Canada · Tax System
Corporate tax, VAT/GST, personal income tax, capital gains, and filing obligations.
AI-drafted, editorially reviewed. Confirm specifics with the official authority.
When this country treats you as a tax resident
CRA evaluates life-centre: home/spouse/dependents/health/license/bank etc. ≥183 days without ties → deemed resident.
- Primary test
- Facts and circumstances
- Day threshold
- 183 days
How days are counted: Residential ties primary; 183-day "sojourner" deemed test secondary
Also makes you resident
- Primary ties: home, spouse, dependents
- Secondary: health card, license, vehicle, bank accounts
Tax authority: canada.ca
Tax residency is decided separately from immigration status — these tests can make you a tax resident whatever visa you hold, and leaving a visa behind does not by itself end them.
Count your days against this rule Compare residency tests across countries
Canada taxes federal and provincial income (Canada Revenue Agency plus provincial rates) and levies GST/HST on most goods and services. Tax residents are taxed on worldwide income; your province of residence affects your combined rate.
Taxes are administered by the Canada Revenue Agency (CRA). Corporations pay federal and provincial corporate income tax, and GST/HST applies to most goods and services.
- The federal general corporate income tax rate is 15% after the federal abatement; provinces add their own rate.
- GST is 5% federally; some provinces combine it with provincial tax as HST.
- Filing and payment are handled through the CRA's My Business Account.
- 1
Determine your residency status
Work out your Canadian residency for tax: residents are taxed on worldwide income, non-residents on Canadian-source income; the CRA assesses residential ties.
- 2
Get a tax number
Obtain a Social Insurance Number (SIN); businesses get a Business Number (BN) from the CRA.
- 3
Understand the taxes that apply
Identify federal and provincial income tax, GST/HST, payroll deductions (CPP/EI) and, for corporations, corporate tax.
- 4
Have tax withheld or pay instalments
Employers withhold tax and CPP/EI; the self-employed and others may pay quarterly instalments.
- 5
File your returns
File the T1 personal return (usually due 30 April) or the T2 corporate return; report foreign property over the threshold (Form T1135).
- 6
Pay, keep records and get advice
Pay any balance, keep records for six years, and get advice for cross-border and provincial matters.
- Residency status determined (residential ties)
- Social Insurance Number (SIN) / Business Number (BN)
- Applicable taxes identified (federal + provincial + GST/HST + CPP/EI)
- Withholding or quarterly instalments
- T1 (or T2 corporate) return filed by the deadline
- Foreign-property reporting (T1135) if applicable
- Records kept for six years
- Advice for cross-border/provincial matters
- Canada Revenue Agency (CRA)
Federal tax authority — corporate tax, GST/HST, filing.
Frequently asked questions
Am I taxed on worldwide income in Canada?
Tax residents are taxed on worldwide income; non-residents are generally taxed only on Canadian-source income.
What is GST/HST?
A federal Goods and Services Tax, combined with provincial sales tax as HST in some provinces, applied to most goods and services.
How do provincial taxes work?
Each province sets its own income-tax brackets on top of federal rates, so your total rate depends on where you live.
Government portals
- Government of Canada — Canada's federal service portal — immigration, taxes, benefits, and travel info
- Immigration, Refugees and Citizenship Canada — Express Entry, Provincial Nominee Program, work/study permits, and PR card applications
- Canada Revenue Agency (CRA) — T1 personal tax returns, corporate taxes, GST/HST, and benefit applications (CCB)