Income tax in Canada for newly arrived Brazilians: a basic guide | ImmigraCan

The Canadian tax system differs from Brazil's in several important ways. For newly arrived Brazilians, understanding this can mean thousands of dollars in benefits recovered — or lost.

The basics: who pays tax in Canada

You pay tax in Canada if:

• You're a resident for tax purposes (you live in the country or have significant ties to it)
• You have income sourced from Canada (even if you're a non-resident)

Tax residency and immigration status are different things. You can be a PR and not be a tax resident (e.g., you live abroad), or be a tax resident without being a PR (e.g., you work on a work permit).

Two layers: federal and provincial

You pay tax to:

1. Federal (CRA — Canada Revenue Agency): a national rate
2. Provincial: each province has its own additional rate

2026 rates (federal):

• Up to CAD 55,867: 15%
• CAD 55,867 – 111,733: 20.5%
• CAD 111,733 – 173,205: 26%
• CAD 173,205 – 246,752: 29%
• Above CAD 246,752: 33%

Provincial (Ontario example):

• Up to CAD 51,446: 5.05%
• CAD 51,446 – 102,894: 9.15%
• And so on

Combined effective rate for income of CAD 70,000 in Ontario: ~24%.

How to calculate your net salary

Use our net salary calculator, which already accounts for:

• Federal + provincial tax
• CPP (Canada Pension Plan) — 5.95% up to a cap
• EI (Employment Insurance) — 1.66% up to a cap

Rule of thumb: expect to take home ~75% of your gross salary.

Essential forms

T4 (Statement of Remuneration Paid) — what your employer gives you in February/March, showing your gross salary and taxes withheld for the previous year.

T4A — for scholarship, retirement, pension payments, etc.

T5 (Statement of Investment Income) — interest earned on a bank account, dividends.

T3 — trusts (investment funds).

RC66 (Canada Child Benefit) — to apply for the CCB (if you have children).

T1 (Income Tax Return) — the annual form you file by April 30.

Important deadlines

• April 30: deadline to file the previous year's T1. If you owe tax, you need to pay by this date
• June 15: deadline for self-employed individuals (but if you owe tax, you still must pay by April 30)
• February/March: employers issue T4s

What to report

You report your worldwide income if you're a Canadian tax resident — this includes:

• Canadian salary (T4)
• Salary from outside Canada
• Rental income from property in Brazil
• Foreign investments (mandatory if you hold >CAD 100,000 in foreign assets — Foreign Income Verification, form T1135)
• Brazilian retirement income
• Capital gains from asset sales

Note — double taxation: Canada has a tax treaty with Brazil to avoid double taxation. You pay tax in the country where the income was generated and get a credit in the other. Don't skip reporting out of fear — the CRA cross-references data with FinCEN and other agencies.

Main deductions

RRSP (Registered Retirement Savings Plan) — deducted from taxable income. Annual limit: 18% of earned income, up to CAD 32,490 (2026).

TFSA — not a deduction, but gains are tax-free. Annual limit: CAD 7,000 (2026).

Home office expenses — if you work from home (a portion of office-related costs), you can deduct a percentage of your utility bill, internet, and rent.

Childcare expenses — payments for daycare, after-school care.

Moving expenses — if you moved for work or study (more than 40km away).

Charitable donations — donations to a registered charity.

Medical expenses — those exceeding 3% of net income.

Union/Professional dues — union or professional association fees.

Benefits you RECEIVE (not deductions)

Canada Child Benefit (CCB): up to CAD 7,437/year per child under 6, CAD 6,275/year per child 6–17. Income-tested.

GST/HST Credit: quarterly refund, up to CAD 500/year for a couple + CAD 175/child.

Canada Workers Benefit: for low-income workers.

Canada Carbon Rebate: quarterly refund of the carbon tax — paid automatically if you file taxes.

IMPORTANT: you only receive these benefits if you file taxes every year, even if your income was zero. Many Brazilians lose CAD 3,000+/year by not filing in their first year.

How to file (step by step)

Option 1 — Free software:

• Wealthsimple Tax — 100% free
• TurboTax Free — free for simple cases
• UFile Free — free for newcomers

Option 2 — Accountant:
- Needed if: you have foreign investments, rental income from property in Brazil, or you're self-employed
- Cost: CAD 100–500

Option 3 — CVITP (Community Volunteer Income Tax Program):
- Free for low income (<CAD 42,000 single, <CAD 60,000 couple)
- CRA-certified volunteers prepare your return
- Find one near you: canada.ca/taxes-help

Common mistakes Brazilians make

1. Not filing in the first year — losing out on CCB, GST credit, and other benefits
2. Forgetting to report Brazilian income (rent, retirement) — the CRA can fine you up to 50% of the tax owed
3. Not keeping receipts — deductions without receipts get rejected in an audit
4. Not using a TFSA/RRSP — leaving money in savings without a tax strategy
5. Paying tax in Brazil on Canadian income — generally not owed; check the Brazil-Canada tax treaty
6. Not claiming credit for tax paid in Brazil — if you pay income tax in Brazil, you're entitled to a credit in Canada

Useful tools

• CRA My Account — the official portal. Activate by mail (the code arrives in 2 weeks)
• My CRA Mobile App — an app to check taxes paid, refunds, and benefits
• Notice of Assessment (NOA) — the official document you get after filing. Keep it for renewing a work permit or buying a house

Next steps

• Calculate your net salary to understand how much is left over
• If you're still deciding on a province, tax rates vary quite a bit (Alberta has one of the lowest; Quebec one of the highest). Compare cities

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*This content is informational and does not constitute legal or immigration advice. ImmigraCan is not affiliated with the Government of Canada or IRCC. Always confirm official information at canada.ca, and for your specific case, consult a Regulated Canadian Immigration Consultant (RCIC) or a specialized lawyer.*