How to Read a CRA Notice of Assessment

You filed your tax return and a few weeks later a document arrives from the CRA — the Notice of Assessment (NOA). Most people glance at whether they're getting a refund or owe money, then file it away. That's a mistake. The NOA contains critical information that affects your RRSP contribution room, your eligibility for government benefits, and whether you should dispute anything the CRA changed in your return.

What Is a Notice of Assessment?

A Notice of Assessment is the CRA's official confirmation that it has processed your tax return. It's not the same as an audit — it's an automated review. The CRA cross-references your return against information slips (T4s, T5s, T3s) they've received from employers and financial institutions, and issues the NOA summarizing the result.

The NOA tells you three things:

• Whether the CRA agrees with what you filed, or has made changes
• How much you owe or are owed (refund, balance due, or nil)
• Key carryover amounts for future tax planning (RRSP room, loss carryforwards)

The Key Sections of a Notice of Assessment

Section 1: Summary of Assessment

This is the main section — the CRA's verdict on your return. It shows your total income, total deductions, taxable income, total tax payable, total credits, and the resulting balance (refund or amount owing). Compare this line by line to your filed return. If numbers differ, the CRA made a change — and you need to understand why.

Section 2: Changes the CRA Made

If the CRA changed anything on your return, they'll list it here with an explanation code. Common changes include:

• Adjusting an amount that didn't match an information slip (e.g., your T4 amount differed from what your employer reported)
• Applying prior year balances or credits
• Correcting a mathematical error
• Denying a deduction that wasn't supported (rare in initial assessment, more common in a review)

Don't ignore this section. If the CRA made an error, you have 90 days from the date of the NOA to file a Notice of Objection.

Section 3: RRSP Deduction Limit

This is one of the most practically important sections. Your RRSP deduction limit for the following year is calculated as 18% of your prior year's earned income, minus any Pension Adjustment (from employer pension plans), up to the annual maximum ($32,490 for 2026). The NOA tells you exactly how much RRSP room you've accumulated.

If you're not maxing out your RRSP every year, check this number — it may be significantly higher than you expect, especially if you had a good income year.

Section 4: TFSA Contribution Room

If the CRA determines you've overcontributed to your TFSA, this section will note it. For 2026, the annual TFSA limit is $7,000. Your total cumulative room depends on all the years you've been eligible — the NOA may note if there's an issue.

Section 5: Refund or Balance Owing

Straightforward: if you're owed a refund, it will be deposited to your bank account (if you're registered for direct deposit) or mailed by cheque. If you owe a balance, the payment due date is on the NOA — usually April 30 for most Canadians.

What to Do If the CRA Made a Change You Disagree With

You have the right to dispute a CRA assessment. There are two paths:

Request for Adjustment (T1-ADJ)

If you simply need to correct information on your return — adding income you forgot, or claiming a credit you missed — use Form T1-ADJ (T1 Adjustment Request). You can also do this through CRA My Account. This is not a dispute; it's a correction you're initiating.

Notice of Objection (T400A)

If you disagree with a change the CRA made to your return, you can file a formal Notice of Objection. You must file within 90 days of the date on the NOA (or one year from the filing deadline, whichever is later). The objection goes to the CRA's Appeals Division — a separate group from the assessors who reviewed your original return.

If your objection is denied, you can appeal to the Tax Court of Canada. For large amounts, working with a tax professional for this step is strongly recommended.

Corporate Notice of Assessment (T2)

Corporations receive a corporate NOA after the CRA processes their T2 return. The structure is similar to a personal NOA, but includes corporate-specific items:

• Federal and provincial tax assessed
• Small Business Deduction applied (if applicable)
• Refundable dividend tax on hand (RDTOH)
• Non-capital loss carryforwards available
• Investment tax credits applied

Corporate NOAs are especially important to review carefully. Errors in SBD eligibility or loss carryforward amounts can have significant financial consequences.

How to Access Your NOA Online

You don't have to wait for a paper document. Through CRA My Account (personal) or My Business Account (corporate), you can access your NOA as soon as it's issued — often within two weeks of filing an electronic return. Setting up direct deposit at the same time ensures any refund arrives without delay.

To access: log in at canada.ca/my-cra-account → Tax Returns → select the tax year → View My Assessment.