If you earned income in 2024 and live in Canada, you may need to file a Canadian income tax return this spring. This requirement applies not only to Canadian citizens and permanent residents but also to many temporary residents, including foreign workers, international students, and even some visitors.
Filing taxes in Canada is a legal obligation for those who meet specific criteria. It’s also a crucial step if you plan to apply for Canadian citizenship in the future. For the 2025 tax season, the deadline to file your 2024 income tax return is April 30, 2025.
In this article, we’ll explain:
- Who is considered a resident of Canada for tax purposes;
- Who is legally required to file Canadian income taxes;
- The benefits of filing a tax return, even if it’s not mandatory; and
- How to file your taxes in Canada.
Let’s get started!
Who Is Considered a Resident of Canada for Tax Purposes?
Your tax residency status depends on your ties to Canada. The Canada Revenue Agency (CRA) uses several factors to determine if you’re a resident for tax purposes. These include:
Primary Residential Ties:
- Owning or renting a home in Canada;
- Having a spouse or common-law partner in Canada; and
- Having dependents (children or other family members) in Canada.
Secondary Residential Ties:
- Owning personal property, like a car or furniture, in Canada;
- Having social ties, such as memberships in Canadian organizations;
- Holding financial accounts, like a Canadian bank account or credit card;
- Having Canadian public health insurance;
- Possessing a Canadian driver’s license; or
- Holding a Canadian passport.
Most temporary residents who live in Canada for most of the year are considered residents for tax purposes. If you’re unsure about your status, you can consult the CRA’s guide, Income Tax Folio S5-F1-C1, Determining an Individual’s Residence Status, or call the CRA at 1-800-959-8281 for assistance.
Who Is Legally Required to File Canadian Income Taxes?
If the CRA considers you a resident of Canada for tax purposes, you must file a tax return if any of the following apply to you:
- You owe taxes for the year;
- Your income exceeds $3,500;
- You sold capital property, such as a home or investments;
- You had a taxable capital gain;
- You need to repay Employment Insurance (EI) benefits;
- You withdrew from your Registered Retirement Savings Plan (RRSP) under the Home Buyer’s Plan or Lifelong Learning Plan and haven’t repaid the amount;
- You’re paying EI premiums on self-employment income; or
- You need to repay Old Age Security (OAS) benefits.
Even if none of these situations apply, filing a tax return can still be beneficial.
Benefits of Filing a Tax Return (Even If Not Required)
Filing a tax return can help you access government benefits and credits, even if you don’t owe any taxes. Here are some of the most common benefits:
| Benefit | Who Qualifies | Maximum Annual Benefit |
|---|---|---|
| Canada Carbon Rebate | Individuals 19+ living in most provinces | 380–380–900 (varies) |
| Canada Child Benefit (CCB) | Parents with children under 18 | 7,787(under6);7,787(under6);6,570 (6-17) |
| Canada Workers Benefit (CWB) | Low-income workers 19+ (not full-time students) | 1,590(single);1,590(single);2,739 (family) |
| GST/HST Credit | Individuals 19+ | 519(single);519(single);680 (married) |
These benefits are administered through the tax system, so filing a return is essential to qualify. If you’re a newcomer to Canada, you can apply for some benefits in your first year. In subsequent years, you’ll need to file a tax return to continue receiving them.
How to File Your Canadian Income Tax Return
Filing your taxes in Canada is straightforward. You have two main options:
- Paper Filing: Complete your tax return manually and mail it to the CRA.
- Online Filing: Use tax software to prepare and submit your return electronically.
Most Canadians choose online filing because it’s faster and more convenient. You can use free or paid tax software, depending on your needs. If you’re unsure how to file, you can:
- Hire a professional tax preparer; or
- Visit a volunteer tax clinic for free assistance.
Filing your taxes accurately is important to maximize your benefits and ensure you don’t owe more than necessary.
Why Filing Taxes Matters
Filing your taxes is more than just a legal requirement—it’s a way to access financial benefits and contribute to Canada’s public services. Whether you’re a temporary resident or a long-time Canadian, understanding your tax obligations is key to staying compliant and making the most of your finances.
If you need help with your taxes or have questions about your residency status, consider scheduling a free consultation with an immigration professional.
