If you're starting a new job in Ontario or switching employers, one of the first things your employer will ask you to complete is the TD1 and TD1-ON forms. These federal and provincial forms determine how much income tax should be deducted from your pay.
Filling them out correctly is essential—under-claiming means overpaying taxes, while over-claiming could leave you owing at tax time.
Here’s a step-by-step guide to help you complete them with confidence.
TD1 (Federal): Declares your federal personal tax credits.
TD1-ON (Ontario): Declares your Ontario provincial tax credits.
You need to complete these if:
You start a new job or receive a pension
Your personal situation changes (dependants, disability, etc.)
You want to increase or reduce the tax withheld
📥 Download: Federal TD1 2025 Form (CRA)
Line 1 – Basic Personal Amount
Enter $16,129 (everyone is entitled to this unless they make more than $177,882, in which case there is a reduction that needs to be calculated on the TD1-WS Worsheet).
Lines 2–12 – Other Credits (only if they apply to you)
Examples:
Line 3: Age amount if you're 65+ and earn under $45,522 → $9,028
Line 4: Pension income amount → Up to $2,000
Line 6: Disability amount → $10,138
Line 10: Canada caregiver for adult dependants → Up to $8,601
Line 13 – Total Claim Amount
Add lines 1 to 12. Your employer uses this amount to determine tax deductions.
Additional Fields in Page 2
Tick boxes if you have multiple jobs or if your total income will be under your claim amount, so no tax should be withheld.
📥 Download: Ontario TD1-ON 2025 Form (CRA)
Line 1 – Basic Personal Amount
Enter $12,122 (standard for all Ontario residents).
Lines 2–9 – Additional Credits (if applicable)
Examples:
Line 2: Age amount → $6,223 if you're 65+ and earn less than $46,330
Line 4: Disability amount → $10,298
Line 5: Spousal amount → Up to $10,823
Line 6: Eligible dependant → Up to $10,823
Line 10 – Total Claim Amount
Add lines 1 to 9. This will be used for Ontario tax deduction calculations.
✅ DO:
Use current year amounts (see above).
Notify your employer if your situation changes during the year.
🚫 DON’T:
Claim credits twice (federal and provincial amounts are different).
Forget to update your TD1 forms if you have a new job or reduced income.
The forms make mention of a few sections that apply for non-residents. In the context of Canadian taxes, a non-resident is someone who does not have significant residential ties to Canada. This affects whether you can claim personal tax credits on the TD1 form.
You are likely a non-resident if:
You live outside Canada most of the year
You do not have a home, spouse, or dependants in Canada
You only work temporarily (i.e. less than 183 days) in Canada and return to another country
You can ask your employer to withhold more tax (if you have side income) or less tax (if you claim deductions like RRSPs) using:
Additional Tax section on TD1 in Page 2
Form T1213 (to reduce tax with authorization from CRA)
Submit to your employer or payer, not the CRA.
Keep a copy for your records.
If you're unsure which credits you qualify for, have multiple jobs, or want to make sure your taxes are being withheld correctly, we’re here to help.
👉 Book a free consultation with Toro Accounting and let our team walk you through your TD1 and payroll setup with confidence.
📅 Schedule your call today
📧 Or email us at: office@toroaccounting.ca
Don’t risk owing at tax time—get it right from the start with expert support.