NOA – Notice of Assessment 

After you file your tax return, the Canada Revenue Agency (CRA) sends a Notice of Assessment (NOA). It confirms your refund or balance owing, shows your RRSP deduction limit, notes carryforward amounts, and flags any changes to your return.

At Optimize, we use your NOA to guide tax planning, savings decisions, and ensure your strategy reflects your most current tax data. Whether contributing to an RRSP or planning cash flow, your NOA is a key tool.

The Role of the NOA in Your Tax Year

Your NOA is the CRA’s formal response to your personal income tax return. It typically arrives a few days to a few weeks after you file and is sent either by mail or through your CRA My Account online. It summarizes the outcome of your return, including:

• The total income you reported

• Deductions and credits claimed

• Tax owing or refunded

• Any penalties or interest applied

• Your new RRSP contribution room

• Carryforward amounts like capital losses or tuition credits

This document is not just a record of the past. It informs the financial choices you make for the next tax year, including how much you can contribute to registered accounts, whether to adjust tax instalments, or how to use unused deductions.

Why the NOA Matters in Your Financial Plan

Many people treat the NOA as a receipt and file it away. But if you are serious about long-term financial planning, the NOA deserves closer attention. The figures it reports have real implications for your strategy.

This matters when you are deciding whether to:

• Max out your RRSP contribution to reduce your taxable income

• Claim unused credits in a higher-income year

• Adjust your tax planning if the CRA reassessed your return

• Plan your cash flow around an upcoming refund or payment

Learn how to read a NOA to better understand the details and terminology used throughout your return.

For example, let’s say your NOA reveals that you over-contributed to your RRSP by accident. You now face a penalty unless you withdraw the excess right away. Or you might discover that you have $5,000 in unused tuition credits from earlier years. Knowing this allows you to offset a higher tax bill in the future.

Learn how to read a NOA

Understanding your Notice of Assessment (NOA) isn’t just about seeing if you got a refund. It’s your official confirmation from the CRA that your return has been processed — and a chance to catch any issues or adjustments. Whether you’re confirming your RRSP room, checking for unpaid taxes, or reviewing CRA’s calculations, your NOA is an essential part of your financial picture.

At Optimize, we review NOAs with you to ensure accuracy and turn them into valuable planning tools. This article breaks down the NOA into clear sections and common entries so you can make sure your return reflects your intentions — and supports your long-term goals.

Identification and Basic Information

This section confirms who the assessment applies to and when it was issued.

Your name and address
Verifies that the NOA matches your personal tax return.

Tax year assessed
Shows which calendar year’s return this NOA relates to.

Date of issue
Important for deadlines. The clock starts ticking for objection or payment timelines from this date.

Social Insurance Number (SIN)
Used by CRA to match your NOA with your personal file.

Account Summary

This section shows whether you owe money, are getting a refund, or are balanced for the year.

• Refund or balance owing
  If you paid too much tax during the year, you’ll see a refund. If you paid too little, the amount owing will be listed here.

• Previous balance
  Any unpaid tax from earlier years that’s still outstanding.

• Payments applied
  Lists payments, instalments, or credits that were applied to your account before the NOA was issued.

Summary of Changes

This section compares what you filed with what CRA assessed. It’s one of the most important parts of the NOA.

• Line-by-line comparison
  Shows your reported amounts vs. CRA’s adjustments, if any. This can include income, deductions, or credits.

• Explanation of changes
  CRA will note why they made any adjustments — such as a missed slip, contribution limit, or benefit eligibility issue.

• Additional documents required
  If CRA wants to see more information, they will ask for it here.

RRSP and TFSA Information

Your NOA often includes carryforward room and contribution limits for the next year. These are essential for planning your savings strategy.

• RRSP deduction limit for the following year
  Shows your available RRSP contribution room. This is based on earned income, unused carryforward room, and pension adjustments.

• TFSA contribution room (if applicable)
  May be included depending on how you receive your NOA. It’s also available through your CRA My Account.

• Home Buyers’ Plan (HBP) and Lifelong Learning Plan (LLP) balances
  Lists any outstanding repayments you must make in the following tax year.

Contact and Appeals Information

If you disagree with your NOA or have questions, this section tells you what to do next.

• CRA contact information
  Includes numbers to call if you need clarification or want to dispute an adjustment.

• Objection deadlines
  You typically have 90 days from the date of assessment to file a formal objection.

• Reference number and assessment ID
  Used when communicating with CRA to ensure they access the correct file.