CRA and Taxes in Canada – TFSA, RRSP, Filing, Deadlines (2026)

CRA – overview

CRA (Canada Revenue Agency) is the federal tax agency of Canada. It manages:

• Federal income tax
• GST/HST
• EI, CPP contributions
• Child Benefits, GST/HST credit
• Provincial taxes (collection for most provinces)

Tax year in Canada: January 1 – December 31 (calendar year).

Deadlines

Deadline	What
February 28	Employers send T4 (annual income slip)
March 1	RRSP contribution deadline for the previous year
April 30	FILING deadline for general taxpayers + PAYMENT deadline for ALL
June 15	FILING deadline for self-employed (payment still April 30)

Late filing penalty

• 5% balance owing first day late
• +1% each month late (max 12 months)
• Plus interest (compound daily) ~6-9%

Tax rates 2024

Federal

Bracket	Rate
$0-$15,705 (Basic Personal Amount)	0%
$15,705-$55,867	15%
$55,867-$111,733	20.5%
$111,733-$173,205	26%
$173,205-$246,752	29%
Above $246,752	33%

Provincial (Ontario 2024)

Bracket	Rate
$0-$51,446	5.05%
$51,446-$102,894	9.15%
$102,894-$150,000	11.16%
$150,000-$220,000	12.16%
Above $220,000	13.16%

Combined marginal rates (Ontario top)

• $55k: ~24% combined
• $100k: ~38%
• $150k: ~46%
• $250k+: ~53.5%

CPP + EI

CPP (Canada Pension Plan)

• Rate 2024: 5.95% employee + 5.95% employer
• Limit: $68,500 (Year's Maximum Pensionable Earnings)
• Max contribution: $3,867.50/year
• Enhanced CPP since 2019 – higher future benefits
• Funds state pension

EI (Employment Insurance)

• Rate 2024: 1.66% employee + 2.32% employer
• Limit: $63,200
• Max: $1,049/year
• Funds unemployment, maternity, sickness benefits

Tax-advantaged accounts

TFSA (Tax-Free Savings Account)

Investment account with tax-free growth + withdrawals.

Limits (cumulative since 2009)

• 2009-12: $5,000/year
• 2013-14: $5,500/year
• 2015: $10,000
• 2016-18: $5,500/year
• 2019-22: $6,000/year
• 2023: $6,500
• 2024: $7,000
• 2025: $7,000
• 2026 (estimated): $7,000-7,500

Total lifetime contribution room for someone 18+ in 2009: ~$95-100k by 2024-25.

Features

• Contributions NOT deductible
• Growth NOT taxed
• Withdrawals NOT taxed
• Room from withdrawal returns next calendar year
• Can hold in savings, GICs, stocks, ETFs, mutual funds

Eligibility

• Canadian resident for tax purposes
• 18+ years
• Valid SIN

Polish citizens: can contribute from the moment of obtaining residency status. Full lifetime room available from the year of residency, NOT from 2009.

RRSP (Registered Retirement Savings Plan)

Tax-deferred retirement account.

Limits

• 18% earned income from the previous year
• Max 2024: $31,560
• Lifetime carry-forward (unused)
• Pension Adjustment for DBP workers (less room)

Features

• Contributions deductible (lowers tax in the year)
• Growth tax-deferred
• Withdrawals taxed as income (when retired)
• Converted to RRIF at 71
• HBP (Home Buyer's Plan) – withdraw $35k tax-free for first home
• LLP (Lifelong Learning Plan) – $20k tax-free for education

TFSA vs RRSP

	TFSA	RRSP
Contribution deductible	NO	YES
Growth taxed	NO	NO (deferred)
Withdrawals taxed	NO	YES
Limit (2024)	$7k	18% income / $31.5k
Best for	Lower income	Higher income

Generally:

• RRSP better for higher income earners (deduction valuable when tax bracket high)
• TFSA better for lower income (no benefit from deduction)
• Optimal: both (max out)

