The IEC Working Holiday is a 24-month open work permit, the easiest Aussie WHV after New Zealand. This page covers Canadian tax, SIN setup, the ski-resort and city jobs that hire IEC holders, and the mistakes that cost the typical Aussie thousands of dollars in their first year.
This is general information only, not migration, financial or tax advice. Check the live source pages before relying on figures here.
Canadian income-tax bands (2025, federal)
Canadian tax has two layers: federal plus provincial. Both apply at the same time. The federal bands for 2025:
| Band | Income (CAD) | Federal rate |
|---|---|---|
| Band 1 | 0 to 57,375 | 15% |
| Band 2 | 57,376 to 114,750 | 20.5% |
| Band 3 | 114,751 to 177,882 | 26% |
| Band 4 | 177,883 to 253,414 | 29% |
| Band 5 | 253,415+ | 33% |
Everyone gets the federal basic personal amount, currently about CAD 16,129 in 2025. Tax is calculated on income above that.
Source: CRA Canadian income tax rates for individuals.
Provincial top-ups (2025, sample provinces)
Add provincial tax to federal tax. Rates and bands vary by province; below are the three provinces where IEC holders most commonly work.
British Columbia (Whistler, Vancouver):
| Band | Income (CAD) | BC rate |
|---|---|---|
| 1 | 0 to 49,279 | 5.06% |
| 2 | 49,280 to 98,560 | 7.7% |
| 3 | 98,561 to 113,158 | 10.5% |
| 4 | 113,159 to 137,407 | 12.29% |
| 5 | 137,408 to 186,306 | 14.7% |
| 6 | 186,307+ | 16.8% |
Alberta (Banff, Calgary, Lake Louise):
| Band | Income (CAD) | Alberta rate |
|---|---|---|
| 1 | 0 to 151,234 | 10% |
| 2 | 151,235+ | 12% and tapered higher |
Ontario (Toronto, Blue Mountain):
| Band | Income (CAD) | Ontario rate |
|---|---|---|
| 1 | 0 to 52,886 | 5.05% |
| 2 | 52,887 to 105,775 | 9.15% |
| 3 | 105,776 to 150,000 | 11.16% |
| 4 | 150,001 to 220,000 | 12.16% |
| 5 | 220,001+ | 13.16% |
A typical Whistler ski-resort worker earning CAD 40,000 in BC pays roughly:
- Federal tax (after basic personal amount): about CAD 3,580
- BC tax (after BC basic personal amount of CAD 12,580): about CAD 1,400
- CPP contributions: about CAD 2,560
- EI contributions: about CAD 660
Net take-home is around CAD 31,800 (about AUD 35,000 at CAD 1 = AUD 1.10).
Source: CRA provincial and territorial tax rates.
Minimum wage
Most workers are covered by provincial or territorial minimum wages, which differ by province and are usually reviewed each year (commonly on 1 April or 1 October). Federally regulated industries such as banking and air transport use the federal minimum wage. Check the current rate for your province before you accept a job.
Source: Government of Canada minimum wage information.
SIN application timeline
The Social Insurance Number (SIN) is mandatory before you can be paid.
- Day 1 (arrival): Service Canada operates SIN counters at Vancouver (YVR) and Toronto (YYZ) airports during business hours. If you arrive on a weekday and a counter is open, you can get a SIN before leaving the airport.
- Otherwise, Week 1: Visit any Service Canada Centre with your work permit, passport, and a Canadian address (the hostel works). The card is usually issued same day.
- Day of SIN issue: Give the number to your employer immediately. The employer registers you with the CRA and starts withholding federal and provincial tax, CPP and EI.
- First payday: Confirm your TD1 forms (federal and provincial) are completed. These tell payroll how much basic personal amount to apply. Without TD1s, payroll defaults to highest withholding.
Source: Service Canada Social Insurance Number.
