Tax Credits And Benefits Available To Newcomers In Canada | October 2025

Tax Credits and Benefits Available to Newcomers in Canada | October 2025

As a newcomer to Canada, you have access to various tax benefits available and credits designed to help you settle and thrive in your new home. Understanding these savings programs for newcomers is crucial for managing your finances effectively and maximizing available support. This guide outlines the key benefits available in October 2025 and how to access them.

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Summary Table for Tax Credits and Benefits Available to Newcomers in Canada | October 2025

What Newcomers Need to Know

• You must file a Canadian tax return to be eligible for most benefits
• A Social Insurance Number (SIN) is required for all applications
• Permanent residents and protected persons can apply immediately upon arrival
• Temporary residents may qualify after 18 months of residency
• Benefits are typically reassessed annually based on your tax return
• Most payments are deposited directly to your Canadian bank account

Our Top Recommendations

• Apply for your SIN immediately upon arrival in Canada
• Open a Canadian bank account to receive direct deposits
• File your first tax return even if you had no income in Canada
• Keep all immigration documents and proof of residency
• Sign up for CRA My Account to track your benefits
• Set calendar reminders for payment dates and renewal deadlines

Available Programs and Benefits

1. GST/HST Credit

Category: Government Benefit

The GST/HST credit is a tax-free quarterly payment designed to help individuals and families with low and modest incomes offset their GST/HST expenses. For newcomers to Canada, this program provides essential financial support while establishing themselves in their new country.

What newcomers need to know:

• Must be a Canadian resident for income tax purposes the month before and at the beginning of the payment month
• Must be at least 19 years old during the month before the payment
• Payments are distributed four times a year (January, April, July, and October)
• Cannot be in any tax-exempt categories
• Must file annual income tax returns to receive the credit

Benefits for newcomers:

• Tax-free quarterly payments
• Helps offset GST/HST costs on everyday purchases
• Available to individuals and families with low and modest incomes
• No separate application needed if you file your taxes
• Automatic assessment of eligibility by CRA

How to apply:

• Visit official website to learn more

2. Canada Child Benefit (CCB)

Category: Government Benefit

The Canada Child Benefit (CCB) is a tax-free monthly payment program that helps newcomer families manage the costs of raising children under 18 in Canada. This essential support program provides consistent financial assistance to eligible families, making it easier to establish and maintain a stable home environment after immigrating.

What newcomers need to know:

• Must be a resident of Canada for tax purposes
• Must live with the child who is under 18 years of age
• Must be primarily responsible for the child's care and upbringing
• Required to file annual income tax returns to maintain eligibility
• Benefits are calculated based on family's net income and number of children

Benefits for newcomers:

• Tax-free monthly payments to help with child-raising costs
• Up to $7,997 per year ($666.41 monthly) for children under 6 years
• Up to $6,748 per year ($562.33 monthly) for children aged 6-17
• Payments continue until children turn 18
• Available for families with income under $120,000 annually

How to apply:

• Visit official website to learn more

3. Advanced Canada Workers Benefit (ACWB)

Category: Government Benefit

The Advanced Canada Workers Benefit (ACWB) is a crucial financial support program that provides eligible low-income workers with advance payments of up to 50% of their Canada Workers Benefit. For newcomers to Canada who are beginning their careers or working in entry-level positions, this program offers essential income support through automatic quarterly payments.

What newcomers need to know:

• Must be a resident of Canada throughout the year
• Must be at least 19 years old on December 31, 2024
• Must earn working income over $3,000
• Income must be below $33,015 for individuals without children (varies by province)
• Must file income tax return by November 1 to be considered for eligibility

Benefits for newcomers:

• Automatic payments in three installments (January, July, October)
• No separate application required - determined through tax return
• Up to $1,633 available for single individuals
• Up to $2,813 available for eligible families
• Advance payments of up to 50% of the total Canada Workers Benefit

How to apply:

• Visit official website to learn more

4. Ontario Trillium Benefit (OTB)

Category: Government Benefit

The Ontario Trillium Benefit (OTB) is a tax-free monthly payment that helps low-to-moderate-income Ontario residents manage their living costs. For newcomers to Canada settling in Ontario, this combined benefit is particularly valuable as it provides financial support for essential expenses like energy costs, property tax, and sales tax through a single convenient payment.

What newcomers need to know:

• Must be a resident of Ontario at the beginning of the payment month
• Must have filed their income tax return for the previous year
• Must qualify for at least one of the three combined credits
• Monthly payments are issued on the 10th of each month if benefit amount exceeds $360
• Must meet specific income thresholds for eligibility

Benefits for newcomers:

• Combines three credits into one simplified monthly payment
• Provides support for energy costs through Ontario Energy and Property Tax Credit
• Offers additional assistance through Northern Ontario Energy Credit for eligible residents
• Includes Ontario Sales Tax Credit to offset sales tax costs
• Maximum annual credit of $371 per adult and child in a family (2025)

How to apply:

• Visit official website to learn more

5. Canada Disability Benefit

Category: Government Benefit

The Canada Disability Benefit (CDB) is a federal program providing essential financial support to low-income Canadians with disabilities. For newcomers who have disabilities, this benefit can offer crucial financial assistance to help reduce poverty and provide additional monthly income support while establishing their lives in Canada.

What newcomers need to know:

• Must be between 18 and 64 years of age
• Must be approved for the Disability Tax Credit (DTC)
• Must have filed an income tax return for the previous tax year
• Must meet low-income requirements
• First payments begin in July 2025

Benefits for newcomers:

• Maximum benefit of $2,400 per year
• Monthly payments of up to $200
• Direct financial support to persons with disabilities
• Administered by Service Canada
• Helps reduce poverty for low-income individuals with disabilities

How to apply:

• Visit official website to learn more

6. Canada Pension Plan (CPP) & Old Age Security (OAS)

Category: Government Benefit

The CPP and OAS are two essential federal retirement income programs that provide monthly, taxable benefits for life to eligible residents in Canada. For newcomers, these programs represent important social security benefits that can help ensure financial stability in their senior years, regardless of their work history in Canada.

What newcomers need to know:

• OAS is residence-based and available to seniors aged 65 and older
• CPP requires mandatory contributions from workers and employers
• Quebec residents are covered by the Quebec Pension Plan (QPP) instead of CPP
• Benefits are taxable and provided monthly for life
• Eligibility requirements differ between CPP (work-based) and OAS (residence-based)

Benefits for newcomers:

• OAS provides monthly payments at age 65 regardless of work history
• CPP offers partial replacement of earnings in retirement
• Protection extends to families in cases of disability or death
• Benefits are adjusted for inflation and cost of living
• Additional support through Guaranteed Income Supplement for eligible seniors

How to apply:

• Visit official website to learn more

Final Words

Taking advantage of these tax credits and benefits can significantly impact your financial well-being as you establish yourself in Canada. Start by creating your CRA My Account and submitting your first tax return, which unlocks access to most programs. Remember to explore additional savings programs for newcomers and keep track of payment dates to ensure you don't miss any benefits you're entitled to receive. Stay informed about eligibility requirements and program updates by regularly checking the CRA website or consulting with a settlement agency.