Taxes in Canada
Understanding Taxes in Canada: A Guide for Newcomers
Table of Contents
Introduction
Navigating taxes can feel overwhelming when you first arrive in Canada — but with a little knowledge, you’ll be able to manage it smoothly. This guide explains what you need to know about sales taxes, income taxes, and the annual tax return process, with practical tips tailored for newcomers settling in Saskatoon.
Sales Taxes in Canada: PST and GST
When you buy goods or services in Canada, you usually pay two types of sales tax:
| Type of Tax | What It Is | Rate in Saskatchewan |
|---|---|---|
|
GST (Goods and Services Tax) |
Federal tax charged on most goods and services across Canada |
5%
|
|
PST (Provincial Sales Tax) |
Provincial tax charged by Saskatchewan |
6% |
Total: In Saskatoon (and all of Saskatchewan), when you buy most items, you pay 11% in taxes (5% GST + 6% PST).
Important Notes:
- Some items (like groceries, certain medications, and medical devices) are exempt from GST and PST.
- When shopping online, sales tax usually still applies, depending on the retailer’s location and the product.
Income Tax: What You Need to Know
Canada requires all residents (including newcomers) to file an income tax return every year, even if you had no income.
Why filing taxes matters:
- You may be eligible for benefits like the Canada Child Benefit (CCB) or GST Credit.
- Filing on time avoids penalties and ensures you stay in good standing with the government.
- Even students, part-time workers, and people with zero income are expected to file.
- Students can claim certain costs on their tax return.
Important Dates for Taxes
| Event | Timeline |
|---|---|
|
Tax year ends |
December 31 |
|
Tax return filing opens |
Late February
|
|
Deadline for filing taxes |
April 30 every year |
|
Deadline for any tax payments |
April 30 (or interest applies)
|
Tip: It’s better to file early! You might get a refund faster, and you’ll avoid last-minute stress.
What Forms Are Involved?
| Forms | Purpose |
|---|---|
|
T1 General |
Main form for personal tax return.
|
|
T4 Slip |
If you were employed, your employer provides this (shows your income and deductions).
|
|
T5 Slip |
For investment income (like interests from Saving account), if applicable. |
|
RC66 Form |
If you are applying for Canada Child Benefit (CCB).
|
|
T2202 Form |
For claiming tuition and education credits (if you are a student).
|
If you’re employed, your employer must send you your T4 slip by the end of February.
Filing Your Taxes: How to Do It
You have several options:
- File online through certified software (like TurboTax, Wealthsimple Tax, or UFile).
- Hire a tax professional or an accountant.
- Use free tax clinics organized by community organizations like Food Bank and Saskatoon Open Door Society during tax season.
- File by paper mail (less common, slower).
As a newcomer, it’s highly recommended to file electronically — it’s faster, more accurate, and gets you any refund sooner.
Special Notes for Newcomers
- When filing for the first time, you’ll need your Social Insurance Number (SIN).
- You might qualify for these items upon arrival. Saskatoon Open Door Society can help you complete and submit the necessary forms:
- GST/HST Credit (quarterly payments from the government)
- Canada Child Benefit (CCB) if you have children
- Provincial tax credits offered by Saskatchewan
Even if you had no income, filing allows you to access these benefits.
Conclusion
- Understanding and managing taxes is a crucial part of building your new life in Canada.
- Always file your tax return — even with no income — to stay eligible for benefits.
- Keep track of key dates, forms, and your financial documents from the start.
If you ever feel overwhelmed, you can reach out to us or professional accountants in Saskatoon who are available to guide you through your first few tax seasons.
Disclaimer
The information provided in these resources is intended for informational purposes only, and its accuracy is not guaranteed. The Saskatoon Iranian Cultural Association accepts no responsibility for the accuracy of the content or any consequences resulting from the use of the provided information.
These resources are the property of the Saskatoon Iranian Cultural Association and may be freely referenced, provided that a link to the corresponding page on the Association’s website is included.
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