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• How to open a bank account in Canada
• What is the tax system in Canada?

How to open a bank account in Canada

Wondering how to open a bank account in Canada as an expat? The good news is — yes, it’s entirely possible, even if you’re not a Canadian citizen. Some banks may require you to visit a branch in person, while others let you open your account online, even before arriving in Canada. You’ll find more details on both options below.

Required documents to open a bank account

The documents you’ll need to open a bank account are fairly simple:

• passport
• a second form of ID (like driver’s license or credit card)
• immigration papers
• Social Insurance Number (SIN) — if you have one

Different banks may require different documents, so it’s best to check with your chosen branch for full information.

Opening a bank account online

Some banks in Canada allow you to open an account online — even before you arrive. While online banking is sometimes seen as less secure, it’s actually very safe. The Canada Deposit Insurance Corporation (CDIC) insures eligible online deposits up to 100,000 CAD (around 75,000 USD). Note that investment products like stocks, bonds, and mutual funds aren’t covered.

Opening a Canadian bank account online is a quick and simple process. Most banks provide clear instructions on their websites. You’ll typically need:

• passport
• immigration papers
• temporary residence permit, work, or study permit (if applicable)

It’s a good idea to contact the bank beforehand if you have any questions or need help with the process. You can usually reach them by e-mail, phone, or even chat online depending on your bank of choice. They’ will inform you of any additional documents that may be required. Please note that you may also have to visit the branch in person once you arrive in Canada.

Top banks in Canada

The six major banks in Canada that dominate the market are:

• Royal Bank of Canada (RBC)
• TD Canada Trust (TD Bank)
• Scotiabank
• Bank of Montreal (BMO)
• Canadian Imperial Bank of Commerce (CIBC)
• National Bank of Canada

Top international banks in Canada

Canada hosts international banks from countries and territories like the US, Japan, Singapore, Germany, China, France, Taiwan, India, Switzerland, and more. Some well-known international banks operating in Canada are:

• HSBC Bank Canada
• Bank of America
• Wells Fargo
• Bank of China
• BNP Paribas
• UBS

Best online banks in Canada

Online banks in Canada are popular for their convenience and lower fees. Most tasks — like transferring money or checking your balance — can be done quickly from your phone or computer. Many online banks also offer lower monthly fees and better interest rates than traditional banks. (You’ll find more on this below under Bank fees and minimum deposit.)

Types of online accounts include regular checking and savings, high-interest savings, Tax-Free Savings Accounts (TFSAs), hybrid accounts, and options for youth and seniors.

Some of the top online banks in Canada are:

• Tangerine
• Simplii Financial
• EQ Bank
• [Motive Financial]
• Alterna Bank

Bank fees and minimum deposit

Bank fees in Canada typically range from around 4 CAD (approx. 3 USD) to 30 CAD (approx. 23 USD) per month. Most banks don’t require a minimum deposit to open an account, but if you want to avoid monthly fees, you’ll usually need to maintain a minimum balance — generally between 3,000 and 4,000 CAD (about 2,260–3,010 USD), depending on the bank.

There’s also a federal program that ensures access to low-cost accounts, which cost no more than 4 CAD per month and are offered by most major banks. Some groups — like youth, full-time students, seniors receiving the Guaranteed Income Supplement (GIS), and RDSP beneficiaries — may qualify for no-fee accounts.

Starting in December 2025, newcomers in their first year in Canada are also expected to be included in this no-fee category at participating banks. This means many expats moving to Canada should be able to open a low-cost account, and in some cases a no-fee one, depending on the bank’s policy.

Common banking fees in Canada include:

• monthly account maintenance fees
• ATM fees (especially at out-of-network machines)
• transfer and foreign transaction fees
• fees for exceeding the monthly debit transaction limit (usually about 1 CAD per extra transaction)
• NSF (Non-Sufficient Funds) and overdraft fees
• check book, paper statement, and stop payment fees
• check certification charges

Each bank has its own pricing and conditions, so it’s worth comparing options before opening your account — especially if you plan to maintain a lower balance or expect frequent transactions.

