TD1 Form

Definition

The TD1 tells an employer or payer which personal tax credits to use when calculating income-tax deductions. It changes withholding, not the final tax entitlement determined on the employee's personal return. Use the form for the appropriate year. CRA instructions for obtaining TD1 forms

When forms are needed

Get the federal TD1 when an employee starts work and within seven days of a change reasonably expected to affect personal tax credits for the year. A new form is also used to change previous claims, claim the prescribed-zone deduction or request additional income tax withholding. A provincial or territorial TD1 is required when more than its basic personal amount is claimed. Quebec uses its own provincial form.

Employees do not automatically need a fresh TD1 every January. CRA tells employers how to update indexed amounts in payroll. Keep the completed forms and provide them to CRA if requested; ordinarily they are not sent in with each payroll return. If a required form is missing, apply CRA's basic-personal-amount instructions rather than accepting unsupported additional claims.

Multiple jobs and other adjustments

When an employee has more than one employer or payer at the same time and already claims personal amounts elsewhere, the second TD1 generally uses the multiple-employer box and a zero total claim. This removes duplicate credits; it does not mean all pay is taxed at a flat lowest-bracket rate. The normal progressive payroll calculation still applies. Sequential jobs do not automatically require a zero claim merely because both occur in the same year. CRA starting-work explanation

TD1 worksheets can calculate partial amounts, including income-tested personal or caregiver credits. TD1X addresses commission remuneration and expenses. TD1-IN concerns possible Indian Act employment-income exemptions; it is not a blanket exemption for every Indigenous employee. Follow the form's conditions.

Example

A new BC employee starts in July 2026. The employee reviews the current federal and BC forms and claims the basic amounts plus any supported spouse or caregiver amounts, taking each dependant's expected annual net income into account. The employer enters the totals in payroll and retains the signed forms.

If the employee later starts a concurrent second job and has already claimed the personal amounts at the first job, they complete the second employer's TD1 using the multiple-employer instructions. If expected annual credits change, the employee supplies the revised form within seven days. A dependant's death does not automatically erase all annual credit eligibility; reassess the particular credit's rules rather than mechanically deleting it.

Common mistakes

• Treating TD1 as a tax-saving election rather than a withholding instruction.
• Claiming the same personal amounts at concurrent employers.
• Requiring every employee to submit a new form annually without a relevant change.
• Using an old form for a new employee or ignoring a required revision.
• Throwing away signed forms when the employee leaves instead of retaining the payroll records for the applicable period.

Related concepts

• Income Tax Withholding
• CPP Contributions
• EI Premiums
• Six-Year Retention Rule
• Payroll Account (RP)