Major credits and deductions

Common credits

• Basic Personal Amount: $15,705 federal + provincial
• Spousal Amount: $15,705 (if partner low income)
• Canada Child Benefit (CCB): up to $7,437/child under 6
• GST/HST Credit: for low income
• Climate Action Incentive: for provincial
• Disability Tax Credit
• Tuition tax credit: 15% of tuition
• Medical expenses > 3% net income or $2,759
• Charitable donations: 15% first $200, 29% above

Common deductions

• RRSP contributions
• Child care expenses
• Moving expenses (40+ km for work)
• Union dues, professional dues
• Employment expenses (limited cases)
• Carrying charges (interest on investment loans)

Filing taxes

Methods

Online (NETFILE)

Federal government online filing through certified software:

• Wealthsimple Tax – free, popular
• TurboTax Free / Premium – Free with basic, paid versions for complex
• StudioTax – desktop free
• GenuTax – free with basic
• UFile – paid
• H&R Block – paid

Paper

Mail forms to CRA. Slower (4-12 weeks processing).

Tax preparer

• Accountant: $100-500
• H&R Block office: $100-300
• Polish-speaking accountants in Toronto, GTA

Volunteer programs

• CVITP (Community Volunteer Income Tax Program) – free for low income

Documents needed

Income slips

• T4 – employment income
• T4A – pension, scholarship, other income
• T4E – EI benefits
• T5 – investment income (interest, dividends)
• T3 – trust income
• T5008 – securities transactions

Deduction documents

• RRSP contribution receipt
• Child care receipts
• Medical expense receipts
• Tuition (T2202A)
• Charitable donation receipts
• Union dues

CRA "My Account"

Online portal for taxpayers:

• View tax returns for the past 11 years
• Notice of Assessment (NOA)
• Refund status
• Direct deposit setup
• Auto-fill My Return (next year)
• Update personal info
• Submit documents
• RRSP contribution room
• TFSA contribution room

Setup at canada.ca/cra-my-account – requires identity verification.

Polish-specific tax issues

Polish income

Canadian tax residents (usually PR or longer-term residents) report GLOBAL income:

• Polish pension (ZUS) – report on T1 line 11500
• Polish rental income – Schedule T776
• Polish business income
• Polish investments

Foreign tax credit

Polish taxes paid → Canadian foreign tax credit. Avoids double taxation.

Tax treaty Poland-Canada

Bilateral treaty (1987) – prevents double taxation, allocates taxation rights.

FBAR equivalent – T1135

Foreign Income Verification Statement – required if foreign property > $100k CAD aggregate:

• Foreign bank accounts
• Foreign investments
• Foreign real estate (used for income)
• Foreign trust interests

Does NOT require foreign real estate used personally (vacation home).

Polish citizens non-residents Canada

Working briefly in Canada without establishing residency:

• Tax only on Canadian-source income
• Determined by residential ties test
• Treaty tie-breaker rules

Notice of Assessment (NOA)

CRA's response to your return:

• Confirms received
• Shows refund or balance owing
• Updates RRSP / TFSA room
• Sent after 2-4 weeks (e-file) or 6-12 (paper)

Audit

~3-5% of returns audited each year. Triggered by:

• Unusual deductions
• Mismatches with third-party reports
• Random selection
• Specific industries flagged

Audit can be:

• Pre-assessment review (before NOA)
• Post-assessment review
• Field audit (visit your home/business)

Practical tips

• SIN is key for everything
• Filing April 30 deadline (June 15 for SE)
• CRA My Account setup
• Wealthsimple Tax free for most
• T4 from each employer – keep
• TFSA contribute consistently – building tax-free wealth
• RRSP for high income earners – large deduction
• Polish income requires reporting
• T1135 for > $100k foreign property
• Polish-Canada tax treaty protects against double tax
• Foreign tax credit for Polish taxes
• Polish-speaking accountant for complex situations
• Auto-fill My Return next year
• Direct deposit refund faster