International Student Working in Canada: Taxes and Finance Guide

International students who work in Canada pay tax here like any other worker, and most are Canadian tax residents while they study. This guide covers residency for students, getting a SIN, reading a T4, CPP and EI, the credits students can claim and how to file. It is one of the international and cross-border tax guides.

Tax Residency Status for International Students

Situation	Tax Residency	Filing Obligation
Study permit holder living in Canada year-round	Canadian tax resident	File T1; report worldwide income
Student with Canadian housing, bank account, and ties	Canadian tax resident	File T1
International student in Canada 8+ months of the year	Generally Canadian resident	File T1
Cross-border student commuting from USA	Depends on ties; may be non-resident	Consult CRA or a cross-border tax advisor
Student on exchange for under 6 months with no ties	May be non-resident	Only Canadian-source income reported

Residents report worldwide income, so money earned at home during the year counts too. The residential ties test behind these outcomes is explained in am I a Canadian tax resident.

Getting Your SIN as an International Student

Step	Detail
Ensure you have work authorization	Study permit must include condition allowing work (on-campus, or off-campus permit condition)
Apply at Service Canada	In-person with study permit + passport + proof of address
SIN prefix	Begins with 9; valid only during your current permit
Renew your SIN when permit renews	Bring renewed study permit to Service Canada
Give SIN to employer	Required before first paycheque for payroll setup
Use on tax return	Same SIN used on your T1 return

Understanding Your T4 as a Student

T4 Box	What It Shows	What to Do with It
Box 14	Total employment income	Line 10100 on T1 return
Box 16	CPP contributions deducted	Line 30800 (generates CPP tax credit)
Box 18	EI premiums deducted	Line 31200 (generates EI tax credit)
Box 22	Income tax withheld	Line 43700 (tax already paid; may generate refund)

CPP and EI for International Students

Item	Detail
CPP contributions mandatory	Yes, deducted from all Canadian employment income
CPP pension eligibility	No minimum years; one valid contribution qualifies you for a pension at 60+ (OAS, by contrast, needs 10 years of Canadian residency)
Totalization Agreement benefit	Combine Canadian and home-country contribution years to qualify for each country’s pension
EI contributions mandatory	Yes
EI benefit eligibility	Yes, if you lose a job, have valid study permit with work authorization, and enough insurable hours
Minimum hours for EI	420–700 insurable hours (depends on regional unemployment rate)

Investment Accounts Available to International Students

Account	Available to Students	Key Rule
TFSA	Yes, if 18+ and Canadian tax resident	$7,000/year; stop if you become non-resident
RRSP	Yes, if you have earned income (T4)	18% of prior year earned income; practical for students with larger part-time incomes
FHSA	Yes, if planning to buy a home	$8,000/year; must intend to buy in Canada
Non-registered account	Yes	Capital gains taxable
RESP (as a beneficiary)	Only if Canadian resident	Your parents/sponsor can contribute to RESP naming you as beneficiary

Tax Credits and Benefits Available to International Students

Benefit / Credit	Eligibility	Value
Tuition tax credit (T2202)	Any Canadian university or college; T2202 slip required	14% federal credit on tuition paid; carry forward if not used
GST/HST Credit (now the Canada Groceries and Essentials Benefit)	File T1; low to moderate income	Up to $679/year (single); paid quarterly
Canada Carbon Rebate	N/A, program eliminated	Discontinued; final payment was April 2025
Canada Workers Benefit	Working income under threshold	Up to $1,633/year (single); $2,813/year (family)
Textbook and education amount	Eliminated federally in 2017; some provinces still have it	Varies by province
Moving expenses	Moved 40km+ closer to school or a new job; eligible income required	A move to study full-time: deductible only from the taxable part of scholarships, bursaries and research grants; a move for a job: from employment income earned at the new location
Public transit pass	Federal credit eliminated; some provinces have credits	Check your province

Scholarship and Bursary Tax Rules

Income Type	Taxable?	T Slip
Scholarship / bursary (full-time student)	Exempt, not taxable	T4A Box 105
Scholarship / bursary (part-time student)	Exempt up to tuition paid	T4A Box 105
Research grant	Taxable income	T4A Box 104
TA / RA paid via payroll by employer	Fully taxable employment income	T4 Box 14
Athlete grant / Canada Summer Games	Partially exempt	T4A
Provincial student assistance (bursary)	Exempt if educational institution issues it	T4A Box 105

Tax Treaties: Student Exemptions

Some tax treaties include provisions specifically for students. Check if your home country’s treaty provides:

An exemption from Canadian tax on part-time income from performing services (for students maintaining home-country residency)
Reduced withholding on scholarship or fellowship income
A period during which you are treated as a non-resident despite living in Canada (rare; treaty-specific)

Common countries with student provisions in their Canada treaties: USA (Article XX: students excluded from Canadian tax on remittances from home), Germany, Netherlands, UK.

Filing Your T1 Return as an International Student

Step	Detail
1	Collect T4 (employment), T4A (scholarship, bursary), T2202 (tuition)
2	Use CRA NETFILE software: Wealthsimple Tax (free), TurboTax, CloudTax
3	Enter SIN (starts with 9 is fine)
4	Select “Canadian resident” if you have residential ties
5	Enter tuition (T2202 amounts) on Schedule 11
6	Enter employment income from T4
7	Enter scholarship/bursary from T4A Box 105
8	File by April 30

What Happens to Your Tax Records When You Graduate and Leave Canada

Item	Effect When You Leave
TFSA	Stop contributing; account stays open under non-resident rules
Unused tuition credits	Can carry forward indefinitely on your Canadian return; OR transfer to a parent (up to $5,000 per year)
CRA My Account	Remains accessible from abroad
RRSP (if any)	Stays; withdrawals subject to 25% withholding as non-resident
Final tax return	File a departure return (part-year resident) for the year you leave

The departure return and what happens to accounts after you leave are covered in the leaving Canada tax checklist.