T1 – Personal income tax return
The T1 personal tax return is the return all taxpayers in Canada are required to file.
Most T1 returns are filed electronically, either by tax professionals using the EFILE service or by individuals using the NETFILE service.
The T1 General lists all sources of your income and your refundable and non-refundable tax credits, and calculates the tax payable or refund for an individual.
T1 income tax package on canada.ca (opens in a new tab)
T2 – Corporate tax return
The T2 corporate tax return must be filed by all corporations resident in Canada.
A corporation is a separate legal entity, so it needs to file its own return.
Corporate tax rates and tax rules are different from the rates and rules for individuals.
T2 corporation income tax return on canada.ca (opens in a new tab)
T3 – Trust tax return
When an individual dies, all their assets are deemed to be disposed of and become part of their estate.
An estate is considered a graduated rate estate for 36 months after the date of death.
For tax purposes, a T3 trust return needs to be filed for all estates and trusts resident in Canada.
A trust is not a separate legal entity, but it is treated as a separate entity for tax purposes in Canada.
T3 trust income tax and information return on canada.ca (opens in a new tab)
Principal residence exemption (T2091)
You must report the sale of your home, even if it was your principal residence.
To avoid capital gains tax, claim the principal residence exemption by filing form T2091.
The claim becomes complicated if the home was not your principal residence for every year you owned it. A tax professional can help with these claims.
Form T2091(IND) on canada.ca (opens in a new tab)
Foreign property reporting (T1135)
Every Canadian taxpayer must report foreign property they owned during the year if its total cost was more than $100,000.
Foreign property is reported on form T1135, Foreign Income Verification Statement. It must be filed every year you own the foreign property.
Foreign property may include:
- Real property
- Ownership of a foreign private corporation
- Foreign stocks
- Mutual funds
- Cash and cash equivalents in foreign banks
Form T1135 on canada.ca (opens in a new tab)
Business income (T2125)
If you are self-employed or run a small business that is not incorporated, file form T2125, Statement of Business or Professional Activities, with your T1 return to report your business income.
You can claim expenses against your gross business income, so you pay tax only on your net income.
Small businesses and self-employed people may need to collect GST/HST and file a separate GST/HST return.
You can claim all expenses relevant to your business. Talk to an accountant to make sure your expenses are claimed correctly.
Form T2125 on canada.ca (opens in a new tab)
Capital gains (Schedule 3)
Schedule 3 is used to report capital gains or losses on your capital property.
Capital property might include:
- Real property
- Stocks
- Mutual funds
- Small business corporation shares
- Farm or fishing property
- Bonds, debentures and other debt instruments
- Personal-use property
- Listed personal property
Your financial institution may issue T3, T5, T4PS, T5013 or T5008 slips that show your gains or losses.
The CRA keeps a record of your net capital losses, and they are shown on your notice of assessment.
Completing Schedule 3 on canada.ca (opens in a new tab)
Marital status change (RC65)
Tell the Canada Revenue Agency when your marital status changes.
Benefits such as the Canada child benefit and the GST/HST credit are based on your family's net income. A change in marital status changes your family net income, and so the benefits you can get.
Update your marital status even if your spouse is a non-resident who does not live in Canada.
Form RC65 on canada.ca (opens in a new tab)
Canada child benefit application
If you have recently immigrated to Canada and have children, you may be eligible for the Canada child benefit.
The Canada child benefit is a tax-free payment to families to help with the cost of raising children.
The benefit goes down as family income goes up, to better target lower- and middle-income families.
Canada child benefit: before you apply, on canada.ca (opens in a new tab)
GST/HST credit for new residents (RC151)
The GST/HST credit gives back part of the GST/HST paid by individuals and families with low incomes.
New residents of Canada, including temporary workers and international students, may be eligible from the date they arrive in Canada.
In Ontario, applying for the GST/HST credit also lets you be considered for the Ontario Trillium Benefit, so you don't need a separate application for it.
Form RC151 on canada.ca (opens in a new tab)
Disability tax credit certificate (T2201)
The disability tax credit helps people with disabilities cover the extra costs they have because of their condition.
- It is an additional tax credit for people with disabilities.
- The disability must be approved by the CRA.
- The credit can be transferred to a spouse or another family member if the person with the disability depends on them and doesn't have taxable income.
To apply, complete form T2201, Disability Tax Credit Certificate.
Form T2201 on canada.ca (opens in a new tab)
Notice of assessment
A notice of assessment is the notice the Canada Revenue Agency sends after it processes your return.
It shows the details of your income and your final tax.
If you have a refund, your notice of assessment will say whether it is being sent by cheque or deposited directly into your account.
If you owe tax, the notice of assessment will show the amount. Amounts owing for individuals are generally due April 30.
Authorized representatives can get your notice of assessment through the CRA's Represent a Client service. You can also register for CRA My Account to see your notices of assessment.
Understanding your notice of assessment on canada.ca (opens in a new tab)