CRA forms
Form TD1 Explained: Personal Tax Credits for Payroll
$16,452the 2026 federal basic personal amount, the starting point on every employee's Form TD1.
Sources checked October 20263 min read
Key points
- Filled out by an employee when they start, and again when their situation changes
- Without one, the employer withholds as if only the basic personal amount is claimed
- Someone with two jobs usually claims their credits with one employer only
- A provincial or territorial TD1 goes with the federal one
What the form does
Form TD1, Personal Tax Credits Return, tells an employer or payer which non refundable tax credits an employee expects to claim, so the right amount of income tax comes off each pay. The employee fills it out, signs it and gives it to the employer; it is not sent to the CRA, but the employer keeps it with the payroll records.
An employee fills one out when they start with a new employer or payer, when they want to change what they claimed, for example after a change in dependants, when they want to claim the northern residents deduction, or when they want more tax taken off. Without a TD1, the employer withholds as if the employee claims only the basic personal amount.
The main lines
The 2026 federal form has thirteen lines, and most employees fill in only the first and the last.
| Line | What it claims |
|---|---|
| 1 | The basic personal amount, $16,452 for 2026, which every resident can claim |
| 2 | The Canada caregiver amount for infirm children under 18 |
| 3 | The age amount, for those 65 or older at the end of the year |
| 4 | The pension income amount |
| 5 | Tuition for full time and part time students |
| 6 | The disability amount |
| 7 and 8 | The spouse or common law partner amount, or the amount for an eligible dependant |
| 9 and 10 | Canada caregiver amounts for infirm dependants 18 or older |
| 11 and 12 | Amounts transferred from a spouse or a dependant |
| 13 | The total claim amount |
Second jobs, low income and higher earners
Someone working for two employers at once who has already claimed their credits on one TD1 enters zero on the other, so the credits are not counted twice. Otherwise both employers withhold too little and the employee owes tax at filing time. Someone whose total income for the year will be less than their total claim can tick a box so that no tax is withheld.
The basic personal amount shrinks for high incomes, falling from $16,452 to $14,829 as net income rises from $181,440 to $258,482. An employee who expects income in that range and claims the full amount may owe tax when they file.
The provincial form
Each province and territory has its own TD1 for its own credits. An employee fills that out as well when their federal claim is more than $16,452, and the employer uses both forms together. In Quebec, provincial withholding runs on Revenu Québec's own source deductions return instead.
Quick answers
Does a TD1 get sent to the CRA?
No. The employee gives it to the employer, who keeps it with the payroll records.
I have two jobs. Do I claim the basic personal amount at both?
No. Claim your credits with one employer and enter zero on the TD1 for the other, or you will likely owe tax when you file.
What happens if an employee never fills out a TD1?
The employer withholds as if the employee claims only the basic personal amount.
Related pages
Official sources
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Important. This article provides general educational information, not legal or tax advice for a specific business. Rules, administrative policies, rates and deadlines can change. Confirm your facts and current obligations with the responsible government agency and a qualified adviser.