Working in Canada as a foreign national brings unique opportunities—and unique tax obligations. As we enter the 2026 tax season, several landmark changes have come into effect, including the new 14% middle-class tax rate and updated Basic Personal Amounts.
Whether you are here on a Temporary Foreign Worker (TFW) permit, an IEC working holiday, or a seasonal agricultural visa, filing your taxes correctly is the only way to claim your hard-earned refunds. This guide breaks down everything you need to know for your 2026 filing.
2026 Tax Rates & Brackets: The New 14% Relief
The biggest news for 2026 is that the lowest federal tax rate is now 14%. Before it was higher. This change helps people with lower and middle incomes pay less tax.
2026 Federal Income Tax Brackets
| Taxable Income (Federal) | 2026 Tax Rate |
|---|---|
| First $58,523 | 14% (New for 2026) |
| $58,523 – $117,045 | 20.5% |
| $117,045 – $181,440 | 26% |
| $181,440 – $258,482 | 29% |
| Over $258,482 | 33% |
2026 Federal Indexing Factor (2.0%)
The government increased all brackets by 2% because of inflation. This means if your salary went up only because prices are higher, you do not pay extra tax.
Basic Personal Amount (BPA)
For 2026, the maximum Basic Personal Amount is $16,452. This is money you can earn without paying any federal tax. If your total income is less than $16,452, you probably owe no federal tax.
Determining Your Residency Status
Your tax residency status is not the same as your visa or immigration status. The Canada Revenue Agency (CRA) looks at different things. This is the most important step when you file taxes.
The Three Main Categories
- Non-resident for tax purposes This is usually for people who stayed in Canada less than 183 days in 2025 and have no strong ties (like a home, family, or bank accounts in Canada). You only pay tax on money you earned in Canada.
- Deemed resident If you stayed 183 days or more in 2025 but have no significant ties to Canada, the CRA may treat you as a resident.
- Factual resident You are a factual resident if you have strong ties to Canada. Examples: you own or rent a home here, your spouse or children live with you in Canada, or you have important social and economic connections.
Essential 2026 Forms & Slips
To file your taxes, you need to collect important papers. In 2026, the CRA has a new “SimpleFile” service for some low-income people. It fills the form for you. But most foreign workers must get these documents themselves:
- T4 Slip Your employer must give you this slip by March 2, 2026. It shows your total earnings and how much tax was already taken from your pay.
- Form TD1 2026 You filled this form when you started your job. It tells your employer how much tax to take out each time you get paid.
- Form T1248 (Schedule A) This form asks questions about your residency status. You must fill it if you are not sure if you are a resident or non-resident.
- Form T1261 If you do not have a Social Insurance Number (SIN), use this form to apply for an Individual Tax Number (ITN). You need a number to file taxes.
Deadlines & Critical Dates 2026
If you miss these dates, you may get a penalty of 5% or more. Put these dates on your calendar:
- February 23, 2026: CRA NETFILE opens. This is the first day you can file your 2025 taxes online.
- March 2, 2026: Last day for employers to give T4 slips. Also last day to put money in RRSP for 2025.
- April 30, 2026: Main deadline to file your tax return and pay any tax you owe.
- June 15, 2026: Deadline for self-employed people to file (but you still must pay any tax by April 30).
Deductions & Credits: Get Your Money Back
Many foreign workers have too much tax taken from their pay. You can get some money back by claiming these credits and deductions:
- Canada Employment Amount (CEA) You can claim up to $1,482. This helps pay for work things like uniforms, tools, or home office supplies.
- GST/HST Credit If your income is low or medium, you can get tax-free money every three months. You must file a tax return even if you earned no money.
- Moving Expenses If you moved more than 40 km to start a job in Canada, you can deduct costs like travel, hotels, and storage.
- Canada Child Benefit (CCB) If you have children under 18 and you have lived in Canada for at least 18 months, you may get monthly payments.
Pro-Tip for 2026
Make sure your mailing address is correct. In 2026, the CRA has stricter rules. If the address is wrong, your refund cheque can be delayed for many weeks.
FAQ: Frequently Asked Questions
My SIN starts with a ‘9’, can I still file?
Yes! A SIN that starts with ‘9’ is for temporary residents. It is okay to use for tax filing.
I worked in two different provinces. Where do I file?
ou file in the province where you lived on December 31, 2025.
Do I have to report my income from my home country?
Yes, if you are a factual or deemed resident, you must report all your income from everywhere in the world. If you are a non-resident, you only report income from Canada.
Would you like me to draft a “Step-by-Step 2026 Paper Filing Checklist” specifically for newcomers who cannot use the online My Account service yet?
Disclaimer: This article is only for information and learning. Please check all details with a licensed Canadian tax professional or the official Canada Revenue Agency (CRA) website before you make any decisions about your taxes.