Who must file a tax return and by when
Filing returns of income
Section 150 requires every resident of Canada to file an annual income tax return if they owe tax or meet certain income thresholds, and sets the filing deadlines — April 30 for most individuals, June 15 for self-employed persons.
Plain-language explanation
Section 150 establishes the obligation to file an annual T1 income tax return. Filing on time is important to avoid penalties under s.162 and interest under s.161 on amounts owing.
Who must file (s.150(1)(d)): You must file a return if: - You owe tax for the year (or would owe but for tax withheld), - You have a capital gain or disposed of capital property, - CRA sent you a demand to file, - You want to claim a refund, receive benefit payments (CCB, GST credit, OAS), or create RRSP contribution room.
Deadlines (s.150(1)): - *Most individuals:* April 30 of the following year. If April 30 falls on a weekend, the deadline is the next business day. - *Self-employed individuals and their spouses:* June 15 of the following year (but any balance owing is still due April 30 — you must pay by April 30 to avoid interest even if you file by June 15). - *Deceased taxpayers:* Later of April 30 and six months after the date of death. - *Corporations:* Six months after the fiscal year end (but instalments and balance due are due earlier).
Why file even if you have no income: Many government benefits (CCB, GST credit, GIS) require a filed return to be calculated. Low-income Canadians who don't file miss out on thousands in refundable credits.
Example
Marcus is self-employed. He had $90,000 in business income in 2025 and estimates he owes $15,000 after withholding. He must pay the $15,000 balance by April 30, 2026 to stop interest from accumulating. He has until June 15, 2026 to file his return. If he pays by April 30 but files in June, there is no late-filing penalty.
Amendment history
Significant changes to this provision. Older versions help you understand rules that applied in prior tax years.
CRA introduced the "File My Return" automatic filing service for low-income Canadians with simple tax situations, filing their returns automatically from CRA data — reducing non-filing among the most vulnerable populations.
Common questions
What is the penalty for filing late? +
Under s.162(1), the late-filing penalty is 5% of unpaid tax plus 1% per complete month late (maximum 12 months). For a second late filing within three years, the penalty doubles to 10% plus 2% per month (maximum 20 months).
Do I have to file a return if I have no income? +
You are not required to file if you have zero income and zero tax owing. However, you should still file to claim refundable credits (GST credit, CCB) and to track RRSP contribution room. Many low-income Canadians lose thousands in refundable credits by not filing.
Key terms
Related sections
Source: Income Tax Act, RSC 1985, c. 1 (5th Supp.), section 150. — Read the official text on Justice Canada
These summaries are for educational purposes only and do not constitute legal or tax advice. Speak with a CPA for advice on your specific situation.