CRA Benefits and Support for Newcomers to Canada
Canada offers a range of benefits and tax exemptions for newcomers, including permanent residence (including those with “approval” from IRCC to stay in Canada) and temporary residents (likes an international student, foreign workers). According to the Canada Revenue Agency (CRA), the newcomer status applies in the first year of residency in Canada. These benefits and tax exemptions are provided to offer financial support. To qualify for these benefits, the newcomer or their spouse or common-law partner must be considered a resident of Canada for tax purposes (living over 183 days in Canada qualifies). To receive the benefits and exemptions, they must:
1. Obtain a Social Insurance Number (SIN) at Service Canada
The Social Insurance Number (SIN) is a unique 9-digit personal identification number required for various purposes in Canada. It is essential for accessing government services, employment, and benefits.
- To receive benefits and tax exemptions
- To work legally in Canada
- To open various types of bank accounts
You can apply for a SIN online, in person at a Service Canada Centre, or by mail. You must apply for a SIN if you:
- First-time applying for a SIN
- Need to confirm a SIN
- Need to modify information in SIN records
- Have legally changed your name
- Need to update citizenship status in SIN records
- Need to update residency expiration date in SIN records
- Want to remove document identification number from SIN records
If Service Canada cannot issue a permanent or temporary SIN, the Canada Revenue Agency (CRA) can provide a Temporary Tax Number (TTN). The TTN allows individuals to access benefits and tax exemptions, file taxes, and use CRA's online services.
2. Apply for the appropriate benefits and tax exemptions
Newcomers to Canada can qualify for benefits and tax exemptions during their first year without needing to file their initial tax return. This allows them to access financial support while settling in.
GST/HST credit and the Canada Carbon Tax rebate
These benefits include the GST/HST credit and the Canada Carbon Tax rebate, designed to reduce taxes on shopping activities. Eligible individuals aged 19 and older with low or moderate income can apply for a tax-free quarterly benefit.
Canada Child Care Benefit
Additionally, the Child Care Benefit (CCB) is available for those with children under 18. Eligible individuals can apply for a tax-free monthly benefit to help with family expenses. Temporary residents must have continuously lived in Canada for at least 18 months and hold a valid permit until the 19th month before they can apply for the CCB and related provincial programs.
To apply for the GST/HST or CCB, individuals need to fill out the appropriate forms.
- For individuals without children: Form RC151 is the application for the GST/HST Credit for individuals who have become residents of Canada.
- For individuals with children Form RC66, Application for the Canada Child Benefit, along with Form RC66SCH, Status in Canada and Income Information.
Applicants seeking both the GST/HST credit and the CCB can use Form RC66/RC66SCH to apply for both benefits simultaneously.
Provincial benefits and tax credits
1. Alberta
Alberta Child and Family Benefit (ACFB) is a tax-free amount granted to families with children under 18 years old.
Government source: Alberta Child and Family Benefit (ACFB)
2. British Columbia
BC Family Benefit (BCFB), previously known as the BC Child Benefit, is a monthly tax-free grant for families with children under 18 years old. This amount is combined with the Child Care Benefit (CCB) into a single monthly benefit.
The BC Climate Action Tax Credit (BCCATC) is a tax-free grant provided to individuals and families with low income to help alleviate the carbon taxes they have to pay.
Government source:
3. Manitoba
The CRA does not administer any benefit programs on behalf of Manitoba.
4. New Brunswick
New Brunswick Child Tax Benefit (NBCTB) is a monthly, non-taxable benefit for eligible families with children under 18.
New Brunswick Working Income Supplement (NBWIS) is an additional benefit provided to eligible families with income and children under 18 years old. These benefits are combined with the Canada Child Benefit (CCB) into a single monthly payment.
New Brunswick Harmonized Sales Tax Credit (NBHSTC) It is a tax-free credit designed to offset the increase in sales tax for low to moderate-income households.
Government source:
- New Brunswick Child Tax Benefit (NBCTB)
- New Brunswick Working Income Supplement (NBWIS)
- New Brunswick Harmonized Sales Tax Credit (NBHSTC)
5. Newfoundland and Labrador
The Newfoundland and Labrador Child Benefit (NLCB)(including the Prenatal-Early Childhood Nutrition Supplement) is a monthly tax-free benefit designed to support low-income families with children under 18. The Prenatal-Early Childhood Nutrition Supplement (PECNS), previously known as the Prenatal Infant Nutrition Supplement (PINS), is an additional benefit for eligible families. These benefits are combined with the Canada Child Benefit (CCB) into a single monthly payment.
Newfoundland and Labrador Income Supplement (NLIS) is a tax-free benefit provided to low-income individuals, families, and persons with disabilities who may be affected by the province's additional tax measures. The amount is determined based on your family situation and after-tax family income.
Newfoundland and Labrador Disability Amount (NLDA) is a supplemental benefit added to NLIS to support low- and middle-income individuals with disabilities.
Newfoundland and Labrador Disability Benefit (NLDB) is a new financial assistance program launching in July 2025. It will provide up to $400 per month to eligible individuals aged 18-64 to offer basic income support. Additionally, starting January 2025, eligible individuals will receive $1,200 through the Registered Disability Savings Program (RDSP) to help ensure long-term financial stability.
