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The short answer
The TD1 tells your employer which personal tax credits to allow for when deducting tax from your pay. You fill in a federal TD1 and your province's TD1 when you start with a new employer, and most people with one job simply claim the basic personal amount. If you arrived in Canada part-way through the year, the CRA says special rules apply to the basic personal amount for people who moved to Canada, so claiming the full amount can leave too little tax deducted; ask the CRA or reduce the claim, and never claim it in full with two employers.
What the TD1 does
The CRA's TD1 page (updated 8 December 2025) says you complete Form TD1, Personal Tax Credits Return, if you have a new employer or payer and will receive salary, wages or other pay, or if you want to increase the tax deducted from your pay. Employers create both federal and provincial or territorial versions, so in practice you hand in two forms: the federal TD1 and your province's or territory's version.
You will also want to fill in a new TD1 when your situation changes in a way that affects your claims, for example when you leave one of two jobs, when a spouse joins you in Canada, or when you start receiving other income on which no tax is withheld.
The form does not change how much tax you finally owe. That is settled on your tax return. It changes how much is withheld along the way, which decides whether you get a refund or a bill in April.
The basic personal amount
The largest line on the form is the basic personal amount, the slice of income on which no federal tax is charged. The CRA's line 30000 page (modified 29 July 2026) gives the 2025 figures:
| 2025 basic personal amount | Amount | Applies when net income is |
|---|---|---|
| Federal, maximum | $16,129 | $177,882 or less |
| Federal, minimum | $14,538 | More than $253,414 |
| Provincial and territorial (outside Quebec) | $11,067 (NL) to $19,491 (SK) | Varies by province |
The 2026 amounts are printed on the 2026 TD1 forms your employer gives you. Use the figure on the form for the year you are filling it in.
If you arrived part-way through the year
This is where newcomers most often get it wrong. The CRA's line 30000 page says that if you moved to or from Canada during the year, "special rules apply" for claiming the basic personal amount, and directs you to contact the CRA. The CRA's newcomers page (dated 3 August 2026) says residence usually starts on the first day you live in Canada.
The practical risk is easy to see. Payroll withholds tax as if your claim applies to a full year of Canadian income. If special rules cut what you can actually claim for your arrival year, the tax withheld will be too low and the difference shows up as a balance owing when you file.
What to do
- Read the instructions printed on the 2026 TD1 itself for people who are immigrants or residents for part of the year, and follow them.
- If the form or your situation is unclear, call the CRA before you hand it in, and ask what to enter for your arrival date.
- If you prefer certainty over a refund, claim less than the full amount, or use the form's option to ask for additional tax to be deducted each pay.
- Keep a copy of what you submitted.
Other common situations
| Situation | What to think about |
|---|---|
| Two jobs at once | Claim the basic personal amount with one employer only. With both, each withholds as if it were your only job. |
| Spouse still in Nigeria | Spouse-related amounts depend on residence and income rules. Check before claiming; the newcomers page lists the spouse or common-law partner amount among credits newcomers may be able to claim. |
| Tuition from a Canadian college | Eligible tuition may reduce tax; ask payroll whether to reflect it on the TD1 or leave it for the return. |
| Other income (rent from Lagos, freelance) | Income with no tax withheld can leave a bill at filing; asking for extra tax on the TD1 spreads it across the year. |
| New provincial job after moving | You will need that province's TD1, not the old one. |
A worked example
Example only, with invented figures. Halima arrives in Toronto on 1 September 2026 and starts work on 15 September at $60,000 a year. If she claims the full federal and Ontario basic amounts, payroll assumes most of her September-to-December pay sits inside a full year's tax-free amounts, and withholds little. If the special rules for her arrival year reduce her claim, she will owe the difference in April 2027. A call to the CRA before handing in the forms, or a request for extra tax to be deducted, avoids the surprise.
Note too that income she earned in Nigeria before she became resident is not taxed in Canada, but the CRA asks newcomers to report it for benefit purposes. See your first return and income before arrival and reading your first payslip.
Where Pryme fits
If you still receive income in Nigeria, such as rent from a flat in Lagos, it matters both for Canadian tax and for how much tax is withheld here. A Pryme account keeps naira receipts separate from your Canadian pay, and you can generate a statement for your records through verifiable receipts and statements. See also Lagos rental income on your Canadian return.
Questions people ask
Do I need to fill in both the federal and provincial TD1?
Usually yes. The CRA says employers create federal and provincial or territorial TD1 forms, and you complete them when you start with a new employer.
Should I claim the full basic personal amount in my first year in Canada?
Not without checking. The CRA says special rules apply to the basic personal amount for people who moved to Canada during the year. Read the 2026 form's instructions or ask the CRA.
What is the basic personal amount for 2025?
The federal maximum is $16,129 for net income of $177,882 or less, reducing to $14,538 above $253,414. Provincial amounts range from $11,067 to $19,491 outside Quebec.
Can I ask my employer to deduct more tax?
Yes. The CRA's TD1 page says the form is also used when you want to increase the tax deducted from your pay.
Sources
- CRA: Form TD1, Personal Tax Credits Return (updated 8 December 2025) · accessed Oct 2026
- CRA: Line 30000, Basic personal amount (modified 29 July 2026) · accessed Oct 2026
- CRA: Newcomers to Canada (dated 3 August 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.