Your First Year in Canada: How to File Your Tax Return

Part-year residents, whether to report income from before you landed, and the credits you can claim

Scott Tang, CPAUpdated 2026-11-052026 rules5 min read

In the year you land, you are a part-year resident: you report your worldwide income from after you become a resident in Canada; money you earned abroad before that isn't taxed in Canada, but you need to state it clearly on your return (it is used for benefits). Many newcomers have little or no income in their first year, and we still recommend filing — filing is a legal obligation when you have tax to pay; you can apply for the Canada Child Benefit and the CGEB for the first time once you qualify, but after that they continue only if you file a return every year.

Part-year

In the year you land, you are taxed on your worldwide income from the day you become a resident; before that, only on certain Canadian-source income

April 30, next year

If you land in 2026, file your 2026 return by April 30, 2027; the budget of November 5, 2026 proposes moving it to May 15 from the 2027 taxation year (not yet law)

Prorated by days

The basic personal amount and other credits are generally prorated by the number of days you lived in Canada

File even with no income

Benefits depend on filing every year; resident spouses both need to file, and a non-resident spouse's income is stated as the rules require

Splitting your income before and after landing

Item	Before you become a resident	After you become a resident
Foreign salary, rent and interest	Not taxed in Canada, but you report the amount (used to calculate benefits and credits)	All included in income; tax paid abroad can be credited
Canadian income	Canadian income for the period you were a non-resident follows the non-resident rules	Included in income
Assets	Cost reset to market value on the day you land	Later increases in value are reported when you sell

What to do in your first year

1
Your residency date
Enter it on the first page of your return
2
Report income after landing
Worldwide income, converted to Canadian dollars
3
State pre-landing income
Worldwide income before landing, used for benefits and credits
4
Apply for benefits
Canada Child Benefit, CGEB, Ontario benefits
5
Keep asset valuations
You'll need them for the T1135 in your second year

Benefits you can get

Benefit	How to apply Newcomers	What to watch
Canada Child Benefit (CCB)	✓Apply with Form RC66, attaching RC66SCH to show your status and your income before you landed	◐You must live with the child and be the primary caregiver; you or your spouse must be a citizen, permanent resident, protected person or similar (temporary residents generally must have lived in Canada for the previous 18 months and hold a valid permit in the 19th month); your spouse's worldwide income must also be reported
Canada Groceries and Essentials Benefit (CGEB, formerly the GST/HST credit)	✓In the year you land, apply with Form RC151; if you also apply for the Canada child benefit with RC66, you may need to file both (follow the CRA's requirements for that year)	◐Assessed automatically from your return every year after that
Ontario Trillium Benefit (OTB)	✓Assessed when you file; complete Form ON-BEN for the rent and property tax parts	◐The sales tax credit depends on income and family size; the energy and property tax credits also depend on rent or property tax
Canada workers benefit (CWB)	✕Part-year residents generally don't qualify	◐You usually have to be a Canadian resident for the whole year; there are also restrictions for full-time students and others

Canada Child Benefit (CCB)

📝 How to apply: ✓Apply with Form RC66, attaching RC66SCH to show your status and your income before you landed
📅 What to watch: ◐You must live with the child and be the primary caregiver; you or your spouse must be a citizen, permanent resident, protected person or similar (temporary residents generally must have lived in Canada for the previous 18 months and hold a valid permit in the 19th month); your spouse's worldwide income must also be reported

Canada Groceries and Essentials Benefit (CGEB, formerly the GST/HST credit)

📝 How to apply: ✓In the year you land, apply with Form RC151; if you also apply for the Canada child benefit with RC66, you may need to file both (follow the CRA's requirements for that year)
📅 What to watch: ◐Assessed automatically from your return every year after that

Ontario Trillium Benefit (OTB)

📝 How to apply: ✓Assessed when you file; complete Form ON-BEN for the rent and property tax parts
📅 What to watch: ◐The sales tax credit depends on income and family size; the energy and property tax credits also depend on rent or property tax

Canada workers benefit (CWB)

📝 How to apply: ✕Part-year residents generally don't qualify
📅 What to watch: ◐You usually have to be a Canadian resident for the whole year; there are also restrictions for full-time students and others

Benefits are all based on "family net income". If your spouse is still abroad and doesn't file a Canadian return, you still need to provide your spouse's worldwide income; otherwise your benefits may be stopped.

Points to watch

Credits are generally prorated by days
The basic personal amount and other credits are prorated by the number of days after you land. If nearly all of your income before landing came from Canada, you can claim them in full; see the CRA for the rules.
Don't miss foreign income after landing
If you are still receiving salary or rent from China, report it as well and claim the foreign tax credit.
No T1135 in the first year
From the second year, it depends on whether you are over $100,000. See "Your First Year as a Tax Resident: Do You Need to File the T1135?" in this series.
Usually no RRSP room in the first year
RRSP room is based on your earned income (as defined) for the previous year, so you usually don't have any in your first year. TFSA room starts in the year you land.

How Sheng Qian CPA can help

Getting your first return right
The residency date, income before and after landing and prorated credits, all dealt with together.
Benefit applications at the same time
Canada Child Benefit, CGEB and Ontario benefits, with returns for you, your spouse and your family arranged together.
Groundwork for later years
We build your landing cost schedule and your list of foreign assets at the same time. For fees, see "What Sheng Qian CPA Can Do for Newcomers and People Leaving Canada: Support on Arrival and on Departure" in this series.

Sources

Disclaimer

This article is general information only and is not tax advice. Everyone's situation is different; please consult a CPA about your specific arrangements. Service fees are as set out in our written quote.