Save $2,000 as a new migrant to Canada in taxes

Highlights: New migrants in Canada can save $2000 in taxes

 

• Canada is offering a range of tax credits and benefits to newcomers
• Temporary and permanent migrants can avail of these benefits
• The IRCC has specified certain eligibility requirements for newcomers to start getting paid
• Newcomers in Canada would need a Social Insurance Number (SIN) to receive benefits and credits

 

*Willing to work in Canada? Y-Axis is here to provide complete guidance!

 

Tax benefits for Canadian newcomers

The Government of Canada is offering several tax credits and benefits to both temporary and permanent newcomers. Workers, students, temporary residents, and migrants with "approval-in-principle" from IRCC to live in Canada are eligible to benefit from the tax credits offered by the country.

 

The newcomer status under the Canada Revenue Agency (CRA) is valid for the first year of residence in Canada. CRA offers credits and benefits to new migrants to provide financial support. If they reside in Canada, spouses or common-law partners would be eligible for income tax purposes.

 

*Want to migrate to Canada? Sign up with Y-Axis for end-to-end immigration guidance!

 

Social Insurance Number (SIN) from Service Canada

As a newcomer to Canada, you need a Social Insurance Number (SIN) to start receiving payments. The SIN is a confidential and personal, unique 9-digit number that Service Canada issues.

 

A SIN will help you with:

 

• Receiving credits and benefits
• Working in Canada
• Opening Canadian bank accounts

 

You can apply for a SIN online, via mail, or by visiting the Service Canada Centre. In case the Service Canada fails to provide a SIN to someone, the CRA may issue a Temporary Tax Number (TTN), which can be used to get credits, file taxes, and sign up for CRA's online services.

 

*Looking for jobs in Canada? Avail Y-Axis Job Search Services to get personalized guidance!

 

Tax benefits available in the first year of residence

During the first year of arrival in Canada, a newcomer is not required to do their first tax return before they get the following benefits and credits:

 

GST/HST credit and Canada Carbon Rebate

The Goods and Service Tax or Harmonized Sales Tax (GST/HST) credit allows a concession on the tax paid by new migrants on things they buy.

 

Newcomers would be eligible to apply for tax-free quarterly payment only if:

 

• They are 19 years old or above
• They have a modest or low income

 

Canada Child Benefit (CCB)

Families with a single child under 18 are eligible for a tax-free monthly payment under the Canada Child Benefit (CCB). This payment provides financial support to the family in raising their children.

 

Temporary residents who have been legal residents in Canada for 18 months consecutively and applied for a valid permit during their 19^th month of residence in Canada are eligible to apply to CCB or any related territorial or provincial programs.

 

*Willing to apply for Canada PR? Let Y-Axis help you with the steps!

 

Territorial and Provincial Benefits and Credits

Provinces/Territories	Benefits and Credits
Alberta	Alberta Child and Family Benefit
British Columbia	BC Family Benefit BC Climate Action Tax Credit
New Brunswick	New Brunswick Child Tax Benefit (NBCTB) New Brunswick harmonized Sales Tax Credit (NBHSTC)
Newfoundland and Labrador	Newfoundland and Labrador Child Benefit (and Early childhood nutrition supplement) Newfoundland and Labrador Income Supplement (NLIS) Newfoundland and Labrador Disability Amount (NLDA) Newfoundland and Labrador Seniors’ Benefit
Northwest Territories	Northwest Territories Child Benefit Northwest Territories cost of living offset (NTCOLO)
Nova Scotia	Nova Scotia (NSCB) Nova Scotia Affordable Living Tax Credit (NSALTC)
Nunavut	Nunavut Child Benefit (NUCB) Nunavut Carbon Credit (NCC)
Ontario	Ontario Trillium Benefit (OTB) Ontario energy and property tax credit (OEPTC)  Northern Ontario Energy Credit (NOEC) Ontario sales tax credit (OSTC)  Ontario Child Benefit (OCB) Ontario senior homeowners’ property tax grant (OSHPTG)
Prince Edward Island	Prince Edward Island Sales Tax Credit
Quebec	Quebec Family Allowance
Saskatchewan	Saskatchewan Low Income Tax Credit (SLITC)
Yukon	Yukon Government Carbon Price Rebate – Individuals (YGCPRI)

 

Other credits and benefits

After filing the first tax return, newcomers would be eligible for the following tax benefits and credits:

 

• Canada dental benefit
• One-time top-up to the Canada Housing Benefit (closed as of April 12, 2024)
• Disability Tax Credit (DTC)
• Canada Carbon Rebate (CCR) (formerly the Climate Action Incentive Payment)
• Canada workers benefit
• Child disability benefit
• Canada caregiver credit
• Canada training credit
• Home accessibility tax credit
• Children’s special allowances
• COVID-19 benefits from the CRA

 

*Are you looking for step-by-step assistance for Canada Immigration? Talk to Y-Axis, the leading visa and immigration consultancy in the UAE!

 

For recent immigration updates on Canada, check out Y-Axis Canada Immigration News!