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Fill in a TD1 form on your first day. Your employer takes income tax, CPP and EI off every paycheque, and you'll get a T4 slip by the end of February. File a return even with a small income, because you may get tax back.
Your first paycheque rarely matches the number in the offer, and a few forms you’ve never seen start to matter. None of it is hard once you know what each one does.
What do you sign on day one?
You’ll fill in a TD1 form, so your employer can work out how much tax to take off. You’ll also give your Social Insurance Number and your bank details. Don’t skip the TD1, because without it your employer may take more tax than you owe. The CRA keeps the current forms on its TD1 personal tax credits returns page, and your employer usually hands you one anyway.
Where does the money go?
Three things come off each cheque: income tax, CPP and EI. CPP and EI don’t depend on how much you earn in the way income tax does, because each has a rate and a yearly ceiling. Use the take-home pay calculator to see your own split, or the income tax calculator for the full year.
Every person gets a basic personal amount, which is why a small income often pays little or no income tax. It’s $16,452 federally for most people in 2026. So a student who earns $12,000 over the summer owes no federal income tax on it, and any tax your employer held back can come back as a refund. CPP still applies, though, at 5.95% on the part above $3,500, which works out to about $505.75 on that $12,000 (8,500 x 0.0595).
When do you file?
Your employer sends a T4 slip by the end of February, and most people file by April 30. Filing even a small income can get tax back, so it’s usually worth doing, even when you think you earned too little. See the filing guide for the steps.
What do first-timers often miss?
Putting the wrong SIN on a form is common, and so is losing the T4 before tax time. Check the slip against your last pay stub, and tell your employer promptly if your address changes.
Where to read more
The guide to how income tax works explains the brackets, and the tax calendar shows the dates to remember.
Before you act on this page
You’re reading a general overview, and it can’t see your slips, your province or your family, so don’t treat it as advice for your own return. If anything here doesn’t match a letter from the CRA, the letter wins.
Stuck? Ask a qualified preparer or the CRA itself, and keep the document checklist, the tax calendar and the filing guide close by. Not sure which province’s rules apply to you? The province index lists them all.
Frequently asked questions
What is a TD1 form?
A form you give your employer so it knows which credits to use when it takes tax off your pay. The basic one is the federal TD1, and some provinces have their own.
Why is my paycheque smaller than I expected?
Your employer takes income tax, CPP and EI off each cheque. The take-home pay calculator shows the split.
Do I have to file a return if I earned very little?
Often it still helps. Filing can bring back tax that was taken off, and it builds the record that some credits and benefits rely on.
When will I get my T4?
Your employer must send it by the end of February for the year before.