Immigrating to Canada comes with many new changes – you might need to pack an entirely new wardrobe if you’re coming from a warmer climate or brush up on your English or French speaking skills before you arrive. Moving to a new country also means getting adjusted to using a new currency and paying taxes in a different way than you’re used to. Learn what you need to know about banks and taxes in Canada to help you prepare.
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What do I need to know about Canadian taxes?
Navigating the Canadian banking and tax system as a new resident can be a bit overwhelming, but it’s important to understand the basics before settling down in Canada. Here is a quick overview of what you should know about banks and taxes:
Get a Social Insurance Number
A Social Insurance Number (SIN) is a nine-digit number that is personalised for you. SINs are important to have for getting a job, paying taxes, and receiving benefits from Canada’s social service programs. All Canadian citizens, permanent residents, and temporary residents must apply for a SIN to work or get government benefits. SINs can also be used as identification for when you need to open a bank account or need to conduct financial transactions.
Check your province’s tax requirements
Tax laws and banking procedures can vary by province. If you have already moved to Canada or know what province you’ll be moving to, be sure to do some research on your province’s tax requirements. Many financial institutions in Canada offer services that are specifically tailored to newcomers, so don’t hesitate to ask a tax specialist or a representative at a bank for assistance in setting up your finances and understanding the Canadian tax system.
Know when to file taxes
The Canadian tax year runs from January 1st to December 31st. Newcomers must file a tax return with the Canada Revenue Agency (CRA) by April 30th of the following year; if you or your spouse are self-employed, you can file your taxes by June 15th. Most Canadians use electronic tax filing tools to make the process easier. If you are having trouble with your taxes, you can get help for free by visiting a free tax clinic.
Research your banking options
Canada has various banking options for newcomers: you can choose from major banks, credit unions, and online banks. Scotiabank, Bank of Montreal (BMO), and TD Canada Trust are some popular options for Canadian residents. Research and compare bank account types and fees to find the one that best suits your needs.
Understanding how tax credits and deductions work can help you and your family with finances. If qualified, you can apply for tax deductions like Canada child benefit (CCB), provincial and territorial benefits, Canada caregiver credit, home accessibility tax credit, and more through the CRA website.[1] Newcomers in particular can benefit from the moving expenses deduction, which can be used to deduct eligible moving expenses for qualified residents.
Use Western Union to make a quick money transfer
If you need to send money to family overseas, Western Union Canada has your back. Western Union makes it easy to send and receive money whenever you need. You can send money online, in the money transfer app, or find an agent location to make your transaction.
