CRA Notice of Assessment: How to Read & Respond
A line-by-line guide to reading your CRA Notice of Assessment. Covers every section of the NOA, the difference between an NOA and NOR, your RRSP and TFSA contribution room, the 8 errors to check immediately, how to dispute a reassessment and the 90-day objection deadline — by a licensed Ontario CPA.
What Is a Notice of Assessment?
A Notice of Assessment (NOA) is the official document CRA sends you after processing your income tax return. It summarises CRA's calculation of your taxable income, tax payable, credits claimed, balance owing or refund, and your contribution room for registered accounts (RRSP, TFSA). Every Canadian who files a T1 personal income tax return or a T2 corporate income tax return receives a Notice of Assessment.
The NOA is not just a receipt confirming CRA received your return. It is CRA's official position on what you owe or what you are owed. If CRA disagrees with any amount on your return — a deduction disallowed, a credit reduced, income added from a third-party slip you did not include — those changes appear on the NOA. If you do not review the NOA and respond within the deadline, CRA's version becomes the legal assessment.
The NOA is also the document that starts the clock on your right to dispute. You have 90 days from the date on the NOA to file a Notice of Objection if you disagree with the assessment. Miss this deadline and your options narrow significantly. This guide walks through every section of the NOA, what to check, and how to respond if something is wrong.
Notice of Assessment (NOA) vs. Notice of Reassessment (NOR)
| Document | What It Is | When You Receive It | What Triggers It |
|---|---|---|---|
| Notice of Assessment (NOA) | CRA's initial assessment of your tax return after filing | 2–8 weeks after filing (electronic) or 8–16 weeks (paper) | Filing your T1 or T2 return |
| Notice of Reassessment (NOR) | An updated assessment issued when CRA changes your previously assessed return | Anytime after the initial NOA — can be months or years later | CRA audit, CRA review, T1 adjustment request, amended T2, correction of errors, addition of unreported income from third-party slips |
A Notice of Reassessment Can Arrive Years Later: CRA can reassess a return within 3 years of the original NOA date for most situations, 6 years if they suspect misrepresentation due to neglect or fraud, and indefinitely if they allege fraud under Section 152(4). A NOR arriving two years after you filed is not unusual — it often results from a CRA matching program that compared your return to third-party data (T4, T5, T3, T5008 slips, real estate sale reports). Always review a NOR carefully and contact your CPA immediately.
How to Read Your Notice of Assessment — Section by Section
| Section | What It Shows | What to Check |
|---|---|---|
| Identification | Your name, address, SIN (last 4 digits), tax year and date of the notice | Confirm your name and address are correct. An incorrect address means future CRA mail goes to the wrong location. Update via CRA My Account or call 1-800-959-8281. |
| NETFILE access code | An 8-character code used to file next year's return electronically | Save this code. You will need it to NETFILE your next return through tax software. It appears on the right side of the NOA. |
| Assessment summary | Total income, net income, taxable income, total federal tax, total provincial tax, total credits, balance owing or refund | Compare every line to what you reported on your return. If CRA changed any amount, the difference means they disagreed with your filing. The most common changes are disallowed deductions, added income from unmatched slips and reduced credits. |
| Changes and explanations | A text section explaining any adjustments CRA made to your return | Read this section carefully. CRA states the specific reason for each change. Common reasons include: unreported T4 income, disallowed RRSP deduction (exceeds room), reduced charitable donation credit (missing receipt), and added capital gains from T5008 slip. |
| RRSP deduction limit | Your RRSP contribution room for the next year, calculated as 18% of prior-year earned income (max $32,490 for the current year) plus unused room carried forward minus pension adjustment | Confirm this matches your own calculation. If you are a business owner paying salary, verify that your T4 salary generated the expected RRSP room (18% x T4 employment income). |
