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Whether money is taxable in Canada depends on what it is and who paid it. Wages, tips, business and rental income, interest, EI, CPP and OAS are taxable, while gifts, inheritances, TFSA withdrawals, lottery winnings and the Canada Child Benefit are not. Search the table below for anything you received, such as “gift” or “tips”. These are the general rules, so your own situation can differ.
Short answer: Most income is taxable. Gifts, TFSA withdrawals, lottery winnings and most family benefits are not.
Is my income or payment taxable in Canada?
The table gives the usual answer for each type of income or payment, with a note on the catch that most often trips people up.
| What you got | Taxable? | Notes |
|---|---|---|
| Salary, wages and bonuses | Yes | Reported on a T4 |
| Tips | Yes | Report them even if no slip shows them |
| Self-employment income | Yes | After business expenses |
| Rental income | Yes | After eligible rental expenses |
| Interest from a bank account | Yes | Even if it is small |
| Dividends from Canadian companies | Yes | With a gross-up and a dividend tax credit |
| Capital gains on stocks or property | Partly | 50% of the gain is included in income |
| Sale of your principal residence | Usually no | You still report the sale on your return |
| TFSA withdrawals | No | Withdrawals add back room next year |
| TFSA growth and interest | No | Inside the account only |
| RRSP withdrawals | Yes | Tax is withheld at source and the rest is due at filing |
| FHSA qualifying withdrawal for a first home | No | Other withdrawals are taxable |
| Employment Insurance benefits | Yes | Including maternity and parental benefits |
| CPP and OAS | Yes | OAS can be clawed back at high income |
| Guaranteed Income Supplement | No | Not taxable income |
| Canada Child Benefit | No | It is based on your income, but it is not income |
| GST/HST credit | No | Not taxable |
| Workers compensation | Reported, then deducted | It shows on the return but nets out |
| Social assistance | Reported, then deducted | It shows on the return but nets out |
| Gifts from family | No | The recipient pays no tax on a gift |
| Inheritance | No | The estate may owe tax, and later growth on assets you inherit is yours to report |
| Life insurance payout | No | Usually tax-free to the beneficiary |
| Lottery winnings | No | Interest you earn on the money afterward is taxable |
| Student loans and student grants | No | Scholarships are mostly exempt for full-time students |
| Tax refund | No | It is your own money coming back |
| Child support received | No | The payer cannot deduct it either |
| Spousal support received | Yes | The payer can usually deduct it |
| Crypto gains | Yes | Usually as capital gains, or as business income if you trade often |
| Severance pay | Yes | Taxed as employment income |
| Moving cost paid by your employer | Usually no | If it is a reasonable reimbursement |
Why does the answer sometimes depend on the situation?
In Canada the same dollar can be treated differently depending on who pays it, why, and which account it sits in. A TFSA withdrawal is tax-free and an RRSP withdrawal is taxable. Lottery winnings are tax-free, but the interest you earn on them afterward is taxable. A home you lived in usually sells without tax, while a gain on other property is a capital gain and 50% of it is included in income. When in doubt, check the CRA page for that item or ask a licensed professional.
Do you have to report tips that are not on your T4?
Yes. The CRA’s page for line 10400, other employment income, says to report tips, gratuities and occasional earnings that may not be shown on your T4 slip. Tips that are included in box 14 of your T4 are part of your employment income on line 10100. The page on tips goes into more detail.
Do you report the sale of your home if it is tax-free?
Yes. Selling your principal residence is usually tax-free in Canada, but you still report the sale on your return. The CRA’s page on line 12700, taxable capital gains, has a section on the principal residence that covers which homes qualify and how to designate one. The principal residence gain calculator and the capital gains tax calculator give a rough estimate.
Where can you check a specific payment?
We have separate pages for the questions people ask most: TFSA withdrawals, gifts, lottery winnings and crypto. To see what taxable income does to your bill, use the income tax calculator.
Where does this information come from?
It comes from the public pages of the Canada Revenue Agency and other open sources, 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
Are gifts taxable in Canada?
No. In Canada the person who receives a gift pays no tax on it. Gifts from family are not income for the recipient. For large gifts or gifts of property, read our page on gifts or check the CRA before you decide.
Is a TFSA withdrawal taxable?
No. Withdrawals from a TFSA are not taxable, and neither are growth and interest earned inside the account. The amount you withdraw is added back to your contribution room next year, so check your CRA account before you put it back.
Do I have to pay tax on tips in Canada?
Yes. Tips are taxable even when no slip shows them. The CRA says to report tips, gratuities and occasional earnings that are not on your T4 slip on line 10400 of your return.
Is the sale of my house taxable?
Usually no. Selling your principal residence is generally tax-free in Canada, but you still report the sale on your return. A gain on other property, such as a rental, is a capital gain, and 50% of it is included in your income.
Are lottery winnings taxable in Canada?
No. Lottery winnings are not taxable income in Canada. Interest or investment income you earn on the money afterward is taxable, so keep a record of what the winnings earn once they sit in an account.