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Module 2 · 10 min read

Taxes: your key to benefits

Why filing, even with little or no income, pays you back

Why this matters for newcomers

In many countries, taxes are only about paying. In Canada, your tax return is also your application for benefits. The government uses it to decide how much support to send you each month or quarter. If you don't file, the payments stop, even if you earned nothing. For a family with young children, this can mean missing more than $15,000 a year.

$8,157CCB per child under 6, per year (Jul 2026–Jun 2027)
$6,883CCB per child aged 6–17, per year
$38,237Family net income for the full CCB
+25%Groceries and Essentials Benefit increase, from July 2026

Apply as soon as you arrive: you don't have to wait

Newcomers can apply for benefits before filing their first tax return. You'll be asked about your income from all countries for the years before you arrived, so the government can calculate your payments.

Your situationForm to useWhat it covers
No childrenRC151 (can be done online)Canada Groceries and Essentials Benefit and related provincial programs
Children who qualify for the Canada Child BenefitRC66 plus schedule RC66SCHCanada Child Benefit, the Groceries and Essentials Benefit, and provincial programs, all in one application
Children who don't yet qualify for the Canada Child BenefitRC151 (by mail, with proof of birth for each child)Groceries and Essentials Benefit, including amounts for your children

The benefits most newcomer families can receive

Canada Child Benefit (CCB). A tax-free monthly payment for families with children under 18. For July 2026 to June 2027, the maximum is $8,157 a year for each child under 6 and $6,883 a year for each child aged 6 to 17. Families with an adjusted family net income under $38,237 get the full amount; it slowly decreases as income rises.

Canada Groceries and Essentials Benefit. This is the new name (since July 2026) for what used to be called the GST/HST credit. It's a tax-free quarterly payment for people with low and modest incomes, and it was increased by 25% for five years starting in July 2026.

Provincial and territorial benefits. Many provinces add their own child or family benefits, such as the Ontario Child Benefit, and these are usually paid automatically along with the federal ones.

Example: Priya and Daniel

They arrived with two children, aged 3 and 7, and their family income is under $38,237. If they qualify for the maximum Canada Child Benefit, they could receive $8,157 + $6,883 = $15,040 a year, tax-free, about $1,250 a month. They only keep receiving it if both parents file a tax return every year.

Filing your taxes each year

  • The deadline is usually April 30 for the year before. File even if you had no income.
  • Both spouses or partners must file for family benefits to be calculated.
  • Your first return is special: you only report income earned after you became a resident of Canada, and you'll need your date of arrival.
  • Free tax clinics run by volunteers (the Community Volunteer Income Tax Program) help people with modest incomes file for free. Many settlement agencies can connect you.

Newcomer tip

Once you're a resident, Canada taxes your worldwide income, including rent from a property back home or interest on a foreign bank account. If the total cost of your property and investments outside Canada (not counting a home you personally use) is more than $100,000, there is an extra form to file (T1135). Penalties for missing it can be large, so mention any foreign assets to whoever helps you file.

Your next small step

Track it on your first-year checklist →

Learn more

Official, free sources. Always check these for the latest amounts before making a decision.