| TFSA contribution room | Your available TFSA room based on accumulation since 2009 (or since turning 18) minus contributions plus withdrawals re-added | Compare to your own records. Over-contributions trigger a 1% per month penalty. If CRA's number is lower than expected, check for unreported contributions from a previous year. |
| Balance owing or refund | The net amount you owe CRA or the refund CRA owes you, after all taxes, credits and instalments | If balance owing: pay immediately to stop interest accruing (current rate 8% compounded daily). If refund: confirm it was deposited to the correct bank account via direct deposit. |
| Instalment reminder | If CRA expects you to pay tax by instalments for the next year, the NOA includes an instalment reminder with quarterly amounts and due dates | Instalment interest applies if you do not pay by the quarterly dates (March 15, June 15, September 15, December 15). The NOA instalment suggestion is based on your prior year — your CPA may recommend a different amount based on projected income. |
Corporate Notice of Assessment (T2) — Additional Sections
| T2 NOA Section | What It Shows | What to Check |
|---|---|---|
| Federal tax calculation | Net income, taxable income, Part I tax, SBD, federal tax payable | Confirm the SBD was applied. If CRA denied the SBD, the tax jumps from 9% to 15% on the first $500,000 — verify CCPC status. |
| Provincial tax calculation | Ontario (or applicable province) corporate tax, including the Ontario SBD reduction | Confirm the provincial rate matches expectations (3.2% for Ontario SBD-eligible income vs. 11.5% general rate). |
| Refundable dividend tax on hand (RDTOH) | The corporation's refundable tax balance on passive investment income | Critical for holdco owners. RDTOH is refunded when taxable dividends are paid. If the balance is incorrect, dividend planning is affected. |
| Capital dividend account (CDA) | The non-taxable portion of capital gains accumulated in the corporation | CDA enables tax-free capital dividends to shareholders. An incorrect CDA balance means you cannot elect the correct dividend type. |
| GRIP / LRIP balance | General Rate Income Pool (GRIP) and Low Rate Income Pool (LRIP) balances that determine eligible vs. non-eligible dividend designation | Incorrect GRIP means incorrect dividend designation — which flows through to the shareholder's T1 at different tax rates. Verify against your T2 Schedule 53 and 54. |
| Tax account balance | Instalments credited, balance owing or refund | Confirm all instalment payments were credited. Missing instalment credits result in a balance owing that should not exist. |
T2 NOAs Are More Complex: A corporate NOA contains balances (RDTOH, CDA, GRIP/LRIP) that directly affect shareholder dividend planning, holdco structures and estate planning. A single error in these balances cascades through every dividend payment and personal tax return for years. We review every T2 NOA against the filed return within 48 hours of receipt and flag any discrepancy immediately.
8 Errors to Check on Every Notice of Assessment
| # | Error to Check | Why It Matters |
|---|---|---|
| 1 | Income amount differs from what you reported | CRA may have added income from a T4, T5, T3 or T5008 slip you did not include, or from a real estate transaction report. Verify the source and confirm whether the addition is correct. |
| 2 | Deduction disallowed or reduced | RRSP deduction exceeding available room, home office expenses without proper calculation, moving expenses without qualifying relocation. CRA states the reason in the "changes" section. |
| 3 | Credit reduced or denied | Charitable donation credit denied (missing official receipt), tuition credit not transferred correctly, medical expense credit below the threshold. |
| 4 | RRSP room incorrect | If your RRSP room is lower than expected, check whether your T4 salary was reported correctly and whether a pension adjustment reduced your room. Incorrect RRSP room affects your contribution strategy for the next year. |
| 5 | TFSA room incorrect | TFSA over-contributions trigger a 1% per month penalty. If CRA's room is lower than your calculation, check for contributions you may have forgotten or withdrawals not yet re-added. |
| 6 | Instalment payments not credited | If you paid quarterly instalments but the NOA shows a balance owing, CRA may not have applied the payments. Check your CRA My Account for instalment payment history. |
| 7 | Refund sent to wrong account | If direct deposit is set up and the refund went to an old bank account, contact CRA immediately to update direct deposit information and request a re-issue. |
