At a Glance
Every employee in Canada must complete a federal TD1 form (Personal Tax Credits Return) when they start a new job. If you work in British Columbia, you also need to fill out a TD1BC form. These forms tell your employer how much income tax to withhold from each paycheque based on the personal tax credits you are entitled to claim.
This guide walks through every line of both the federal TD1 and the BC TD1BC for 2026, with the updated personal amounts that took effect on January 1, 2026.
2026 Key Figures at a Glance
| Credit | Federal (TD1) | BC (TD1BC) |
|---|---|---|
| Basic personal amount | $16,452 | $13,216 |
| Age amount (65+) | $9,208 | $5,927 |
| Disability amount | $10,341 | $10,341 |
| Pension income amount | Up to $2,000 | Up to $1,000 |
| Lowest tax bracket rate | 14% | 5.06% |
When Must You Fill Out a TD1 Form?
You are required to complete a new TD1 (and the applicable provincial TD1) when any of the following apply:
- You start a new job or begin receiving pension income.
- Your personal situation changes in a way that affects your tax credits — for example, you get married or separated, a dependant is born, a dependant turns 18, you or a family member becomes eligible for the disability tax credit, or you begin attending post-secondary education.
- You want to increase or decrease the amount of tax withheld from your paycheque.
- You have a second concurrent employer or payer.
If none of these apply and you filed a TD1 with your current employer in a previous year, you do not need to submit a new one. Your employer will automatically index the basic personal amount and other credit amounts for 2026.
Pro tip from our CPA team: If you had a major life change in 2025 (marriage, new child, separation) and did not update your TD1 at the time, you should submit a new one now. Waiting until year-end means you will have been over- or under-taxed on your paycheques for months.
Step-by-Step: Filling Out the Federal TD1 (2026)
The federal TD1 form has 13 lines plus a section for additional tax withholding. Here is what each line asks for and how to complete it.
Line 1 — Basic Personal Amount
Every Canadian resident can claim $16,452. Enter this amount on Line 1.
However, if your net income from all sources will exceed $181,440 in 2026, the basic personal amount is gradually reduced (or "clawed back"). If your income will be above $181,440 but below $258,482, you should use the TD1-WS worksheet to calculate a partial claim. If your income will exceed $258,482, your basic personal amount is reduced to $14,829.
For most employees with a single job earning under $181,440, simply enter $16,452.
Line 2 — Canada Caregiver Amount for Infirm Children Under 18
If you have a child born in 2009 or later who has a physical or mental impairment and who lives with you, you can claim $2,740 per eligible child. Only one parent can claim this amount per child. If both parents live with the child, decide between yourselves who will claim it. If the child does not live with both parents, the parent claiming the "eligible dependant" amount on Line 8 can also claim this amount.
Line 3 — Age Amount
If you will be 65 or older on December 31, 2026, and your net income for the year from all sources will be $46,432 or less, enter $9,208. If your net income will be between $46,432 and $107,819, use the TD1-WS worksheet to calculate a partial amount. If your income exceeds $107,819, you cannot claim the age amount.
Line 4 — Pension Income Amount
If you receive regular pension payments from a registered pension plan or fund (not including CPP, QPP, OAS, or GIS), enter the lesser of your annual pension income or $2,000.
Line 5 — Tuition
If you are a full-time or part-time student at a qualifying post-secondary institution and will pay more than $100 in tuition fees in 2026, enter the total tuition fees you expect to pay. This includes tuition for the current year only — carry-forward amounts from previous years are claimed on your annual tax return, not on the TD1.
Line 6 — Disability Amount
If you have an approved T2201 (Disability Tax Credit Certificate) on file with the CRA, enter $10,341. Do not claim this amount unless the CRA has approved your T2201 — submitting the TD1 with a disability claim that has not been approved can result in under-withholding and a balance owing at year-end.
Line 7 — Spouse or Common-Law Partner Amount
If you are supporting a spouse or common-law partner whose net income for the year will be less than $16,452, you can claim the difference. For example, if your spouse's income will be $5,000, your claim is $16,452 - $5,000 = $11,452. If your spouse has a physical or mental impairment, you may be able to claim an additional caregiver amount — use the TD1-WS worksheet to calculate.
Line 8 — Amount for an Eligible Dependant
If you are single, divorced, separated, or widowed and you support a dependent relative who lives with you, you can claim this amount. The dependent must be your (or your spouse's) parent or grandparent, or a child under 18. The calculation is similar to the spouse amount — claim $16,452 minus the dependant's net income.
Lines 9-12 — Additional Credits
Line 9 covers amounts transferred from your spouse or common-law partner (unused age, pension, tuition, or disability amounts). Line 10 is for amounts transferred from a dependant. Line 11 is for northern residents who live in a prescribed zone. Line 12 allows you to enter any additional tax credits authorized by the CRA.
