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How to File Taxes in Canada: Complete Beginner''s Guide

Updated

Filing your taxes in Canada does not have to be complicated. Whether this is your first time or you just want a refresher, this guide walks you through everything step by step.

Before filing, confirm return structure in what a T1 General tax return is and gather documents with how to read your T slips. After submission, manage your account in how to use CRA My Account and read the result in your Notice of Assessment.

Tax filing deadlines

SituationFiling DeadlinePayment Deadline
Most CanadiansApril 30, 2026April 30, 2026
Self-employedJune 15, 2026April 30, 2026
Deceased person (death before Nov)April 30 of following yearApril 30

Late filing penalty: 5% of the balance owing, plus 1% for each full month late (up to 12 months).

What you need before you start

Income slips

SlipWhat it Reports
T4Employment income and deductions
T4APension, annuity, or other income
T4EEmployment Insurance benefits
T5Investment income (interest, dividends)
T3Trust income (mutual fund distributions)
T5008Securities transactions (buy/sell)
T2202Tuition amounts

Most slips are available in your CRA My Account by mid-March.

Receipts and records

  • RRSP contribution receipts
  • Charitable donation receipts
  • Medical expense receipts
  • Moving expense receipts
  • Home office expenses (if applicable)
  • Child care expense receipts

Previous year Notice of Assessment

This shows your RRSP deduction limit, any unused tuition amounts, and other carry-forward balances.

How to file your taxes (step by step)

Step 1: Choose your filing method

MethodCostBest For
Wealthsimple TaxFreeMost Canadians (pay what you want model)
StudioTaxFreeDesktop users
TurboTax$0–$50+Those wanting guided experience
H&R Block software$0–$40+Those wanting in-person support option
Accountant$100–$500+Complex situations (self-employed, rental income)

Step 2: Create a CRA My Account

If you do not already have one, register at canada.ca. This lets you:

  • Auto-fill your tax slips directly into your software
  • Check your RRSP and TFSA contribution room
  • View past returns and notices of assessment
  • Set up direct deposit for refunds

Step 3: Enter your information

Start with personal information (name, address, birth date, marital status), then enter your income slips. Most software imports slips from CRA automatically via Auto-fill.

Step 4: Claim deductions and credits

The software will prompt you for common items. Key deductions and credits to look for:

Deductions (reduce taxable income):

  • RRSP contributions
  • Child care expenses
  • Moving expenses (if moved 40+ km for work or school)
  • Employment expenses (if T2200 from employer)
  • Union or professional dues

Credits (reduce tax owing):

  • Basic personal amount (automatic)
  • Medical expenses
  • Charitable donations
  • Tuition amounts
  • Disability tax credit
  • First-time home buyer’s credit
  • Climate Action Incentive (automatic in most provinces)

Step 5: Review and NETFILE

Review your return for errors, then submit electronically using NETFILE. You will receive a confirmation number immediately.

Step 6: Get your refund

If you are owed a refund, it typically arrives within 2 weeks (direct deposit) or 4–8 weeks (cheque). If you owe money, pay by April 30 to avoid interest.

Common mistakes to avoid

  1. Forgetting to report all income — The CRA knows about every T4, T5, and T3. Report everything.
  2. Missing deductions — RRSP contributions, medical expenses, and charitable donations are commonly missed.
  3. Not filing when you have no income — File anyway to receive benefits and build contribution room.
  4. Using the wrong marital status — If you moved in with a partner, you may be considered common-law after 12 months.
  5. Not claiming the spousal credit — If your spouse earned little or no income, you can claim a credit.

Free tax filing options in Canada

Many Canadians do not realize they can file taxes for free:

OptionCostWho it is for
Wealthsimple TaxFree (pay what you want)Simple and complex returns
Community Volunteer Income Tax Program (CVITP)FreeFixed/low income, simple situations
CRA File My Return (automated)FreeEligible low-income filers (CRA calls you)
StudioTaxFree up to $0 balanceDesktop users
TurboTax FreeFreeSimple T4-only situations

The CVITP runs from February to April at locations across Canada — community centres, libraries, and non-profits. Find a clinic at canada.ca/cvitp.

What happens after you file

  1. Processing: NETFILE returns are typically processed within 2 weeks of submission. Paper returns take 6–8 weeks.
  2. Notice of Assessment (NOA): CRA issues an NOA confirming the outcome — your refund amount, balance owing, and updated RRSP/TFSA room. It appears in My CRA Account.
  3. Refund: direct deposit refunds arrive within 8 business days after the NOA is issued. Cheque refunds take 4–6 weeks after the NOA.
  4. Balance owing: must be paid by April 30, 2026 to avoid interest. Pay through your bank’s bill payment, CRA My Payment, or by mailing a cheque.

If CRA needs more information: they may issue a letter requesting documents before finalizing your return. Respond promptly and keep the reference number.

Important resources