How much tax will I pay in Canada?

Your Social Insurance Number (SIN) is your personal number for work, tax and benefits, a bit like a UK National Insurance number. Apply for it as soon as you land. Then you pay income tax twice over: to the federal government and to your province, plus pension and unemployment insurance contributions.

Getting your SIN

You apply to Service Canada online, by post or in person. It is free. Online is the fastest route: Service Canada says about 5 business days if everything is complete, and you can see the number in your My Service Canada Account.

• Have your passport and immigration document (work permit, or confirmation of permanent residence or PR card) ready
• If you are a temporary resident, your SIN starts with 9 and expires on the same day as your permit. When you renew your permit, ask Service Canada to update the SIN expiry date
• Give your SIN to your employer when you start. Otherwise, be careful who you give it to
• You can’t file your tax return online without a SIN

How Canadian income tax works

Unlike the UK, where the tax year runs from April, Canada’s tax year is the calendar year, 1 January to 31 December. Your employer takes tax from each payslip based on the TD1 forms you fill in when you start: the federal TD1, plus your province’s form if you claim more than the basic amount. In Quebec you also fill in Quebec’s own form, and you file a separate Quebec tax return with Revenu Québec as well as the federal one. Quebec residents get a 16.5% reduction (the Quebec abatement) on their federal tax.

Everyone gets a federal basic personal amount: in 2026, the first C$16,452 or so of income is effectively free of federal tax (it shrinks for high earners). Provinces have their own basic amounts. Use the UK vs Canadian pay calculator to see your take-home pay.

Federal tax rates for 2026

2026 is the first full year at the lower 14% starting rate. The bands rise with inflation each January. Check the CRA’s indexation page for 2027

Provincial tax rates for 2026

Provincial tax is added to federal tax, and both are charged band by band, as in the UK. So moving from Calgary to Montreal on the same salary can change your take-home pay a lot.

CPP, QPP and EI

Instead of National Insurance, you pay into the Canada Pension Plan (CPP) and Employment Insurance (EI). Quebec runs its own Quebec Pension Plan (QPP) and parental insurance plan instead.

Your employer pays the same CPP, and 1.4 times your EI. See Pensions and savings in Canada.

Your first tax return

You become a Canadian tax resident when you set up significant ties, such as a home, a partner or children in Canada. From that date you are taxed on your worldwide income, including UK interest, rent and ISA income (see Moving money and Do I still pay UK tax?). Your first return is for part of a year: you enter your date of entry, and you tell the CRA your net world income for the months before you arrived, so it can give you the right share of tax credits.

• Most people file by 30 April for the year before (30 April 2027 for 2026)
• If you or your partner are self-employed, the deadline is 15 June, but any tax owed is still due on 30 April
• Register for CRA My Account to see your returns, notices and benefit payments online

Benefits you can claim when you arrive

You don’t have to wait for your first return. As a new resident, apply for the GST/HST credit, now called the Canada Groceries and Essentials Benefit, on form RC151 (there is an online version). If you have children under 19, apply for the Canada Child Benefit (CCB) on forms RC66 and RC66SCH instead: these cover the CCB and the groceries benefit together. Send proof of birth for children born outside Canada.