TD1 forms explained: what employees fill in and why
What the federal and provincial TD1 forms do, the 2026 claim amounts, when an employee needs a new one, and what employers do with them.
7 min read · November 11, 2026
What a TD1 does
The TD1, Personal Tax Credits Return, tells you which non-refundable tax credits an employee expects to claim for the year. Payroll uses the total to decide how much of each paycheque is effectively tax-free, so the income tax you deduct is close to what the employee will owe. The employee fills it in and signs it; you don't fill it in for them.
There are two forms: the federal TD1 and a provincial or territorial TD1 (TD1ON, TD1BC, TD1AB and so on). Quebec employees fill in the federal TD1 and Revenu Québec's own form, TP-1015.3, for Quebec tax.
The federal TD1, line by line
These are the 2026 amounts from the CRA's 2026 form:
| Line | Claim | 2026 amount |
|---|---|---|
| 1 | Basic personal amount | $16,452 (a partial claim if net income will be over $181,440) |
| 2 | Canada caregiver amount for infirm children under 18 | $2,740 per child |
| 3 | Age amount (65 or older) | $9,208 if net income is $46,432 or less; partial up to $107,819 |
| 4 | Pension income amount | Up to $2,000 |
| 5 | Tuition | Fees paid, if over $100 per institution |
| 6 | Disability amount (approved T2201) | $10,341 |
| 7, 8 | Spouse or common-law partner; eligible dependant | Line 1 minus their net income |
| 9, 10 | Canada caregiver amounts | Worked out on the TD1-WS worksheet; line 10 up to $8,773 |
| 11, 12 | Amounts transferred from a spouse or dependant | Unused amounts |
| 13 | Total claim amount | Lines 1 to 12 |
Most employees claim only line 1, so their total is the basic personal amount. The 2027 TD1 forms had not been published when we checked on November 11, 2026; the CRA posts the new forms ahead of January pay.
The provincial TD1
The federal form says an employee must also fill in the provincial or territorial TD1 if their line 13 is more than the basic personal amount ($16,452 for 2026). If they claim only the basic amount, you use the province's basic personal amount, which is different in each province: Ontario's is $12,989 for 2026. Employees use the form for their province of employment; pensioners use their province of residence.
Saskatchewan residents supporting children under 18 may want to fill in TD1SK even with a basic-only federal claim, because of its child amount.
When to ask for a new one
- When someone starts work, for both forms.
- Within 7 days of a change that will change their credits for the year: marriage or separation, a new dependant, turning 65, starting school, a disability approval.
- When they want more tax taken off, for example because they have other income.
- When they have a second job and have already claimed their credits with the other employer.
A new form isn't needed every January if nothing changed. The basic personal amount is indexed each year, and payroll uses the new year's amount for anyone claiming only the basic.
The boxes people miss
- More than one employer or payer at the same time. If the credits were already claimed with another employer, the employee ticks this box and enters 0 on line 13, so full tax comes off your cheques.
- Total income is less than the total claim amount. A student earning less than the credits can tick this, and no income tax is deducted.
- Non-residents enter 0 unless 90% or more of their world income is taxed in Canada.
- Additional tax to be deducted each pay, an amount the employee chooses.
- Prescribed zone deduction for northern residents ($11 or $22 a day for 2026).
- Reducing tax at source for RRSP contributions, child care or donations needs a letter of authority from the CRA (Form T1213), not a TD1. RRSP contributions you deduct from pay don't need one.
What the employer does with it
Keep the signed forms with the employee's payroll records. Don't send them to the CRA. If an employee doesn't give you a TD1, deduct tax as though they claimed only the basic personal amount. You can give employees the CRA's fillable PDF or the web link, and the CRA allows electronic versions that follow its instructions.
Make sure the amounts look plausible. A large claim from someone you know is single with no dependants is worth a polite question, because an over-claim leaves them with a tax bill in April.
TD1 claims in AcboBooks
Each Canadian employee in AcboBooks has a Federal TD1 total claim and a Provincial TD1 total claim. Type line 13 from each form, or leave the field blank to use that year's basic personal amount. Leaving it blank for basic-only employees is better than typing $16,452, because the blank follows the new amount automatically when the tables change for 2027. A TD1 forms on file checkbox on the employee record shows whose forms you have.
AcboBooks doesn't yet have a separate field for an employee's "additional tax" request. You can type over the calculated income tax on the paycheque instead. For a zero claim (line 13 = 0), enter 0 rather than leaving it blank.
Frequently asked questions
Does an employee have to fill in a TD1 every year?
No. Only when they start, when their credits change, or when they want more tax deducted. If they claim only the basic personal amount, the new year's amount is used without a new form.
What if an employee doesn't give me a TD1?
Deduct tax as if they claimed only the basic personal amount. They can give you a form later and you adjust from the next pay.
Do I send TD1 forms to the CRA?
No. Keep them with the employee's payroll records.
What is the 2026 basic personal amount?
$16,452 federally on the 2026 TD1, for net income of $181,440 or less. Provincial amounts differ; Ontario's 2026 amount is $12,989.
Income tax from the TD1 claim, every pay
Enter each employee's federal and provincial TD1 totals in AcboBooks, or leave them blank for the basic personal amount, and the tax on each cheque follows.
This article is general information, not tax, legal or accounting advice. Rules and dates change; check the official source or ask your accountant before acting.
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