Filing taxes can be stressful, especially if you're worried about how much it will cost or if you're not sure where to start. But getting your taxes done is essential—it’s the key to unlocking refunds and tax credits that can make a real difference in your finances. Plus, filing on time helps you avoid costly late penalties that can add to your debt.
In Canada, there are free options available to make tax filing accessible for everyone. These resources can help you save money, avoid mistakes, and make sure you're not missing out on benefits. Read on to learn about no-cost ways to file your taxes and step-by-step guidance on how to maximize these resources.
Why Filing Taxes Matters
While filing a tax return may bring up feelings of dread—especially if you anticipate owing a balance on your return—it’s crucial to file on time. Some people feel overwhelmed by the process or avoid doing their taxes because they think they don't earn enough money to file. Others might not know how to or fear they owe money but can’t afford to pay.
Whatever the reason, not filing can have serious financial implications, including penalties, interest charges, and the temporary loss of some government benefits like the Canada Child Benefit and GST/HST credits, which can provide financial support throughout the year. According to the CRA, approximately 10% of Canadians annually fail to file their tax returns and the agency saw an increase in late filings in 2024. Those Canadians who don’t file miss out on benefits they are otherwise eligible for.
If you skip filing and owe taxes, you’ll face penalties and interest that can quickly add up. Once the tax deadline passes, the Canada Revenue Agency (CRA) starts charging interest on any unpaid taxes, beginning May 1st. If you're late filing, you'll face a late-filing penalty too. This penalty starts at 5% of the balance you owe, plus an additional 1% for every month it’s late, up to a maximum of 12 months.
Even if you can’t pay the full amount, filing on time will help you avoid these charges and prevent you from taking on unnecessary debt. If you don’t owe taxes, you can file after the deadline with no penalties. However, if you expect a refund, the CRA won’t issue your money until you file your return.
"In Credit Canada GOLD, we had a participant who had not filed in 14 years. She had worked in the same job for over 20 years and had all the regular deductions, including income tax, from her paycheques. But 14 years prior to her doing GOLD, she became overwhelmed about filing taxes and stopped. We supported her through getting everything together and filing the taxes. She received a net refund of $18,484! She used it to pay down a significant portion of her debt."
- Becky Western-Macfadyen, Financial Coaching and Education Manager, Credit Canada
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Who Can File Taxes for Free in Canada?
If you live in Canada, you must file a tax return with the CRA each year by April 30, though self-employed individuals have until June 15. These requirements apply to all Canadian residents, as well as international students, seasonal workers, Indigenous peoples, and non-residents with Canadian income.
Several resources for free tax filing are available for Canadians who meet certain eligibility criteria. Generally, these services are available to low-income individuals and those with simple tax situations, as well as specific demographics like seniors and students. If your income is below a certain threshold—typically around $35,000 for individuals and $45,000 for families—you likely qualify for free filing services. However, if your finances are a bit more complicated—you have multiple investment properties, self-employment income, or a diverse investment portfolio—you might need to seek professional help to ensure everything is filed correctly.
Free tax filing services are available depending on where you live, and eligibility can vary by province. The table below can help you understand what’s available in your area, depending on your financial situation.
