Let me start by congratulating you for moving to Canada, the land of great possibilities. Regardless of where you are coming from, there are many reasons to be in Canada.
The U.S. News & World Report for 2021 ranks Canada as the overall best country in the world based on the quality of life, social purpose, business friendliness, and other factors. This ranking complements so many other rankings of Canada as one of the best places to live in the world.
So it is not surprising that Canada remains one of the leading options for immigrants around the world looking for a country with job opportunities, political stability, tight security, basic amenities and a better standard of living.
The interesting part is that newcomers in Canada are warmly welcomed with numerous financial benefits and credits to help them have a smooth transition.
So what are the new immigrants to Canada benefits? In this post, we’ll explore the benefits and credits available to you as a new Canadian immigrant.
4 New Immigrants to Canada Benefits
Immigrating to another country can be overwhelming and costly. Fortunately, the Canadian government (through the Canada Revenue Agency, CRA) administers several benefits to eligible new immigrants to ease the process.
The following are some of the benefits and credits you will be eligible for as a new immigrant in Canada.
1. Canada Child Benefit (CCB)
The Canada Child Benefit aims to reduce the cost of raising children in Canada for parents with children under the age of 18.
You will be eligible for this benefit if you meet the following requirements:
- You or your spouse/common-law partner are a citizen or resident of Canada, a protected person or a recognized Indian
- You’re a Canadian resident for tax purposes
- You live and serve as the primary caregiver of a child that’s below the age of 18
The amount of CCB benefits you get will depend on your adjusted family net income (AFNI), the number of children you care for, the number of children below the age of 18, and your marital status.
If you have a $32,028 adjusted family net income (AFNI) or less, you will receive up to $6,833 for every child that’s below the age of 6 and $5,765 per 6-7-year child (for the 2021/2022 payment period).
The Canada Child Benefit comprises benefits from the federal and provincial/territorial governments where applicable. It is administered by the CRA and paid monthly to eligible Canadian residents. The following are the payment date for 2022:
- January 20, 2022
- February 18, 2022
- March 18, 2022
- April 20, 2022
- May 20, 2022
- June 20, 2022
- July 20, 2022
- August 19, 2022
- September 20, 2022
- October 20, 2022
- November 18, 2022
- December 13, 2022
You are expected to wait till after 5 working days of the CCB payment date before you can contact the CRA if the payment didn’t arrive.
Learn more: CCB Payment Dates
2. Disability Tax Credit (DTC)
The Disability Tax Credit (DTC) is also administered by the CRA to eligible individuals with prolonged physical or mental disabilities. The benefit aims to reduce the income taxes of individuals with mental or physical disabilities or their caregivers.
To be eligible for this credit, you must have a recognized or eligible physical or mental disabilities related to:
- Hearing
- Vision
- Walking
- Speaking
- Feeding
- Dressing
- Everyday-life mental functions
- Life-sustaining therapy
How much Disability Tax Credit you get depends on your disability type, disability impact and age. The credit comprises standard supplementary credits. You will earn both the standard DTC and supplement credit if you are under the age of 18.
The interesting part is that you or your caregiver can request up to 10 years of retrospective Disability Tax Credit once you are eligible for those periods.
For 2021/2022, the maximum amount was $8,662 and the maximum supplement for eligible persons under the age of 18 was $5,053.
Like other credits to Canadian newcomers, you need to file your taxes to claim the Disability Tax Credit. This is not a limitation since you can file your taxes even if you don’t have any income.
3. Child Disability Benefit (CDB)
The Child Disability Benefit (CDB) is administered automatically to the recipients of the Canada Child Benefit (CCB) whose children meet the requirements for the Disability Tax Credit (DTC).
If you’re not receiving the CCB and your child meets DTC eligibility, you need to apply for the CDB by completing Form T2201, Disability Tax Credit Certificate.
As a supplementary benefit, the CDB is administered alongside the CCB on the same dates. The amount of CDB you get depends on your adjusted family net income, number of eligible children and marital status.
However, you will receive a maximum monthly payment of $242.91 for July 2021 to June 2022 payment period.
You will receive the CDB tax-free monthly benefits only when you’re entitled to a minimum of $240 annual benefits. If you’re entitled to less than the amount, you will receive a one-lump sum payment.
That said, you’ll only receive the CDB if you have a child under the age of 18 who has an eligible prolonged mental or physical disability. If you share the custody of a child, the benefit will be administered to the child’s primary caregiver.
4. Goods and Services Tax/Harmonized Sales Tax (GST/HST) Credit
The Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit is one of the major credits administered to newcomers to Canada. The GST/HST credit aims to offset the goods and services taxes paid by low-medium income families in Canada.
Once you reach the minimum age of 19, have/had a spouse/common-law partner, live/lived with a child and file your annual income taxes, you will automatically receive the GST/HST credit.
How much GST/HST credit you get depends on your marital status, the number of children that are below 19 years and your individual/family net income.
If you’re single, you will receive a maximum of $456 GST/HST credit for the 2021/2022 payment period. For the same period, a couple or common-law partner will get up to $598 GST/HST credit.
Administered quarterly by the CRA, below are the GST/HST payment dates for 2022:
- January 5, 2022
- April 5, 2022
- July 5, 2022
- October 5, 2022
You’re expected to wait until after 10 working days of the credit payment before you can contact the CRA if you didn’t receive your payment.
Learn more: GST/HST Payment Dates
How Much Money Do Immigrants Get in Canada?