| 8 | SBD not applied on T2 NOA (corporate) | If CRA did not apply the Small Business Deduction, the corporate tax rate jumps from 12.2% to 26.5% on the first $500,000. Verify CCPC status and SBD eligibility on Schedule 7. |
How to Respond If You Disagree with Your Notice of Assessment
| Option | When to Use | How to File | Timeline |
|---|---|---|---|
| T1 Adjustment Request (T1-ADJ) | You agree CRA's NOA is based on your filed return, but you want to correct an error on your original return (missed deduction, forgot a slip, wrong amount) | CRA My Account → "Change my return" or mail Form T1-ADJ. Your CPA can file electronically via ReFILE. | CRA processes within 2–8 weeks (electronic) or 8–16 weeks (paper) |
| Notice of Objection (T400A) | You disagree with CRA's assessment — CRA changed your return and you believe their change is incorrect | CRA My Account → "Register a formal dispute" or mail Form T400A to the Chief of Appeals at your tax centre | Must be filed within 90 days of the NOA date. CRA Appeals review takes 6–18 months. |
| T2 Adjustment (T2-ADJ or amended T2) | Correct an error on a corporate return — missed CCA, wrong income classification, incorrect Schedule | Filed electronically through TaxCycle or mailed as a letter request with supporting schedules | CRA processes within 4–12 weeks |
| Taxpayer Relief Application (RC4288) | Request cancellation or waiver of penalties and interest due to extraordinary circumstances (illness, disaster, CRA delay, CRA error) | Submit Form RC4288 with supporting documentation | CRA review takes 3–12 months. Apply within 10 years of the tax year in question. |
The 90-Day Objection Deadline Is Absolute: You have exactly 90 days from the date on the Notice of Assessment or Reassessment to file a Notice of Objection. If you miss this deadline, you lose the right to a formal dispute through CRA Appeals and the Tax Court of Canada. The only remaining option is a late objection application under Section 166.1, which CRA can deny. Never let a 90-day deadline pass without filing if you disagree with the assessment. Contact your CPA immediately upon receiving any NOA or NOR that contains unexpected changes.
Where to Find Your Notice of Assessment
| Method | How to Access | Notes |
|---|---|---|
| CRA My Account (personal) | Sign in → Tax returns → Select the tax year → View your NOA | Available immediately after processing. Current and all prior years accessible. |
| CRA My Business Account (corporate) | Sign in → Corporation income tax → Select the tax year → View notice | T2 NOA available after processing. Includes RDTOH, CDA and GRIP balances. |
| Represent a Client (CPA access) | Your CPA signs in via Represent a Client with authorisation (T1013 or RC59) | We access and review every client's NOA within 48 hours of processing. |
| CRA sends a paper copy to the address on file unless you opted for online-only mail | Paper NOA takes 2–4 weeks after processing. Ensure your mailing address is current. |
Keep Every NOA: Your NOA contains your RRSP deduction limit, TFSA room, NETFILE access code and CRA's assessed amounts. Lenders, landlords and immigration applications frequently require a copy of your NOA as proof of income. We recommend saving a PDF copy of every NOA in your personal files — they are accessible in CRA My Account indefinitely, but having your own copy prevents delays.
NOA Review Checklist — What to Do When You Receive Your Notice
- Compare total income on the NOA to total income on your filed return — any difference means CRA changed something
- Read the "changes and explanations" section for the specific reason CRA adjusted your return
- Verify your RRSP deduction limit matches your expected room (18% x prior-year earned income + carry-forward)
- Verify your TFSA contribution room — if lower than expected, check for unreported contributions
- Confirm all instalment payments are credited — compare to your own payment records
- Check whether the refund was deposited to the correct bank account (or that the balance owing amount is correct)
- Save your NETFILE access code for next year's electronic filing
- For T2 NOA: verify SBD was applied, RDTOH balance is correct, CDA matches Schedule 89, GRIP matches Schedule 53
- If anything is wrong — contact your CPA within 48 hours to determine whether a T1-ADJ, T2-ADJ or Notice of Objection is needed
- Calendar the 90-day objection deadline from the NOA date — this deadline cannot be extended
Frequently Asked Questions — Notice of Assessment
Got a Notice of Assessment You Don't Understand? Ask a CPA.
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