Frequently Asked Questions
As experts in Canadian payroll legislation, we’re often asked about income tax. Here’s a list of our most frequently asked questions.
What is TD1?
TD1, Personal Tax Credits Return, is a form used to determine the amount of tax to be deducted from an individual's employment income or other income, such as pension income.
There are federal and provincial/territorial TD1 forms. Individuals complete these forms and provide them to their employer who keeps the completed documents with their records.
Who should complete the TD1 form?
Individuals who meet one of the following criteria should complete the form and provide it to their employer:
- have a new employer or payer
- want to change amounts from previous claimed
- want to claim the deduction for living in a prescribed zone
- want to increase the amount of tax deducted at source
Individuals do not have to complete a new TD1 every year unless there is a change to their federal, provincial, or territorial personal tax credit amounts.
What are the federal TD1 changes for 2025?
See our 2025 Canadian Payroll Year-End Guide for a table outlining the federal TD1 changes for 2025.
What are the provincial TD1 changes for 2025?
See our 2025 Canadian Payroll Year-End Guide for a table outlining the provincial TD1 changes for 2025.
Additional Resources
*If the employee's taxable income from all sources for the year is $25,000 or less, you may complete the TD1NS-WS Worksheet to calculate your partial claim for eligible tax credits.
**If your taxable income from all sources for the year is $151,978 or less, you may complete the TD1YT-WS Worksheet to calculate your partial claim for eligible tax credits.