The tax refund system in Canada, including Calgary, is a complex mechanism that ensures fair refunds of overpaid taxes to citizens and residents. Understanding how this system works will help you plan your finances effectively, avoid delays, and make the most of all available opportunities to get your money back quickly.
Basics of the tax refund system
What is a tax refund?
A tax refund is a refund of overpaid taxes that were withheld from your wages during the year or paid in the form of advance payments. It is important to understand that receiving a large refund is not always a positive thing — it means that the government has been using your money for free during the year, depriving you of opportunities to invest or use those funds.
How tax refunds are calculated
Employers withhold taxes from your salary before the money reaches your bank account. When you file your tax return by April 30 of the following year, you provide a detailed description of your income, deductions, and credits to determine the actual amount of tax you owe. If you paid more than you owe, the government will refund the excess. If you underpaid, you must pay the difference by April 30.
Tax return processing times in 2025
Standard processing times
The Canada Revenue Agency (CRA) has clear targets for processing tax returns:
- Electronic filing: The CRA aims to send Notice of Assessment and any refunds within two weeks of receiving an electronically filed return.
- Paper filing: For paper returns, the processing time is up to eight weeks.
- Non-resident returns: Processing can take up to 16 weeks.
These deadlines apply to returns received on or before the filing deadline.
Actual refund receipt times
Based on Reddit user experience in 2025, actual times are often even shorter than those officially stated:
- Filed on March 7 → Received on March 11: only 4 days
- Filed on March 17 → Received on March 27: 10 days
- Filed on March 2 → Received on March 17: 15 days
- Filed on February 24 → Received on March 5: 9 days
Most users report receiving their refund within 8-14 days after filing electronically with direct deposit.
Direct deposit: the fastest way to get your refund
Benefits of direct deposit
Direct deposit is the fastest and safest way to get your tax refund. With direct deposit, your refund can be credited to your account as early as 8 days after you file online.
How to set up direct deposit
- Through CRA My Account: log in to your CRA My Account and under “Related services”, click “Arrange my direct deposit”.
- Through the MyCRA mobile app: use the same process as in the online version.
- Through financial institutions: Some banks allow you to set up direct deposit with the CRA directly through their systems:
- TD Canada Trust: By phone or in person at a branch.
- Desjardins: Online for members.
- Other major banks may also offer this service.
- By phone: call 1-800-959-8281. You will need your SIN, full name, current address, information from your most recent tax return, and bank details.
Required banking information
To set up direct deposit, you will need to provide:
- Three-digit financial institution number
- Five-digit transit number
- Your account number
Notice of Assessment
What the Notice of Assessment contains
A Notice of Assessment (NOA) is like a receipt for filing your tax return. It contains detailed information about the results of your return:
- Account summary: shows whether you are owed a refund, have a zero balance, or owe additional taxes.
- Tax assessment summary: the main lines from your return, including income, deductions, and credits.
- Explanation of changes: details of any adjustments the CRA made to your return.
- RRSP deduction limit: your available RRSP contribution for the next year.
When you will receive your NOA
The method you use to file your return affects when you will receive your NOA:
- Within 2 weeks for electronically filed returns
- Within 8 weeks for paper returns
Your NOA is available immediately in your tax software after you file, and in CRA My Account after it has been processed.
Reasons for tax refund delays
Most common reasons for delays
- Missing or incorrect information — even a small mistake, such as an incorrect SIN number, can delay your refund by weeks.
- Mathematical errors — an additional 2-4 weeks of processing.
- Missing forms or documents — 4-8 week delay.
- Incorrect direct deposit information — delays of weeks or months are possible.
Complex tax situations
- Self-employed individuals and those with multiple sources of income often wait longer.
- Random detailed audits can take several months.
Debt Offset
How debt offset works
Since October 2022, the CRA has been actively using tax refunds and benefit payments to offset tax and other government debts.
Types of debts that can be offset
- Tax debts from previous years
- GST/HST debts
- EI overpayments
- Canada Student Loans
- Social assistance overpayments
- Child support debts
- OAS and CPP overpayments
How to find out about debt repayment
The CRA will send you a notice by mail or through My Account about any changes and write-offs.
Checking the status of your refund
Online methods
- CRA My Account — the fastest way.
- MyCRA mobile app — similar functionality.
Phone lines
- Automated: 1-800-959-1956 (24/7)
- Agents: 1-800-959-8281 (Mon–Fri, 8:00 a.m.–8:00 p.m. ET)
Wait times
- In Canada: 8 weeks before contacting
- Outside Canada: 16 weeks
Interest on delayed refunds
When does the CRA pay interest
Interest is calculated from the later of the following dates:
- 30 days after the balance payment date
- 30th day after the return was filed
- Day of overpayment
Current interest rates
- Individuals: 8% per year
- Corporations: 6% per year
Practical tips to speed up the process
Filing your return
- File electronically as early as possible (NETFILE starting February 24, 2025)
- Check your SIN, bank details, and amounts on your T-slips
- Use certified software
System setup
- Activate direct deposit in advance
- Register for CRA My Account
- Enable email notifications
Organize your documents
- Collect all T-slips and receipts in advance
- Keep your documents for 6 years after filing
Special situations
Complex returns
- Self-employed: file by June 16, 2025, pay by April 30
- Returns with investments or significant deductions may be audited
Financial difficulties
- Contact the CRA even if you have a payment plan
Debt phone numbers:
- Benefits: 1-888-863-8662
- Taxes: 1-888-863-8657
Moving or changing banks
- Update your address and bank information immediately
What to do if you have problems
If your refund does not arrive
- Check your messages in CRA My Account
- Make sure your bank information is correct
- Check your NOA to see if your refund has been used to pay off debt
If you disagree with your assessment
- 90 days to file an objection (online or by mail)
Support services
- CVITP — free help for simple cases
- For complex cases — a professional tax advisor
Future trends and improvements
Digitization of processes
- Auto-fill my Return (AFR) for My Account users
Improved communication
- Reduced wait times on the phone
- Expansion of online chat
Conclusion
The tax refund system in Calgary operates within the Canada-wide CRA system. The key to getting your refund quickly is e-filing, direct deposit, and accurate documentation. Understanding the processes and reasons for delays will help you avoid financial surprises.
A large refund is not always a good thing — it means you have effectively lent money to the government for free. You may want to adjust your payroll deductions so that your money works for you throughout the year.