How to fill out a TD1 (2026): federal and provincial, for employers

Tax forms › TD1 · Last reviewed October 25, 2026 · General information, not tax advice

TD1 at a glance

What it does	Sets the employee's total claim amount, which reduces the income tax you deduct from pay
Who completes it	The employee: a federal TD1 and their province's TD1 (TD1 for the province of employment)
When	At hire, and when their credits change
Sent to the CRA?	No; you keep it
2026 federal basic personal amount	$16,452 (reduced for net income over $181,440)

What TD1 is

The TD1 is the Canadian counterpart of the US W-4. The employee lists the personal tax credits they expect to claim, such as the basic personal amount, age, pension, disability and dependant amounts, and the form gives a total claim amount. You use that total in the CRA's payroll formulas or tables to work out income tax.

There are two forms: the federal TD1 and a provincial or territorial TD1 (for example TD1ON for Ontario). Quebec employees complete the federal TD1 and Revenu Québec's TP-1015.3-V instead of a provincial TD1.

Who has to file

Every new employee, and any employee whose claim amounts change.
An employee who does not give you a TD1 is given the basic personal amount only.
Employees with more than one employer at once should not claim the personal amounts again with the second employer.

Due dates

What	Due
New employee	When they start, before the first pay
Change in credits	Within 7 days of the change
Each year	Only if the employee's claim changes; you apply the indexed basic amounts automatically

Penalties for filing late or wrong

There is no filing deadline and no CRA filing for the TD1.
An employee who knowingly makes a false statement can be penalized; you are responsible for deducting the right tax from the claim you were given.

Federal TD1 line by line

Line	What the employee enters	What you do with it
Top	Name, date of birth, SIN, address, country of permanent residence	Check against the employee record
1	Basic personal amount: $16,452 for 2026, less if net income will exceed $181,440 (down to $14,829 at $258,482)	Most employees claim the full amount
2	Canada caregiver amount for infirm children under 18	Included in the total
3	Age amount, if 65 or older	Reduced for higher income
4	Pension income amount	Usually retirees
5	Tuition (full-time and part-time)	Students
6	Disability amount	With an approved Form T2201
7 to 12	Spouse or common-law partner amount, eligible dependant, caregiver amounts, amounts transferred from a spouse or dependant	Included in the total
13	Total claim amount: add lines 1 to 12	Enter it in payroll as the federal claim amount
Page 2	Additional tax to be deducted, deductions for living in a prescribed zone, and other questions (more than one employer, income under the total claim, non-resident)	Apply any extra tax per pay; set zero tax only if the employee certifies income will be under the total claim

The provincial TD1 follows the same pattern with that province's amounts and gives a separate provincial total claim amount.

Common mistakes

Using only the federal TD1 and forgetting the provincial one, or using the wrong province's form.
Applying last year's form figures instead of the current year's indexed amounts.
Claiming the full personal amounts at a second, concurrent job.
Ignoring the additional tax request on page 2.

How to file TD1

Hand out both forms. Give the new employee the current federal TD1 and the TD1 for their province of employment (or TP-1015.3-V in Quebec).
Check the totals. Make sure each form is signed and has a total claim amount.
Enter the claims in payroll. Enter the federal and provincial total claim amounts, and any additional tax per pay.
Keep them on file. Keep the forms with the employee's payroll records; do not send them to the CRA.

How AcboBooks fills it in

In the Canadian edition of AcboBooks 0.2.1, the employee record has fields for the federal TD1 total claim and the provincial TD1 total claim, and a "TD1 forms on file" checkbox. Leave the claim fields blank to use the basic personal amounts.

Run Payroll uses those claim amounts, the employee's province and year-to-date figures with the CRA T4127 formulas (123rd edition, July 2026 tables) to work out federal and provincial tax, and you can override any figure on the paycheque.

What it leaves to you

AcboBooks does not produce the TD1 form. Check the first paycheque against the CRA Payroll Deductions Online Calculator.

Described as of AcboBooks 0.2.1. See Canadian payroll in AcboBooks

Questions

What is the 2026 federal basic personal amount on the TD1?

$16,452. It is reduced for net income above $181,440, down to $14,829 for net income of $258,482 or more.

Does every employee need to fill out a new TD1 each year?

No. Only new employees and those whose credits change. Employees who claimed only the basic personal amount do not need a new form; you use the new year's amount.

What if an employee does not give me a TD1?

Deduct tax as if they claimed only the basic personal amount, federally and for their province.

Do Quebec employees fill out a TD1?

They fill out the federal TD1 for federal tax, and Revenu Québec's Form TP-1015.3-V for Quebec income tax instead of a provincial TD1.

Sources

Checked against these sources on October 25, 2026. Dates assume a calendar year and apply the next-business-day rule for weekends and holidays.

General information, not tax or legal advice. Forms, thresholds and dates change; confirm with the CRA and Service Canada or a tax professional before you file.