# New to Canada: what changes for your taxes > What changes for your taxes when you are new to Canada: residency, world income, your first return, benefits and the foreign income rules Moving countries means leaving one tax system and learning another, and the first year is the hardest. The good news is that Canada's rules start from one simple idea: residency. ## When do you become a resident? Tax residency here depends on your ties to Canada, not your visa or your passport. A home, a spouse or children who live with you, and your belongings all count. Smaller ties, like a bank account, a driver's licence or provincial health coverage, add weight too. Most people who arrive to settle become residents on their arrival date. If you're unsure, the CRA has a form to ask for its opinion. The CRA's [page for newcomers](https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/newcomers-canada-immigrants.html) lists the ties it looks at. From that date you're taxed on your income from all over the world. Before it, you only owe tax on Canadian income. ## What does your first return look like? You file by April 30 of the next year, like everyone else. You'll need a Social Insurance Number, and your slips from the months you worked here. Income earned abroad after your arrival goes on the return too, converted into Canadian dollars with an exchange rate. The [rates page](https://tax-services.ca/rates-and-markets) shows today's Bank of Canada figures, but for a past date you'll want the rate on that day. The CRA's newcomer page says to use the Bank of Canada rate in effect on the date you received the income. You may also be able to claim a credit for tax you already paid to another country, so you aren't taxed twice on the same money. Some credits are prorated for the part of the year you lived here. Don't worry about guessing: the CRA's guide for newcomers explains each one. ## What benefits can you apply for? New residents can apply for the GST/HST credit and, with children, the Canada Child Benefit, using their own forms, even before filing a first return. Both are worked out from your tax return, so even a year with no income is worth filing. The Canada Child Benefit is tax-free. Estimate them with the [GST/HST credit calculator](https://tax-services.ca/calculators/family-benefits/gst-hst-credit) and the [child benefit calculator](https://tax-services.ca/calculators/family-benefits/canada-child-benefit). ## What about savings accounts and foreign property? TFSA room starts building from the year you become a resident and turn 18, so years you spent abroad don't add room. Try the [TFSA calculator](https://tax-services.ca/calculators/rrsp-retirement/tfsa-calculator) once you're settled. If the cost of your foreign property, such as a bank account or shares held outside Canada, was over $100,000 at any time, you must file an extra form. A few bucks in an overseas chequing account won't trigger it, but a house or a pile of shares back home might, so check before the deadline. ## What mistakes do newcomers make most? Skipping the first return because there was little income is the big one, since it can delay benefits. Another is using today's exchange rate for old income. Keep your arrival date, your foreign slips and a note of the rates you used, and the next year gets much easier. ## Where do you start? Learn the basics in the [guide to how Canadian taxes work](https://tax-services.ca/guides/how-canadian-taxes-work), work out your pay with the [take-home pay calculator](https://tax-services.ca/calculators/payroll-salary/take-home-pay-calculator), then read the [filing guide](https://tax-services.ca/guides/file-your-taxes). ## Before you act on this page You're reading a general overview, and it can't see your slips, your status or your province, so you shouldn'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. --- Source: https://tax-services.ca/life-events/new-to-canada Last updated: 2026-10-07 Independent information site. Not affiliated with the CRA. No services, no guarantee of accuracy. See https://tax-services.ca/disclaimer