Canadian taxes in plain words
Updated 2026-10-15English original
Official source: Canada Revenue Agency · Newcomers to Canada ↗
Published 2026-10-15Last checked 2026-10-15Language English
If this page and the official page differ, the official page is right.
Income tax
Your employer takes income tax, CPP (pension) and EI (employment insurance) from each paycheque. You file a tax return each spring for the year before.
File even with low income
Many benefits, such as the GST/HST credit and the Canada child benefit, depend on your tax return. File every year, even in your first year.
Sales tax
Prices in stores usually do not include sales tax. GST or HST, and provincial sales tax in some provinces, is added when you pay.
Estimate your pay
Try our take-home pay calculator. It shows an estimate, not your exact pay.
General information, not legal advice. Every guide links to the official source and shows when we last checked it. For your own case, use IRCC’s tools or a licensed consultant.