TD1 Form for Newcomers: What to Fill Before You Start a Job
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 that every employee in Canada must complete when they start a new job. It tells your employer how much federal and provincial income tax to deduct from each paycheque. For newcomers to Canada starting their first job, the TD1 can be confusing — but it is straightforward once you understand what each section means.
There are actually two TD1 forms you need to fill out: the federal TD1 and the provincial or territorial TD1 for the province where you work. Your employer should provide both forms on your first day, or you can download them from the CRA website: TD1 forms — CRA.
Why the TD1 Matters
The amount of tax your employer deducts from each paycheque is based on the information you provide on your TD1. If you claim too few credits, too much tax will be deducted (you will get a refund when you file your tax return, but your paycheques will be smaller). If you claim credits you are not entitled to, too little tax will be deducted and you may owe money at tax time.
Getting the TD1 right means your paycheques accurately reflect what you will owe in taxes — no surprises in April.
When Do You Need to Complete a TD1?
You must fill out new TD1 forms when:
- You start a new job
- You want to change the amounts you previously claimed (e.g., you got married, had a baby, or a dependant no longer qualifies)
- You want to increase tax deductions (if you have additional income sources and want to avoid owing at tax time)
The Basic Personal Amount — What Every Newcomer Gets
The most important line on the TD1 is the Basic Personal Amount. This is a tax credit that every Canadian resident is entitled to — it means you do not pay federal income tax on the first portion of your income. For 2025, the federal basic personal amount is approximately $16,129 (this amount is adjusted annually for inflation).
Even if you claim no other credits on the TD1, you should always claim the basic personal amount. It is pre-printed on the form as the default on Line 1.
Section-by-Section Walkthrough: Federal TD1
Line 1: Basic Personal Amount
This is already filled in with the annual basic personal amount. Unless you earn more than approximately $173,000 (at which point the basic personal amount is slightly reduced), simply confirm the pre-printed amount.
Line 2: Age Amount
If you are 65 or older on December 31 of the current year, you can claim the age amount. Most newcomers of working age will leave this blank.
Line 3: Pension Income Amount
Claim this if you receive eligible pension income (such as from a registered pension plan or annuity). Most newcomers starting their first Canadian job will leave this blank.
Line 4: Tuition (Full-Time and Part-Time)
If you are a student attending a qualifying educational institution in Canada and paying tuition, enter the estimated tuition fees you will pay in the current year. This reduces the tax deducted from your paycheques. See our T2202 guide for more on tuition credits.
Line 5: Disability Amount
Claim this if you have an approved Disability Tax Credit (DTC) from the CRA. You must have Form T2201 approved first. See our DTC guide.
Line 6: Spouse or Common-Law Partner Amount
If your spouse or common-law partner's net income for the year will be less than the basic personal amount, you can claim the difference. For example, if your spouse earns $5,000 and the basic personal amount is $16,129, you can claim $16,129 - $5,000 = $11,129.
This is very relevant for newcomer families where one spouse works and the other is job-searching or staying home with children.
Line 7: Amount for an Eligible Dependant
If you are single (or separated) and support a child under 18, a parent, or a relative who depends on you financially, you may be able to claim this amount. You cannot claim this if you are claiming the spouse amount on Line 6.
Line 8: Canada Caregiver Amount for Dependants
If you support a dependant (spouse, child, parent, etc.) who has a physical or mental impairment, you may claim an additional amount here.
Line 9: Amounts Transferred from Dependant
If your dependant does not use their full disability amount or tuition credit, the unused portion can be transferred to you.
Line 10: Total Claim Amount
Add up all the amounts from Lines 1 through 9. This is your total claim amount. Write this number on the line indicated.
Additional Tax to Be Deducted (Back Page)
If you have additional income that is not subject to tax deductions at source — such as freelance income, rental income, investment income, or income from a second job — you can request that your employer deduct additional tax from each paycheque. Enter the extra amount per pay period on this line.
