How to Fill Out the TD1 Personal Tax Credits Return Form
By WelcomeAide Team
What Is the TD1 Form?
Quick tip: download the official T2202 first, then fill it while following this guide: Download T2202 form (official CRA).
The TD1 Personal Tax Credits Return is a form you fill out when you start a new job in Canada, or whenever your personal tax situation changes. It tells your employer how much federal tax to deduct from each paycheque. There are actually two TD1 forms: the federal TD1 and a provincial or territorial TD1 (for example, TD1BC for British Columbia, TD1ON for Ontario). You need to complete both.
Think of the TD1 as a way to let your employer know about your personal circumstances — like whether you support a spouse, have dependants, or have a disability — so the right amount of tax is taken off your pay. If you don't fill it out, your employer will only give you the basic personal amount, and you might have too much or too little tax withheld.
When Do You Need to Fill Out a TD1?
- When you start a new job
- When you want to increase the amount of tax deducted (for example, if you have a second job)
- When you want to change your claim amounts because of a life event (marriage, new baby, etc.)
- When the CRA or your employer asks you to fill out a new one
Newcomer tip: You'll be asked to fill out a TD1 on your very first day of work in Canada. Your employer is required to have this form on file. If you're not sure about any section, ask your employer's payroll or human resources department for help.
Where to Get the TD1 Form
You can download the most current TD1 from the CRA website at canada.ca/td1. Your employer may also provide you with a printed copy. Make sure you use the correct year's version.
Step-by-Step: Completing the Federal TD1
Box 1: Basic Personal Amount
Every person in Canada is entitled to a basic personal amount — a base amount of income on which you don't pay federal tax. For 2025, this amount is up to $16,129 (it's adjusted annually for inflation). If your estimated net income for the year will be $177,882 or less, you can claim the full $16,129. If it will be more, there's a formula to calculate a reduced amount.
Newcomer tip: If you arrived in Canada partway through the year, you still claim the full basic personal amount on your TD1 — it is not prorated on this form. The proration happens when you file your annual T1 tax return.
Box 2: Canada Caregiver Amount for Eligible Dependant or Spouse
If you have a spouse, common-law partner, or an eligible dependant who is dependent on you because of a mental or physical infirmity, you can claim an additional amount. The dependant's net income must be below a certain threshold. For 2025, the additional caregiver amount is $2,616.
Box 3: Age Amount
If you will be 65 or older by December 31 of the tax year and your net income is below approximately $44,325, you can claim an age amount of up to $8,790. This phases out as income increases. Most newcomers of working age will skip this box.
Box 4: Pension Income Amount
If you receive eligible pension income (from a registered pension plan, for example), you can claim up to $2,000. This does not include Old Age Security (OAS) or Canada Pension Plan (CPP) payments.
Box 5: Tuition (Full-Time and Part-Time)
If you're attending a qualifying post-secondary institution, you can claim the tuition you'll pay in the year. You'll need your T2202 or TL11A form as proof. Only the portion you'll actually use in the year (not carried forward from a previous year) goes on the TD1.
Newcomer tip: If you're studying in Canada on a study permit and also working, you can claim your tuition here to reduce the tax deducted from your paycheque.
Box 6: Disability Amount
If you have a severe and prolonged impairment in physical or mental functions and a qualified medical practitioner has certified Form T2201 (Disability Tax Credit Certificate), you can claim the disability amount of $9,872 (2025). This must be approved by the CRA first.
Box 7: Spouse or Common-Law Partner Amount
If your spouse or common-law partner's net income is expected to be less than the basic personal amount ($16,129 for 2025), you can claim the difference. For example, if your spouse will earn $5,000, you can claim $16,129 − $5,000 = $11,129.
Newcomer tip: If your spouse arrived with you but has not yet found employment, you may be able to claim a significant amount here, which will reduce the tax deducted from your pay.
Box 8: Amount for an Eligible Dependant
If you are single (or separated) and support a dependant who lives with you — such as a child under 18 or a parent/grandparent — you can claim this amount. You cannot claim both this and a spouse amount.
Box 9: Canada Caregiver Amount for Dependant(s) Age 18 or Older
If you support a dependant age 18 or older (other than your spouse) who has a physical or mental infirmity, you can claim the caregiver amount.
Box 10: Amounts Transferred from Dependant
If your dependant (like your child) has unused tuition or disability amounts, they may be able to transfer a portion to you.
Box 11: Total Claim Amount
Add up all the amounts from boxes 1 through 10. This total tells your employer the total personal tax credits to consider when calculating your tax deductions.
Additional Sections on the Back of the TD1
More Than One Employer
If you have more than one job at the same time, you should only claim the basic personal amount on the TD1 for one employer. For your other job(s), check the box that says "I will have more than one employer or payer at the same time" and enter "0" as your total claim. This prevents too little tax from being withheld overall.
Additional Tax to Be Deducted
If you want extra tax deducted from each pay (for example, because you have other income from freelancing or investments), enter the additional amount per pay period in this box. This can help you avoid owing a large amount when you file your T1.
Reduction in Tax Deductions
If you have significant deductions (like RRSP contributions or childcare expenses) that will reduce your tax at filing time, you can request that less tax be taken from your pay. To do this, you need to file Form T1213 with the CRA and receive written approval. Then your employer can reduce the tax taken from each paycheque.
The Provincial/Territorial TD1
In addition to the federal TD1, you must also fill out the provincial or territorial TD1 for the province where you work. For example:
- TD1BC — British Columbia
- TD1ON — Ontario
- TD1AB — Alberta
- TD1QC — Quebec (Note: Quebec has its own form called the TP-1015.3-V, also known as the Source Deductions Return)
The provincial form works similarly to the federal TD1 but with different amounts based on your province's tax credits. You can find all provincial TD1 forms at canada.ca/td1.
Common Mistakes Newcomers Make on the TD1
- Not filling it out at all: If your employer doesn't have a TD1 from you, they'll deduct tax based on only the basic personal amount — you might be missing out on legitimate credits.
- Claiming too many credits: If you overstate your credits and too little tax is withheld, you could owe a large amount at tax time.
- Forgetting the provincial form: You need both forms — federal and provincial.
- Using last year's form: Credit amounts change annually. Always use the current year's TD1.
- Not updating after a life change: Got married? Had a baby? Spouse started working? Fill out a new TD1.
Frequently Asked Questions
What happens if I don't give my employer a TD1?
Your employer will deduct tax based on the basic personal amount only. You won't get the benefit of any additional credits until you file your annual T1 tax return.
Can I fill out the TD1 electronically?
Yes, the CRA provides a fillable PDF version on their website. Some employers also have electronic onboarding systems where you can complete the TD1 digitally.
Do I need to send the TD1 to the CRA?
No. The TD1 stays with your employer. You do not send it to the CRA. Your employer uses it to calculate your tax deductions.
I just arrived in Canada and don't have a SIN yet. Can I still fill out a TD1?
You need a SIN to work in Canada and to complete the TD1. Apply for your SIN at a Service Canada office as soon as possible after arriving. Your employer cannot legally pay you without a SIN on file.
Summary
The TD1 form may seem simple, but filling it out correctly ensures the right amount of tax is deducted from your paycheques throughout the year. As a newcomer, take the time to understand each box, and don't hesitate to ask your employer or a tax professional for help. A properly completed TD1 means fewer surprises at tax time and more money in your pocket when you're entitled to it.
Download This Form
Before you submit anything, download the latest official file here: Download T2202 form (official CRA). Always use the latest version.
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