Newfoundland and Labrador Seniors’ Benefit (NLSB) provides an annual tax-free benefit of $1,516 to the following individuals:
- Single seniors aged 65 or older, at any time in 2023
- Couples or common-law partners with at least one senior, are eligible for an annual tax-free benefit of $1,516 if their family’s after-tax income does not exceed $29,402
Government source:
- Newfoundland and Labrador Child Benefit (NLCB)
- Prenatal-Early Childhood Nutrition Supplement (PECNS)
- Newfoundland and Labrador Income Supplement (NLIS)
- Newfoundland and Labrador Disability Amount (NLDA)
- Newfoundland and Labrador Disability Benefit
- Newfoundland and Labrador Seniors’ Benefit (NLSB)
6. Northwest Territories
Northwest Territories Child Benefit (NWTCB) is a monthly, tax-free benefit provided to eligible low- and middle-income families with children under 18.
Northwest Territories Cost of Living Offset (NTCOLO) is a tax-free benefit aimed at helping individuals and families mitigate the impact of carbon tax in the Northwest Territories. It is combined with the federal GST/HST credit in quarterly payments.
Government source:
7. Nova Scotia
Nova Scotia Child Benefit (NSCB) is a monthly, tax-free benefit designed to assist low- and modest-income families with the costs of raising children. These benefits are combined with the Canada Child Benefit (CCB) into a single monthly benefit.
Nova Scotia Affordable Living Tax Credit (NSALTC) is a tax-free payment aimed at improving affordability for low- and modest-income individuals and families. It helps offset the increase in the Harmonized Sales Tax (HST) and provides additional income to these households.
Government source:
8. Nunavut
Nunavut Child Benefit (NUCB) is a monthly, tax-free benefit provided to eligible families with children under 18 years old.
Nunavut Carbon Credit (NCC) is a tax-free benefit awarded to individuals and families to mitigate the impact of carbon tax. This payment is combined with the federal quarterly GST/HST credit. However, the first NCC benefit became effective on July 1, 2023, and was issued on September 5, 2023.
Government source:
9. Ontario
Ontario Trillium Benefit (OTB) combines the Ontario Energy and Property Tax Credit, the Northern Ontario Energy Credit and the Ontario Sales Tax Credit into a single monthly payment. The annual benefits of OTB are typically divided into 12 monthly payments.
- Ontario Energy and Property Tax Credit (OEPTC) assists low- to moderate-income residents in paying energy sales tax and property tax.
- Northern Ontario Energy Credit (NOEC) helps low- to moderate-income residents in Northern Ontario manage their higher energy costs.
- Ontario Sales Tax Credit (OSTC) provides tax relief to low- to moderate-income residents of Ontario.
Ontario Child Benefit (OCB) là khoản trợ cấp không chịu thuế được cung cấp để hỗ trợ các gia đình có thu nhập thấp đến trung bình trong việc chăm sóc trẻ em của họ.
Ontario Senior Homeowners’ Property Tax Grant (OSHPTG) provides property tax relief for senior homeowners with low to moderate income. This program is fully funded by the Province of Ontario and is administered by the CRA.
Ontario Disability Support Program (ODSP) provides financial support for basic needs such as food and housing, as well as employment assistance for individuals with disabilities to find and maintain work. The program includes training and workplace support. Eligibility is based on disability status and financial need.
Government source:
- Ontario Trillium Benefit (OTB)
- Ontario Child Benefit (OCB)
- Ontario Senior Homeowners’ Property Tax Grant (OSHPTG)
- Ontario Disability Support Program (ODSP)
10. Prince Edward Island
Prince Edward Island Sales Tax Credit is a tax-free benefit designed to help low- to moderate-income households cope with the increase in sales tax.
Government source: Prince Edward Island Sales Tax Credit
11. Quebec
Family Allowance provides financial support for eligible families with children under 18 years old.
Government source: Family Allowance
12. Saskatchewan
Saskatchewan Low-Income Tax Credit (SLITC) is a tax-exempt benefit designed to assist low- to moderate-income residents of Saskatchewan. The benefit provides $380 per person, $380 for a spouse or common-law partner (or eligible dependent), and $150 for each child (up to a maximum of 2 children), with an annual credit of up to $1,060 per family from July to June.
Government source: Saskatchewan Low-Income Tax Credit (SLITC)
13. Yukon
Youth Care Benefit (YCB) is a monthly tax-exempt benefit aimed at assisting low- to moderate-income families in covering the costs of raising children under 18. These payments are combined with the Child Care Benefit (CCB) into a single monthly benefit.
Yukon Government Carbon Price Rebate – Individuals (YGCPRI) is a tax-exempt rebate provided to individuals and families to help offset the federal carbon emissions tax costs. It is combined with the federal quarterly GST/HST payments. Applicants will automatically be considered for related programs managed by the CRA on behalf of the provinces when they apply for the CCB or file their tax returns.
Government source:
3. Các phúc lợi và trợ cấp khác
Sau khi nộp tờ khai thuế lần đầu, cá nhân có thể đủ điều kiện để nhận thêm các khoản hoàn thuế và lợi ích khác:
- Canada Dental Benefit
- One-time top-up to the Canada Housing Benefit (ineffective since April 12, 2024)
- Disability Tax Credit
- Canada Carbon Rebate (formerly known as Climate Action Incentive Payment)
- Trợ cấp người lao động Canada (Canada Workers Benefit)
- Child Disability Benefit
- Canada Caregiver Credit
- Canada Training Credit
- Home Accessibility Tax Credit
- Children’s Special Allowances
- COVID-19 benefits from the CRA
4. To receive benefits
To access benefits and allowances, individuals can opt for direct deposit into their Canadian bank account. To continue receiving these benefits annually, you need to:
- File your tax return and benefits on time, even if you have no income.
- Ensure that your spouse or common-law partner also files a tax return, even if they have no income.
- Update your personal information with the CRA.
- Keep documentation to support your circumstances for CRA dealings.
