Key takeaways
- Significant ties: a home, a spouse or partner, or dependants in Canada
- Without significant ties, 183 days or more in Canada in a year can make you a deemed resident
- A tax treaty can make you a deemed non-resident if another country also claims you
- When leaving, your departure date is the latest of: you leave, your family leaves, or you become resident abroad
- Unclear cases: ask the CRA with Form NR74 (arriving) or NR73 (leaving)
The four tax residency statuses
| Status | Who | What Canada taxes |
|---|---|---|
| Factual resident | People with significant residential ties to Canada, including those temporarily abroad | World income |
| Deemed resident | People without significant ties who stay (“sojourn”) in Canada 183 days or more in a year, and some government workers abroad | World income for the whole year |
| Deemed non-resident | People with ties to Canada who are residents of a treaty country under that treaty’s tie-breaker rules | Certain Canadian income only |
| Non-resident | People without significant ties who live outside Canada or stay fewer than 183 days | Certain Canadian income only |
How the checker decides
- If you have any significant tie (home, spouse or partner, dependants) and another country also claims you, it flags a possible deemed non-resident case for treaty advice.
- If you have a significant tie, you are likely a factual resident.
- If not, but you spent 183 days or more in Canada, you are likely a deemed resident.
- If you have no significant ties but 3 or more secondary ties, the result is unclear: the CRA weighs all ties together.
- Otherwise, you are likely a non-resident.
Real decisions look at all the facts, including how permanent your stay is. The CRA can give an opinion if you send Form NR74 (entering) or NR73 (leaving).
When newcomers become residents
Most immigrants become residents on the day they arrive and set up a home, often with their family. That date starts your world-income reporting and prorates your credits. Workers and international students who rent a home in Canada are usually residents too.
Example: you land on March 10 but your spouse and children stay abroad until August and you live in a hotel until you rent an apartment on April 1. Your residency date is likely April 1, when you set up a home. Keep proof such as your lease.
Leaving Canada: your departure date and departure tax
The CRA says you become a non-resident on the latest of these dates: the day you leave Canada, the day your spouse or partner and dependants leave, or the day you become a resident of your new country.
On that date you are generally treated as if you sold certain property at its fair market value. This “departure tax” can create a capital gain on things like shares. Some property is excluded, such as Canadian real estate and most registered plans. If the property you own is worth more than $25,000 in total, you file Form T1161. Read our departure tax guide and try the departure tax calculator. Also see what happens to your TFSA after you leave.
Next steps
- Arriving: read taxes for newcomers and whether you need to file.
- Counting days for travel or snowbird stays: use the snowbird day tracker.
- Unclear or treaty case: get advice from a cross-border tax professional.
Common questions
Does my immigration status decide my tax residency?
Is the 183-day rule the main test?
What is a deemed non-resident?
Should I send Form NR74 or NR73?
Is this the same as the PR residency obligation?
Sources
- CRA: Determining your residency status
- CRA: Income Tax Folio S5-F1-C1, Determining an individual’s residence status
- CRA: Leaving Canada (emigrants)
- CRA: Newcomers to Canada (immigrants)
- CRA: Form NR74, Determination of residency status (entering Canada)
- CRA: Form NR73, Determination of residency status (leaving Canada)
- CRA: Tax treaties