Line 13 — Total Claim Amount
Add up all the amounts from Lines 1 through 12. This is the total that your employer will use, along with the CRA's payroll deduction tables, to determine how much federal tax to withhold from each pay.
Important: If you have more than one employer at the same time, you can only claim personal credits on one TD1. On the TD1 for your second (and any additional) employer, check the box indicating multiple employers and enter $0 on Line 13. This ensures you are not under-withheld.
Step-by-Step: Filling Out the TD1BC (2026)
The TD1BC follows a similar structure but with different amounts reflecting British Columbia's provincial tax credits.
The BC basic personal amount for 2026 is $13,216. You must enter this on Line 1 of the TD1BC (unless you have more than one employer, in which case you enter $0 on the second form).
The remaining lines mirror the federal form but with BC-specific amounts. The BC age amount is $5,927, the BC pension income amount is up to $1,000, and other credits have their own BC-specific values. Refer to the TD1BC-WS worksheet if you need to calculate partial amounts for any line.
As with the federal TD1, if your total claim on the TD1BC is only the basic personal amount ($13,216), you do not need to complete the rest of the form — your employer will use the default basic amount.
Common Mistakes When Filling Out TD1 and TD1BC Forms
- Claiming credits on multiple TD1 forms when you have two jobs. If you work two jobs simultaneously, you can only claim the full personal tax credits on one TD1. The second employer's TD1 must show $0 on Line 13. Failing to do this results in under-withholding and a tax bill at year-end.
- Not updating the form after a life change. If you get married, have a child, or your spouse starts earning income, your credits change. Failing to update your TD1 can result in months of incorrect withholding.
- Claiming the disability amount without an approved T2201. The disability amount is only available if the CRA has approved your Disability Tax Credit Certificate. Claiming it prematurely will result in too little tax being withheld.
- Confusing the TD1 with your annual tax return. The TD1 only determines how much tax your employer withholds. It does not replace filing your annual T1 return. You may still owe additional tax or receive a refund at year-end regardless of what you claim on the TD1.
- Using last year's amounts on the current year's form. The basic personal amount and other credits are indexed annually. Always use the current year's form, available from Canada.ca.
When to Submit a TD1 Mid-Year
You can submit a new TD1 to your employer at any time during the year. There is no deadline — your employer must process the new form for the next pay period after receiving it. Common reasons for a mid-year update include getting married or entering a common-law relationship, birth or adoption of a child, separation or divorce, a dependant turning 18 or leaving your household, and receiving CRA approval for the Disability Tax Credit.
If your employer handles payroll through a professional service, the updated TD1 information is typically reflected in the very next pay cycle.
Frequently Asked Questions
Do I need to fill out a TD1 every year?
No. You only need to file a new TD1 when your personal tax credit situation changes — for example, when you start a new job, gain or lose a dependant, get married or separated, or become eligible for the disability amount. Your employer will automatically index the basic personal amount each year. However, if you want to ensure accuracy, you can submit a new form at any time.
What happens if I don't fill out a TD1 form?
If you do not submit a TD1 form to your employer, they will deduct taxes using only the basic personal amount (Claim Code 1). You will not receive credit for any additional amounts you may be entitled to, such as the spouse amount, disability amount, or tuition credits. This means more tax will be withheld from each paycheque, though you would receive the difference as a refund when you file your annual tax return.
What is the basic personal amount for 2026?
The 2026 federal basic personal amount is $16,452 for individuals with net income of $181,440 or less. For higher-income individuals, the amount is gradually reduced to $14,829. The BC basic personal amount for 2026 is $13,216.
Can I claim the disability tax credit on my TD1?
Yes, if you have an approved Form T2201 (Disability Tax Credit Certificate) on file with the CRA. The 2026 federal disability amount is $10,341. You enter this on Line 9 of the federal TD1. A corresponding provincial disability amount can be claimed on the TD1BC.
What is the difference between TD1 and TD1BC?
The TD1 is the federal Personal Tax Credits Return — it determines how much federal tax is withheld from your pay. The TD1BC is the British Columbia provincial version — it determines how much BC provincial tax is withheld. Both must be completed by BC employees. The amounts and credits differ between the two forms. Similar provincial forms exist for every province (TD1ON for Ontario, TD1AB for Alberta, etc.).
How do I request reduced tax deductions at source?
If you have deductions not listed on the TD1 (such as RRSP contributions, childcare expenses, or support payments), you can request a letter of authority from the CRA by filing Form T1213 (Request to Reduce Tax Deductions at Source). Once approved, give the letter to your employer and they will reduce your tax withholdings accordingly. Note: you do not need a letter of authority if your employer deducts RRSP contributions directly from your pay.
Seb ProstCPA, Ex-CRA
Licensed CPA with 10+ years of experience, including work with the Canada Revenue Agency. Founder of LedgerLogic, a cloud accounting firm serving Canadian SMEs. Xero Certified Advisor.
