does not send a copy to the CRA.
Why are there two TD1 forms?
One is federal and one is for your province or territory. Quebec residents also complete the provincial form from Revenu Québec.
What is the federal basic personal amount on the 2026 TD1?
It is $16,452, and it shrinks for net income between $181,440 and $258,482.
What if I never give my employer a TD1?
The employer deducts tax using only the basic personal amount estimated from your income. You can still claim your other credits when you file.
- How to file your tax return in Canada: steps and dates
What to gather, when your return is due and how to file in Canada, from the first slip to the notice of assessment that closes the year
Information only. This page is general information, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns or offer tax services, and we have no connection with the CRA, Revenu Québec, any government or any company named on this page. Check the figures that matter with an official source or a qualified professional.