This is a smart strategy if you know you will owe taxes for other income. It prevents a large tax bill in April.
Provincial TD1 Form
In addition to the federal TD1, you must complete the provincial TD1 for the province where you are employed. The provincial form is structured similarly but uses provincial credit amounts, which differ from the federal amounts.
Common provincial forms:
- TD1ON — Ontario
- TD1BC — British Columbia
- TD1AB — Alberta
- TD1SK — Saskatchewan
- TD1MB — Manitoba
If you work in Quebec, you do not complete a provincial TD1. Instead, you complete Revenu Québec's Form TP-1015.3-V (Source Deductions Return).
Special Considerations for Newcomers
Arriving Mid-Year
If you arrived in Canada partway through the year, your annual income will be lower than a full year of work. The TD1 is based on annual amounts, so the deductions will be roughly proportional. You may end up having slightly more tax deducted than necessary, resulting in a refund when you file your tax return.
Multiple Jobs
If you work more than one job simultaneously (common for newcomers), you should only claim the basic personal amount on the TD1 for one employer — typically the one that pays you the most. For your second (and any additional) job, check the box on the back of the TD1 that says "More than one employer at the same time" and claim zero credits. This prevents under-deduction of taxes.
Non-Resident Status
If you are a non-resident of Canada for tax purposes (e.g., you work in Canada temporarily but your primary home is elsewhere), check the "non-resident" box on the back of the TD1. Non-residents are not entitled to the basic personal amount and will have tax deducted at a flat rate.
Common Mistakes
- Not filling out the TD1 at all: If you do not submit a TD1, your employer will deduct tax as if you claimed only the basic personal amount — which may or may not be accurate.
- Claiming the spouse amount when both spouses work: If your spouse earns more than the basic personal amount, you cannot claim Line 6.
- Claiming credits on multiple employers' TD1s: Only claim the full personal credits on one employer's form.
- Forgetting the provincial form: You need BOTH the federal and provincial TD1.
What Happens After You Submit the TD1?
Your employer uses the information to calculate how much tax to deduct from each paycheque using the CRA's payroll deduction tables. You do not send the TD1 to the CRA — your employer keeps it on file. At year-end, when you file your actual tax return, the CRA calculates your true tax liability and you either receive a refund (if too much was deducted) or owe a balance (if too little was deducted).
Key Takeaways
- Complete both the federal TD1 and provincial TD1 when starting a new job
- Always claim the basic personal amount (Line 1) — every Canadian resident gets this
- Claim the spouse amount if your spouse earns less than the basic personal amount
- If you have two jobs, claim full credits on only one employer's TD1
- Request additional deductions if you have other income sources
- You do not send the TD1 to the CRA — give it to your employer
- Review and update your TD1 whenever your situation changes (marriage, new dependant, etc.)
Download This Form
Before you submit anything, download the latest official file here: Download T2202 form (official CRA). Always use the latest version.
Related internal guides
Official external resources
- Download T2202 form (official CRA)
- IRCC forms and guides library
- IRCC document checklists
- CRA forms and publications
- IRCC processing times
- WelcomeAide Blog — browse all newcomer guides and updates
- Tax Guide — understand taxes, filing deadlines, and common credits
- Banking Guide — compare newcomer banking options and account types
- Cost Calculator — estimate monthly living costs in Canada
- Benefits Guide — find federal and provincial financial supports
- RC66 Walkthrough: Canada Child Benefit Form for Newcomer
- IMM 1294 Study Permit Form Guide: Common Fixes Before
- IMM 1295 Work Permit Form Guide for Newcomers (2026)
Related Resources
WelcomeAide Tools
Related Guides
Official Government Sources
Keep WelcomeAide Free
This guide is free — and always will be.
WelcomeAide is a nonprofit. If this helped you, a small donation keeps us running for the next newcomer.
Support WelcomeAide →