# First job: what changes for your taxes

> What changes for your taxes when you start your first job in Canada: the TD1 form, payroll deductions, the T4 slip and why you should still file

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](https://www.canada.ca/en/revenue-agency/services/forms-publications/td1-personal-tax-credits-returns.html), 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](https://tax-services.ca/calculators/payroll-salary/take-home-pay-calculator) to see your own split, or the [income tax calculator](https://tax-services.ca/calculators/income-tax/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](https://tax-services.ca/guides/file-your-taxes) 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](https://tax-services.ca/guides/how-canadian-taxes-work) explains the brackets, and the [tax calendar](https://tax-services.ca/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](https://tax-services.ca/checklists/documents-for-your-tax-return), the [tax calendar](https://tax-services.ca/tax-calendar) and the [filing guide](https://tax-services.ca/guides/file-your-taxes) close by. Not sure which province's rules apply to you? The [province index](https://tax-services.ca/provinces) lists them all.

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Source: https://tax-services.ca/life-events/first-job
Last updated: 2026-10-08
Independent information site. Not affiliated with the CRA. No services, no guarantee of accuracy. See https://tax-services.ca/disclaimer