Is Money Gifted from Abroad Taxable in Canada?

Key takeaways

CRA lists "most gifts and inheritances" as amounts that are not reported or taxed
Income the gift earns (interest, dividends, rent, gains) is taxable for a Canadian resident
Canada has no gift tax on the person who receives a gift
If you keep gifted money or property outside Canada, Form T1135 can apply when your foreign property costs more than CAD 100,000
The giver’s country may tax or limit the gift; for example, in the United States the donor generally pays any gift tax

Do I pay tax on money my family gives me?

In most cases, no. The CRA's list of "amounts that are not reported or taxed" includes "most gifts and inheritances." You do not put a cash gift from a parent on your tax return. Canada has no separate gift tax for the person who receives a gift.

The same CRA page adds a key rule: "Income earned on any of the above amounts is taxable." So the gift is tax-free when you receive it. What it earns afterwards is not.

The word "most" matters. A payment that looks like a gift but is really pay for work, a business payment, or a prize for achievement can be taxable. If someone "gifts" you money in return for services, it is not a gift for tax purposes.

What happens to the income the gift earns?

Once you are a Canadian tax resident, you report your world income. That includes income from gifted money:

What you do with the gift	Tax result in Canada
Keep it in a Canadian savings account or GIC	The interest is taxable each year
Keep it in a bank account abroad	The interest is taxable in Canada too; a foreign tax credit may reduce double tax
Invest it in a TFSA (with available room)	CRA lists most amounts received from a TFSA as not taxed
Put it in an RRSP or FHSA	Each plan has its own contribution and withdrawal rules
Use it for a down payment	No tax on the gift; later rules depend on the home

Example: your parents give you CAD 30,000. You put it in a savings account and it earns CAD 900 of interest in a year. The CAD 30,000 is not taxed. The CAD 900 goes on your return as interest income. The same money in a TFSA, within your contribution room, would not create taxable interest. See TFSA, RRSP and FHSA for newcomers. The interest figure is an illustration, not a rate offer.

Does it matter whether the gift came before or after I moved?

The gift itself is not taxed either way. What changes is the income. Before you become a Canadian tax resident, Canada generally does not tax your foreign income. After, it does. Your residency date is key. Find it with the tax residency checker.

If you received property, such as shares or land, keep a record of its value. The CRA's capital gains guide tells you to keep a record of the fair market value of property on the date you "receive it as a gift." You need that value when you sell.

Do I have to report a foreign gift to the CRA?

There is no general form for receiving a cash gift from a person. But two reporting rules can apply:

Form T1135. If the total cost of your "specified foreign property" is more than CAD 100,000 at any time in the year, you file Form T1135. A foreign bank account counts. Personal-use property does not. The test uses cost, not market value. You do not file T1135 for the year you first become a resident. Check with the T1135 checker.
Form T1142. If the money comes from a trust outside Canada, not directly from a person, Form T1142 can apply to distributions you receive from a non-resident trust.

Separately, banks report international transfers of CAD 10,000 or more to the CRA. That report is not a tax bill. Keep your gift letter and the giver's statements in case the CRA asks where the money came from. See why banks ask about your money.

What if I give money or property to someone?

Different rules apply when you, as a Canadian resident, are the giver:

The CRA says if you give capital property (for example, shares or land) as a gift, you are considered to have sold it at its fair market value. You may have a capital gain to report.
Gifts of capital property to your spouse or common-law partner generally have no immediate gain, but later gains can be taxed to you.
When you give or lend money or property to a spouse, partner, or a child under 18, special "attribution rules" can make the income taxable to you. For a child, this generally means a related child under 18 (section 74.1 of the Income Tax Act). The CRA's archived bulletin IT-511R explains the spouse rules. Ask a tax professional before large family transfers.

Gifts of Canadian-dollar cash do not create a capital gain. Gifting foreign currency or investments can count as a disposition, so ask a tax professional first.

Gifts from Canada to family abroad

Many newcomers later send money home to parents. Sending your own after-tax Canadian-dollar cash as a gift does not create a capital gain for you. Transfers of CAD 10,000 or more are still reported by your bank. The person receiving the money should check the rules in their own country.

Does the giver pay tax in their own country?

That depends on the giver's country. Canada does not decide it. Two examples from official sources:

United States. The IRS says "the donor is generally responsible for paying the gift tax." For 2026, the annual exclusion is USD 19,000 per person receiving a gift.
India. The Reserve Bank of India allows "gift or donation" under the Liberalised Remittance Scheme, up to USD 250,000 per financial year per resident. A resident can also gift rupees to a close relative who is a non-resident, into their NRO (Non-Resident Ordinary) account. Tax collected at source can apply when money is sent abroad. See TCS after Budget 2026 and NRE vs NRO accounts.

Other countries have their own gift, inheritance or exchange-control rules. The giver should check with their own tax office or bank before sending a large gift.

What records should I keep?

A short signed gift letter: names, relationship, amount, date, and a statement that it is a gift with no repayment.
The giver's bank statement showing the money leaving.
Your statement showing it arriving, and the transfer receipt.
For property: the fair market value on the date of the gift, and how you found it.

The same papers help with your bank and, if you buy a home, your lender. See gift letters and down payments.

Common questions

Is a gift from my parents abroad taxable in Canada?

Usually not. The CRA lists most gifts and inheritances as amounts that are not reported or taxed. Income the gift earns after you receive it is taxable.

Is an inheritance from abroad taxable in Canada?

The CRA lists most inheritances as not taxed for the person who receives them. Income it earns later is taxable. The estate may have tax duties in the other country.

Do I report a gift on my tax return?

A cash gift from a person is not reported as income. But if your foreign property costs more than CAD 100,000 in a year, Form T1135 may apply. Distributions from a foreign trust can need Form T1142.

Will the CRA question a large transfer from family?

Banks report international transfers of CAD 10,000 or more to the CRA. Keep a gift letter and statements so you can show it was a gift if asked.

Does Canada have a gift tax?

Canada has no gift tax for the person who receives a gift. A Canadian resident who gives capital property is treated as selling it at fair market value.

Sources

Checked against these sources on October 10, 2026. Spotted something out of date? Tell us.

Is money gifted from abroad taxable in Canada?