Common Aussie IEC mistakes
- Not setting up direct deposit before the first payday. Many Canadian employers pay by cheque if you do not provide direct deposit details. The cheque can take a week to clear if you are using a foreign or just-opened account. Open a Tangerine, Scotiabank or TD bank account in your first 48 hours.
- Skipping the tax return after a short stay. Even if you only worked four months, file a T1 General return. Employers withhold tax as if you earned the same pay all year, so a part-year worker often gets a refund. Returns are generally due by 30 April.
- Driving on an Australian licence past your province's deadline. Each province sets how long you can drive on a foreign licence after you settle there and how to exchange it. Check your province's rules; after the deadline you may be driving unlicensed and uninsured.
- Renting in Vancouver downtown on a hospitality wage. Vancouver and resort-town rents are high compared with hospitality wages; most IEC holders share housing.
- Trusting "average tip" claims at recruitment. Tip income varies and slow weeks happen. Build a budget around your base wage and treat tips as savings.
- Forgetting GST/HST is added at the till. Sales tax is added on top of the displayed price in most provinces. In BC it is 12 per cent (5 GST + 7 PST), in Ontario it is 13 per cent (HST), in Alberta it is just 5 per cent GST. A CAD 30 menu meal is CAD 33.60 in BC plus tip.
- Letting your health insurance lapse. IEC participants must hold health insurance for their whole stay, and a port-of-entry officer can issue a work permit only for the period your insurance covers. Provincial health plan eligibility and any waiting periods differ by province, so check yours.
- Booking the return flight too early. The IEC permit is valid for 24 months. Many holders book a return flight at 18 months "for safety" and miss the back end of the visa. The permit extends only via a separate Young Professionals or Co-op category; the Working Holiday category is one-shot.
What to do, in order, on arrival
- Land at YVR, YYZ or YUL with your work-permit Letter of Introduction. The CBSA officer prints the actual work permit on arrival; check the dates and conditions before you leave the counter.
- Get a SIN at the airport or first Service Canada office.
- Open a bank account (most banks accept work permits as primary ID).
- Sign up for a phone plan (Public Mobile, Lucky Mobile, Freedom Mobile are the cheapest carriers; Telus, Rogers and Bell are the premium ones).
- Register for provincial health insurance.
- Convert your driver's licence within the provincial deadline if you plan to drive.
- Start the job search.
Settling tax when you leave
If you leave Canada part-way through the calendar year, you still file a T1 General by 30 April of the following year. You can file from Australia using NETFILE-certified software (Wealthsimple Tax, TurboTax) or by mail. CRA processes most online returns in 2 to 4 weeks.
If you became Canadian tax resident for the year, declare worldwide income for the period of residency. The Australia-Canada double-tax treaty stops you being taxed twice on the same income.
If you depart permanently, also file Form NR73 (Determination of Residency Status) if you want CRA's view on whether you ceased to be Canadian-resident. This affects the taxation of any Canadian-source income paid after departure.
Source: CRA leaving or entering Canada.
What this means for your Australian tax
Most IEC holders remain Australian tax residents. Declare your Canadian wages on your Australian return and claim a foreign income tax offset for the Canadian federal + provincial tax and CPP/EI paid. Keep your Canadian T4 slips and the final Notice of Assessment from CRA with your Australian records.
If you became a non-resident for Australian tax purposes during the IEC stay, see a registered Australian tax agent before lodging. The HECS-HELP overseas levy still applies if your worldwide income exceeds the threshold.
Related
- Canada country page
- Working holiday visa tax basics
- Currency converter and FX fees (AUD to CAD)
- Travel insurance for under-25s
- HECS-HELP repayment calculator
ExamExplained does not provide financial, tax or migration advice. Canadian tax bands and SIN application rules are taken from canada.ca at the date above; check the source before relying on figures. For your circumstances, see a registered Australian tax agent, a Canadian Chartered Professional Accountant (CPA), and an Immigration Consultants of Canada Regulatory Council (ICCRC) registered consultant for visa questions.