Notice of Assessment explained: What it is, and how it applies to your taxes

Of all the important statements and documents you need to have on hand at tax time, one of the most important is your Notice of Assessment (NOA). 

An NOA is a document that the Canada Revenue Agency (CRA) will send you in the weeks following the submission of your most recent tax return. It’s a summary of your tax return from the previous year, and it contains key information such as your name, address, SIN, and your balance owed.

It’s also a document that can feel confusing as heck as you’re reading through it. That’s why we’ve created this guide to help walk you through what your NOA means, and what happens once you’ve read it.  

How to read your Notice of Assessment

The information your NOA will contain depends on your unique financial situation—below are some details that most NOA forms will feature.  

Account Summary

This outlines your personal information, your assessment date, and if you have a refund, versus an amount owing, versus zero balance.

Tax Assessment

This includes your key tax info based on what you filed in your return. This will include a summary of your total income and deductions in your net income. Depending on your situation, it could also include things like tuition and education carry-forward amounts or net capital gains/losses.

RRSP/PRPP Deduction Limit Statement

The details in this section will depend on your income, contributions to your Registered Retirement Savings Plan (RRSP), your First Home Savings Account (FHSA), pension adjustment amounts (if applicable), and room from previous years that has been carried forward. 

Want more helpful info? Check out our guide to TFSAs and RRSPs. If you’re a student or recent grad, pay attention to this one. The money you pay into tuition can be carried over after you graduate and the amount can be found here.

Home Buyer’s Plan Statement

This will only appear if you’re participating in the Home Buyer’s Plan. For those who are, this section will include a breakdown of the total amount you’ve taken out under the plan, how much you’ve repaid, how much you need to repay in the current year, and the total amount outstanding.

For more mortgages content, head to our homebuying guide. It’ll walk you through the process, from viewing properties to finding the right mortgage. 

Lifelong Learning Plan Statement

This will only appear if you’re participating in the Lifelong Learning Plan Statement. If you are, it will include a breakdown of the total amount you’ve taken out under the plan, how much you’ve repaid, how much you need to repay in the current year, and the total amount outstanding.

Your NOA will also confirm if any adjustments have been made to your tax return. If you notice errors or discrepancies on your NOA, you have 90 days after receiving it to formally request a correction of those errors through CRA.

Remember that every person’s assessment is different. So, if you don’t see all these details on yours, don’t sweat it.

You’ve read your Notice of Assessment. What happens next?

It is a good idea for you to keep your Notice of Assessment, along with the related tax return and any documents that refer to reassessment of your return, so you have all that information handy when you do the next year’s taxes. 

CRA recommends that people filing taxes in Canada keep all tax documents, including their Notice of Assessment, for six years. They can often come in handy when you file in the future, or if you have questions about previous tax years. They can even come in handy when you build your own budget.