Taxes in Canada
Introduction
Navigating the Canadian tax system can seem daunting when you first arrive — but with a bit of knowledge and organization, you'll be able to manage your taxes smoothly.
This guide explains what newcomers in Saskatoon need to know about sales taxes, income taxes, and the annual tax return process, with practical tips to help you start off right.
Sales Taxes in Canada: GST & PST
When you buy goods or services in Canada, you typically pay two types of sales tax:
- GST (Goods and Services Tax):
A federal tax applied to most goods and services across Canada.
Rate in Saskatchewan: 5% - PST (Provincial Sales Tax):
Saskatchewan's provincial tax, charged on most goods and some services.
Rate: 6%
Total in Saskatchewan:
Most purchases in Saskatoon are taxed at 11% (5% GST + 6% PST).
Exceptions:
- Basic groceries, prescription medications, and some medical devices are usually exempt from GST and PST.
- Online shopping often still requires you to pay sales tax, depending on the seller's location and shipping address.
Income Tax: What You Need to Know
Canada requires all residents (including newcomers) to file an income tax return each year — even if you had no income.
Why file taxes?
- You may be eligible for government benefits, such as the Canada Child Benefit (CCB) and GST Credit.
- Filing on time helps you avoid penalties and keeps you in good standing with the government.
- Students, part-time workers, and people with zero income must file to remain eligible for credits and benefits.
- Students can claim tuition and some education costs.
Important Dates for Taxes
- Tax year ends: December 31
- Filing opens: Late February
- Deadline to file and pay: April 30 (after this, interest/penalties apply)
Tip: File as early as possible! This ensures faster processing and any refund owed will arrive sooner.
What Forms Are Involved?
- T1 General: Main form for personal tax returns
- T4 Slip: Issued by your employer (shows your income and deductions)
- T5 Slip: For investment income (interest, dividends)
- RC66 Form: For applying to Canada Child Benefit (CCB)
- T2202 Form: For students to claim tuition and education credits
Your employer must send your T4 slip by the end of February if you were employed.
How to File Your Taxes
You have several options:
- File online using certified software:
- Hire a tax professional or an accountant for personalized help
- Free tax clinics:
- Community Volunteer Income Tax Program (CVITP), local organizations like Saskatoon Food Bank or Saskatoon Open Door Society
- Paper filing (slower, less common)
Recommendation:
For most newcomers, filing electronically is easiest, fastest, and ensures you get any refund as quickly as possible.
Special Notes for Newcomers
- For your first tax return, you'll need a Social Insurance Number (SIN).
- Benefits you may qualify for after arrival:
- GST/HST Credit (quarterly payments)
- Canada Child Benefit (CCB) (monthly if you have children)
- Provincial tax credits in Saskatchewan
- The Saskatoon Open Door Society and other local organizations can help you complete forms and submit your first return.
- Even with zero income, always file to stay eligible for benefits.
Conclusion
Understanding and managing taxes is a vital part of your new life in Canada.
Always file your tax return — even with no income — to keep your eligibility for government benefits.
Track important dates, keep your financial documents, and seek help if you need it.
You can always reach out to us or local tax professionals for assistance, especially during your first tax season in Saskatoon.
For more information, visit the Canada Revenue Agency (CRA) official website.