Top 10 Tax Credits & Deductions Newcomers Should Know When Filing in 2025

New to Canada? You might be eligible for 10 tax credits and deductions that could save you thousands of dollars on your 2025 tax return. Filing taxes in a new country can feel overwhelming — but with TikiTax, you don’t have to figure it out alone. We’ll guide you through every step to help you clai

7/10/20252 min read

Just arrived in Canada and preparing for your first tax return? Don’t miss out on thousands of dollars in benefits just because of a lack of information. This guide highlights 10 essential tax credits and deductions that can help lower your taxes or increase your refund — especially for newcomers filing in 2025.

1. GST/HST Credit – Quarterly Tax-Free Support

If you're a Canadian resident as of the previous year and have low to moderate income, you may qualify for tax-free quarterly payments from the CRA. File your tax return to automatically be assessed for eligibility

2. Canada Workers Benefit (CWB) – Extra Support for Low-Income Workers

If you're earning a modest income from employment or self-employment, you may be eligible for $1,400 to $2,400 through the CWB. Having a T4 or self-employment income above a minimum threshold is required.

3. Climate Action Incentive (CAI) – Carbon Tax Rebate

Living in Ontario, Alberta, Saskatchewan, or Manitoba? You may qualify for the CAI rebate. This annual refund ranges from $250 to $1,000, depending on your family size and province

4. Medical Expense Deduction – Offset Health Costs

Medical, dental, and prescription costs that exceed 3% of your net income can be claimed. Newcomers often have high settlement-related expenses — this deduction can provide valuable relief

5. Tuition Tax Credit – For New Students in Canada

If you're attending a recognized Canadian college or university, you may claim tuition tax credits. Unused credits can be carried forward or transferred to a parent or spouse.

6. Canada Child Benefit (CCB) – Monthly Child Support

If you have children under 18 living with you in Canada, you may qualify for up to $7,400 per child annually through the CCB. Filing taxes is required to determine eligibility.

7. Moving Expenses Deduction – Tax Relief for Relocating

If you moved more than 40 km to start a new job or attend school, eligible expenses like transportation, storage, and temporary housing can be deducted.

8. RRSP Contribution Deduction – Save on Taxes Immediately

Even as a newcomer, you can open an RRSP. Contributions made in your first year of Canadian income are tax-deductible. Investment growth within the RRSP is also tax-deferred.

9. First-Time Home Buyer’s Amount – Tax Break for Your First Home

If you bought your first home in Canada and haven’t owned a property in the last 4 years, you can claim up to $10,000, reducing your tax bill by approximately $1,500.

10. Digital News Subscription Credit – Save on Paid News Access

Subscribed to eligible online news sources (e.g., CBC, Globe and Mail)? You can claim up to $500 per year in subscription costs as a non-refundable tax credit.

💡 Special Tips for Newcomers:

You need a SIN (Social Insurance Number) to file taxes and receive benefits.
Always file your return, even with low or zero income — you may still be eligible for credits.
Consider joint filing with your spouse to maximize family benefits.

🎯 How TikiTax Helps Newcomers File Taxes with Confidence

At TikiTax, we provide:

✅ 1:1 free consultation in English or Vietnamese
✅ Full eligibility check for all credits and deductions
✅ 100% online tax filing — even for multiple past years
✅ Maximum legal refunds — no benefit left behind

📞 Contact us today for a free consultation and start your financial journey in Canada with peace of mind.