|
Province/Territory |
Eligibility Criteria for Free Filing |
|
British Columbia |
Low-income individuals (under $35,000), families (under $45,000), seniors, students, people with simple returns |
|
Alberta |
Low-income individuals (under $35,000), seniors, students, people with simple returns |
|
Saskatchewan |
Low-income individuals (under $35,000), seniors, students, people with simple returns |
|
Manitoba |
Low-income individuals and families (under $35,000), seniors, students with straightforward returns |
|
Ontario |
Low-income individuals (under $35,000), families (under $45,000), seniors, students, people with simple returns |
|
Quebec |
Low-income earners (under $35,000), seniors, students, people with simple returns |
|
New Brunswick |
Low-income individuals (under $35,000), seniors, students with straightforward returns |
|
Nova Scotia |
Low-income individuals (under $35,000), seniors, students, simple returns for people in need of assistance |
|
Prince Edward Island |
Low-income individuals (under $35,000), seniors, students, simple returns |
|
Newfoundland and Labrador |
Low-income individuals (under $35,000), seniors, students with straightforward returns |
|
Yukon |
Low-income individuals, seniors, students, people with simple returns |
|
Northwest Territories |
Low-income individuals, seniors, students, people with simple returns |
|
Nunavut |
Low-income individuals, seniors, students, people with simple returns |
Free Tax Filing Options in Canada
For Canadians looking to file their taxes without the extra cost, the Community Volunteer Income Tax Program (CVITP) offers free tax clinics for individuals with low incomes and simple tax situations, as well as seniors, students, and newcomers to Canada. Hosted by community organizations across Canada, volunteers can help you file your taxes at local libraries, community centres, non-profits, and other public locations. You can find a location nearest you through the CRA website.
If you prefer filing online, there are several free tax software options like TurboTax Free and Wealthsimple Tax. These tools guide you through the process and allow you to file your taxes directly from your computer or smartphone, with no fees for basic returns.
Tips for Maximizing Free Tax Resources
Filing your taxes doesn’t have to be stressful. If you prepare ahead of time, you’ll be able to navigate the process smoothly. Start by gathering the necessary documents like your T4 from your employer, any T5 or T3 slips for investment income, and receipts for any deductions you plan to claim. Set up a file folder to organize receipts throughout the year as they're received. That way, come tax time, and you’ll already have all the paperwork you need to file. It’s also a good idea to log into your CRA account to check your tax history and confirm your eligibility for any benefits.
When using free tax filing services, keep in mind that these tools may not cover all tax situations, especially if you’re self-employed or have rental income. Even if the process may seem simple, always double-check the details you enter. A small mistake could lead to delays or missed deductions, so it’s worth taking the time to make sure everything is correct.
"Although filing your taxes will not directly impact your credit, timely tax filing can help to improve your overall financial health. It will ensure you are receiving all benefits and credit’s you are entitled to (example Canada Child Benefit, Ontario Trillium Benefit) which can help you to manage your monthly expenses and address any outstanding debts which may be affecting your credit."
- Randolph Taylor, Credit Counsellor at Credit Canada
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Provincial Tax Credits and Benefits You Should Know
Filing your taxes doesn't just include federal credits—each province offers its own tax benefits that can either lower your tax bill or boost your refund. Some of these provincial tax credits are available for all residents to help with everyday living costs, while others are aimed at specific groups, like low-income families or those who make environmentally conscious choices. Here’s a look at some key provincial tax credits across Canada:
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Ontario Trillium Benefit: A monthly payment that combines the Ontario Energy and Property Tax Credit, the Ontario Sales Tax Credit, and the Northern Ontario Energy Credit, aimed at helping lower-income individuals and families.
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B.C. Climate Action Tax Credit: Helps offset carbon taxes in British Columbia, providing a quarterly payment to low-to-moderate income residents.
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Quebec Solidarity Tax Credit: A combination of credits for low-income individuals and families in Quebec, covering things like sales tax and housing costs.
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Manitoba Family Tax Benefit: Aimed at low-income families with children, this benefit helps with the costs of raising kids in Manitoba.
-
Nova Scotia Affordable Living Tax Credit: Provides financial relief for low-income residents of Nova Scotia to help with basic living expenses.
-
Alberta Family Employment Tax Credit: Helps working families with low to moderate income in Alberta by offering a refundable benefit, supporting families with children.
When to Consider Professional Help Instead
Sometimes, free resources may not be enough to tackle more complex financial situations. If you’re self-employed or earning rental income, free tools might not give you the personalized guidance you need, especially when it comes to managing taxes, budgeting, or handling debt. These situations often require specialized knowledge from a professional.
As a trusted non-profit offering free financial advice, Credit Canada is here to help you navigate tax filing in Canada and explore tax debt relief solutions. Chat with our AI Agent, Mariposa or sign up for our newsletter for expert tips.