No-fee bank accounts

No-fee bank accounts aren’t the norm in Canada, but they do exist — mostly through online-only banks.

Institutions like Tangerine, Simplii Financial, EQ Bank, and others typically offer no monthly fees and unlimited free transactions. ATM withdrawals, however, may come with a charge if you use a machine outside your bank’s network. For example, Tangerine customers can use Scotiabank ATMs for free, since they’re part of the same group. But for other banks, using an out-of-network ATM could cost around 2 CAD (about 1.50 USD) per withdrawal.

When picking an online bank, check:

• ATM access in your area
• fees for overdrafts or insufficient funds (which often still apply)
• limits on certain types of transactions (e.g., sending Interac e-Transfers)

Online accounts can be a good option if you don’t need in-person service and want to avoid monthly fees, but it’s worth checking the details.

What is the tax System in Canada?

Sales tax

In Canada, most provinces charge a sales tax on goods and services, but the structure depends on where you live. Some provinces use the Harmonized Sales Tax (HST) — a combined tax that includes:

• 5% federal GST (Goods and Services Tax)
• a provincial portion (ranging from 8% to 10%)

For example, in Ontario, the HST is 13% (5% federal + 8% provincial). In provinces like Alberta, only the 5% GST applies, while in others, GST and PST (Provincial Sales Tax) are charged separately.

Also, unlike in many European countries, Canadian sales tax is not included in the price tag. It’s added at checkout — so the price you see in stores is before tax.

Other types of tax in Canada

Canada’s tax system includes various types of taxes beyond sales tax. These include:

• income tax — paid on personal and business earnings.
• property tax — paid on real estate, collected by municipal governments (see Housing section for details).
• business taxes — for companies operating in Canada.

Taxes are collected by the Canada Revenue Agency (CRA) to fund public services like roads, schools, healthcare, and more.

People who are considered Canadian tax residents (this status is different from immigration residency) must file an annual tax return, reporting their income, deductions, and credits. After processing, the CRA either issues a refund or requests any tax owed.

If you owe money, payment is due by 30 April (or the next business day if it falls on a weekend/holiday). Late filing or payment results in penalties and interest charges.

What is the income tax rate in Canada?

Canada has a progressive income tax system, which means the more you earn, the higher the rate you pay on the income within each bracket. The tax brackets in Canada for 2025 are:

*Exchange rate is approximate and for reference only.

Keep in mind that provinces and territories each have their own rates as well for tax on salaries. For more information, you’ll need to look at the government website of your specific territory and/or province.

Income not taxed in Canada

Some forms of income aren’t taxed in Canada. These include:

• gifts and inheritances
• death benefits from a life insurance policy
• lottery winnings
• winnings from betting or gambling
• strike pay
• income earned inside from a TFSA (Tax-Free Savings Account)
• compensation paid by a province or territory to a victim of a criminal act or * * motor vehicle accident
• certain civil and military service pensions
• income from certain international organizations (e.g., United Nations)
• war disability pensions
• RCMP pensions
• income of First Nations if on a reserve
• capital gain on sale of taxpayer’s principal residence
• provincial child tax credits or benefits and Québec family allowances
• working income tax benefit
• GST, HST, QST, or SST credit
• Canada Child Tax Benefit (CCB)

Self-employed taxes Canada

The Canada Revenue Agency (CRA) has clear rules to determine whether you’re considered self-employed. This usually applies if you operate your own business or work as an independent contractor — even part-time.

Examples of self-employed roles:

• chiropractor working from home office
• lawn-care company owner
• childcare provider at an in-home daycare
• uber driver
• real estate agent
• contract writer
• seller on eBay
• pet-sitter/dog-walker

If you’re self-employed, you’ll need to file taxes differently from regular employees — and usually pay both income tax and Canada Pension Plan (CPP) contributions.

What can you deduct?

One of the perks of being self-employed is that many business-related expenses are tax deductible. Common deductions include:

• business operations
• office and home office
• entertainment and travel
• bank fees and charges (including cost of business checks)
• yearly dues for commercial and trade organizations
• parking fees
• private health service plan premiums
• interest on vehicle payments
• office cleaning supplies