Residency and your first return
Tax residency is determined by your ties to Canada, not only by immigration status. It affects what income you must report. The CRA's newcomers guidance is the authoritative starting point.
Life in BC
Taxes in British Columbia
An orientation to the Canadian and BC tax system for people filing here for the first time.
Start here
What this means in BC
Canadian residents generally file an annual income tax return with the Canada Revenue Agency, which administers both federal and BC provincial income tax. Your first year is usually the most confusing, because residency status, arrival date and foreign income all affect how you file. The CRA publishes guidance specifically for newcomers.
The overview
How it generally works
Filing an annual return
Employers issue slips summarizing your income and deductions, and you file a return each year. Filing is also how you become eligible for many benefits and credits, so people with little or no income often still file.
Other taxes you will meet
Sales tax is added at checkout rather than shown in the shelf price. Homeowners pay annual property tax to their municipality. Purchasing property generally triggers property transfer tax, and some municipalities and the Province operate additional housing-related taxes and declarations.
Getting help
Accountants and tax preparers can handle a complex first year, particularly if you have foreign income, property abroad or a business.
Vocabulary
Important terms
- CRA
- Canada Revenue Agency, which administers federal and BC income tax.
- SIN
- Social Insurance Number, needed to work and to file.
- T4
- The slip an employer issues summarizing employment income.
- Tax credit
- An amount that reduces the tax you owe.
- Property transfer tax
- A provincial tax generally applied when property changes hands.
Sequence
Typical steps
A general order most people follow. Your situation may differ.
- 1Apply for a Social Insurance Number after arrival.
- 2Keep records of arrival date, income earned abroad and moving expenses.
- 3Register for a CRA online account.
- 4Collect your slips each spring.
- 5File by the annual deadline, even with little income.
- 6Get professional help for your first return if your situation is complex.
Budgeting
Common costs or considerations
- Income tax withheld from pay or paid at filing.
- Sales tax added at purchase.
- Annual municipal property tax for owners.
- Property transfer tax on most purchases.
- Fees for an accountant or tax preparer.
We do not publish specific prices, rates or fees. Amounts depend on your situation and should be quoted by the provider or confirmed with the official source.
Learn from others
Common newcomer mistakes
- Not filing because income was low, and losing access to benefits.
- Forgetting to report foreign income or foreign property where required.
- Missing declarations tied to property ownership.
- Assuming shelf prices include sales tax when budgeting.
Be prepared
Questions to ask a professional
Bring these to any meeting. Good professionals welcome them.
“Am I a tax resident from my arrival date, and what does that mean for my first return?”
“What do I need to report about income or assets outside Canada?”
“Which credits or benefits should I be applying for?”
“What records should I keep, and for how long?”
Where this comes from
Sources and accuracy
Last updated: August 2026
Please confirm before relying on it
- — All tax rates, brackets, credit amounts and filing deadlines — confirm with the CRA and the Province. We do not publish rates.
- — Which housing-related taxes or declarations apply to a specific property and municipality.
Rules, programs, amounts and costs change over time. Always confirm current details with the official source before making a decision.
This page is general education, not legal, tax, financial, mortgage or real-estate advice.
Keep going
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Plan around your real costs
Tax is one line in a household budget. Seeing the whole picture by city makes planning easier.