NETFILE vs Paper Filing in Canada (2026): Who Must File on Paper

Most Canadian returns can go through NETFILE, and few situations call for paper. NETFILE gets your refund in about two weeks instead of eight, catches math errors before submission, and when combined with CRA My Account’s Auto-fill feature, it imports your T4 and T5 slips automatically so you barely have to type. Free certified software like Wealthsimple Tax handles even self-employment and rental income at no cost. Paper filing is really only needed for certain first-time returns, non-resident situations, or returns going back more than three years.

This page compares the two submission methods; the rest of the process (documents, software, deductions) is in the guide to filing your taxes in Canada. First-time filers can cross-check filing taxes for the first time and then confirm submission in how to know if your tax return was accepted.

NETFILE vs Paper Filing

Quick Comparison

Factor	NETFILE	Paper
Refund time	2 weeks	8+ weeks
Confirmation	Immediate	By mail later
Accuracy	Error checking	Manual
Cost	Free (with free software)	Postage
Convenience	From home	Mail physically

What Is NETFILE?

Electronic Filing System

Feature	Details
What it is	CRA online submission
How it works	Use certified software
Transmission	Electronic to CRA
Confirmation	Immediately

Requirements

Need	Details
Certified software	CRA-approved list
SIN	Social Insurance Number
Prior return info	May need for verification
Internet	Obviously

NETFILE-certified software ranges from free to paid; the free tax software guide lists the no-cost options and their limits.

Benefits of NETFILE

Accuracy

Benefit	Details
Error checking	Software catches mistakes
Math calculated	Auto-calculated
Real-time validation	Before sending
Fewer rejections	CRA accepts immediately

Convenience

Feature	Benefit
File anytime	24/7 during season
From anywhere	Home, anywhere with internet
No mailing	Electronic submission
Keep copy	Digital records

Confirmation

NETFILE	Paper
Immediate confirmation number	Weeks to know received
Know if accepted	Hope it arrived
Record of submission	Keep mailing receipt

When Paper Filing Is Required

Situations Requiring Paper

Situation	Why Paper
First return in Canada	Sometimes
Certain non-resident	Depends
Prior year returns	>3 years back
Some amended returns	T1-ADJ
Certain business returns	Complex schedules

Mailing a paper T1-ADJ is one of several ways to fix a return already filed; changing a filed return compares it with the online options.

When Paper Might Be Preferred

Preference	Reason
Extremely complex	Attorney/accountant preference
No technology	Can’t use computer
CRA requested	Specific circumstances

How to NETFILE

Step-by-Step

Step	Action
1	Choose certified software
2	Gather tax documents
3	Enter information
4	Review return
5	NETFILE submit
6	Receive confirmation

Auto-Fill My Return

Feature	Details
What it is	CRA sends slips to software
Link account	CRA My Account to software
Auto-imports	T4, T5, etc.
Verify	Imported slips can be reviewed before filing

What NETFILE Can Handle

Can File	Yes/No
Employment income	Yes
Investment income	Yes
RRSP/TFSA	Yes
Self-employment	Yes (most)
Rental income	Yes
Basic business	Yes

How to Paper File

If You Must Paper File

Step	Action
1	Get forms from CRA
2	Complete by hand
3	Attach all slips
4	Mail to tax centre
5	Keep copies
6	Wait for assessment

Which tax centre receives your return depends on where you live; the addresses are listed on the CRA contact information page.

What to Include

Include	Notes
T1 General	Main return
Schedules	As applicable
Slips	T4, T5, etc.
Receipts	If specifically requested

Timing

Electronic returns are processed in about two weeks and paper returns in about eight, and direct deposit gets the money to you sooner than a mailed cheque. How long a tax refund takes has the full timelines and how to check your refund status. The dates each return is due, by either method, are in the tax filing deadline calendar.

After Filing

NETFILE Confirmation

You Receive	Details
Confirmation number	Save it
Timestamp	When filed
Status	Accepted/rejected

Either way, the CRA’s assessment arrives as a Notice of Assessment, online in My Account or by mail; how to read a Notice of Assessment explains it line by line.

Common Mistakes

Mistake	Solution
Missing slips	Use Auto-fill
SIN entered incorrectly	Double-check
Math errors	Software calculates
Missing signature	NETFILE doesn’t need

The Bottom Line

NETFILE with certified software is faster and checks your math, and with direct deposit the refund usually arrives in about two weeks. Auto-fill through CRA My Account imports your slips, and the confirmation number is your proof of submission. Keeping receipts for six years covers a CRA review. Paper remains the route for the situations above where NETFILE isn’t available.