From the above discussion, it’s obvious that the amount of benefits immigrants get in Canada depends on so many factors, including:
- Entitled benefit/credit
- Marital status
- Number of eligible children
- Health status
- Income level
In the first year, your income from your home country will be used to calculate how much benefit you’re entitled to in Canada. Subsequently, your Canadian income and any other income earned worldwide is used.
Based on the above factors, the amount you’re eligible for will be calculated and paid according to the payment schedule of the benefit program.
The following table highlights the maximum amount you can receive in 2022 as a new immigrant to Canada under the above benefits/credits.
| Benefit/Credit | Maximum Amount |
|---|---|
| Canada Child Benefit | $6,833 for every child that’s below the age of 6 (note: you must have $32,028 or less adjusted family net income to be eligible) |
| Disability Tax Credit | $8,870 plus $5,174 additional supplement for eligible children below the age of 18 |
| Child Disability Benefit | $242.91 per month |
| GST/HST | $456 per single individual and $598 per couple or common-law partner |
You can claim as many as the benefits/credits you qualify for without any penalty. This will provide you with more cash flow as you familiarize yourself with the Canadian financial system.
When Can I Apply for New Immigrants to Canada Benefits?
You can apply for the above new immigrants to Canada benefits/credits within the first few weeks of immigration to Canada.
Usually, you only need to get your Social Insurance Number (SIN) and meet the eligibility of the benefits/credit before applying.
While some of the new immigrants to Canada benefits/credits require you to file your taxes before you can apply, others allow you to apply even without filing taxes or using your income from your home country.
However, to continue getting the benefits/credit, you will need to file your annual tax return regardless of whether you earn income or not.
Additional Benefits For New Immigrants to Canada
Now that you know some of the government benefits available to new immigrants to Canada, it’s time to learn about other related benefits.
As one of the best countries in the world, you can expect to enjoy financial, economic, political, social, and other benefits in Canada.
In the following section, we will discuss some of the major benefits newcomers to Canada can enjoy.
1. Job Opportunities
Jobs in Canada have been on the increase for long and the situation was compounded by the pandemic. As of March 2022 alone, there were over a million job vacancies in Canada across different sectors and parts of the country.
This is related to the increased number of business opportunities in Canada that boosted the GDP of the country in the first quarter of 2022.
So if you’re immigrating to Canada for a job purpose, there are several job opportunities to choose from once you land.
2. Better Standard of Living
Depending on the country you’re immigrating from and your current standard of living, you may find the standard of living in Canada relatively better.
Quality of life was one of the major factors that the U.S. News & World Report of 2021 considered to rank Canada as the overall world’s best country.
This is justifiable in the light of the easy access to several basic amenities in the country ranging from health care, housing, education, transportation, sports, leisure and entertainment.
For example, the Canadian federal government alongside provincial and territorial governments offers free health insurance coverage that covers the costs of most medical and emergency services.
Additionally, the Canadian federal government alongside provincial and territorial governments also offers grants, student loans and scholarships to ease the cost of education in the country. You can learn about these benefits under the CRA Student Aid page.
3. Safety
Canada is ranked by several reputable bodies as one of the safest countries in the world with Toronto being the world’s second-safest city according to The Economist’s Safe Cities Index report for 2021.
Such rankings are based on the fact that Canada has a low level of crime, disaster, risk and other security-related threats.
With this, you can be sure that you, your family and your property are safe by immigrating to Canada.
4. Cultural Diversity
The beauty of Canada also lies in its cultural diversity, as The Top Ten’s world’s 2nd multicultural country.
Immigrants from over 200 countries with different religions, races and cultures assemble to make Canada what it is today.
What this means is that you’re more than likely to meet a fellow Canadian that’s of the same country, race, culture and religion as you.
With such diversity, you will have the sense of inclusiveness and freedom to express your unique self without fear of intimidation.
5. Settlement Supports
The Canadian government offers new immigrants numerous settlement support to help them have a smooth transition. This includes monthly income support and start-up allowance.
The settlement supports are usually administered by the Immigration, Refugees and Citizenship Canada (IRCC) and the Ministry of Immigration, Francisation and Integration (MIFI) (for Quebec immigrants).
You can check your settlement support eligibility before or after your immigration to Canada.
Final Thoughts
New immigrants to Canada benefits cannot be overemphasized. Whether you’re planning to immigrate or have immigrated, claiming these benefits will help you have a smooth landing.
While you can get some of the above government benefits in your first year without filing your taxes, you need to file your taxes to keep receiving them in the future.
However, you shouldn’t limit yourself to government benefits alone as there are several income opportunities to explore in Canada.
Once you start earning income, the next thing you want to do in your early days in Canada is to keep your finances. Part of the things you need to succeed in managing your finances is by identifying some of the best personal finance products and services in Canada.
Fortunately, you can do so with ease as this blog covers some of the best personal finance topics in Canada, such as:
- Best Bank Accounts for Newcomers to Canada
- How Interac e-Transfer Works
- 11 Best No-Fee Credit Cards in Canada
- Best Investments in Canada
- 5 Smart & Easy Ways To Reduce Your Taxes in Canada
- 8 Best Free Tax Software For Tax Filing in Canada
These are just a few! Ensure you go through our other blog posts to learn more about the financial industry in Canada.
If you have any questions or concerns, kindly let me in the comment section or contact page and I will respond as soon as possible.
Finally, I invite you to subscribe to our newsletter to stay updated about the best and most current financial deals in Canada.
I wish you a happy and successful stay in Canada!
