Newcomer Tax Estimator

by J. Alabi
Newcomer Tax Estimator — LandedAndLiving.ca
LandedAndLiving.ca  ·  Free Newcomer Tools

Newcomer Tax Estimator

Your first Canadian tax return, simplified. Built specifically for newcomers — partial-year residency, foreign income, CPP/EI credits, and the benefits most people miss.

2025 tax year — the return you file in spring 2026. Relevant through the June 15, 2026 self-employed deadline. After that, useful as a planning estimate for newcomers arriving in 2026.
Step 1 — Your Situation
Your province on December 31, 2025
Your residency start date — not your PR card date
First-time filer
You may need to print and mail your first return — you cannot set up a CRA My Account until after your first return is assessed. After year one, everything moves online via NETFILE.
Step 2 — Your Income
Canadian income — taxed by Canada

Money earned in Canada after your arrival date. This is what Canada taxes you on.

Foreign income — declared only, not taxed

Money earned abroad before you arrived. Declared to the CRA but not taxed. Used for benefit calculations only.

Employment income from your T4 — after your arrival date only
Optional. Convert your foreign currency to CAD using the exchange rate on your arrival date. Use the Bank of Canada daily rate. Affects GST/HST eligibility only — not taxed.
Box 22 of your T4 slip. Enter 0 if no employer or unsure.
Affects GST/HST credit and Canada Child Benefit amounts
CPP & EI contributions — from your T4
CPP Contributions
Canada Pension Plan. Your employer deducts this from every paycheque to fund your future retirement pension. Both you and your employer contribute equally. Found in Box 16 of your T4. Enter 0 if you had no Canadian employer or arrived very late in the year.
2025 max employee contribution: $4,034.10
EI Premiums
Employment Insurance. Deducted from your paycheque to fund temporary income support if you lose your job. Found in Box 18 of your T4. Enter 0 if you had no Canadian employer, are self-employed, or arrived very late in the year.
2025 max employee premium: $1,077.48
Step 3 — Credits You May Qualify For

Most newcomers miss at least two of these — leaving real money uncollected. Check everything that applies to you.

GST/HST Credit
Tax-free quarterly payment. Newcomers must apply using Form RC151 — it is not automatic.
Canada Child Benefit
Tax-free monthly payments for children under 18. Apply using Form RC66. Not automatic — you must apply.
Medical Expenses
Dental, vision, prescriptions, private insurance premiums. Keep all receipts from the year.
Childcare Expenses
Daycare, day camps, nannies, after-school programs. Must have official receipts with provider's name and SIN.
Tuition Credit
Canadian educational institutions only. Your school provides a T2202 slip. Unused credits can be carried forward to future years.
RRSP Contributions
Reduces your taxable income directly. You receive a contribution receipt from your financial institution. Contribution room is based on prior year's income.
Estimated refund
$0
How your estimate was calculated
Important — Please Read Before Filing

This tool provides an estimate only and is not professional tax advice. It covers the 2025 tax year (filed in spring 2026) and is relevant through the June 15, 2026 self-employed deadline. After that it serves as a planning estimate for newcomers arriving in 2026. CPP contributions are treated as a 15% non-refundable credit throughout (a minor simplification for higher earners with CPP2). Always file using CRA-certified software such as TurboTax, Wealthsimple Tax, or H&R Block — or visit a free CVITP volunteer clinic where trained volunteers file for you at no cost.

Learn more in our complete newcomer tax guide — including all your free filing options.