FlagSageKey facts
| Tax basis | Residence-based |
|---|---|
| Tax year | Calendar year |
| Taxes citizens abroad | Not as a general rule |
| Residence tests recorded | 3 |
| Region | North America |
How Canada decides tax residence
Each test is recorded separately with its own ID. Meeting or missing one test does not settle residence on its own.
Factual residence: significant and secondary residential ties
The CRA decides residence case by case. Its folio lists three ties that will almost always be significant: a dwelling place in Canada, a spouse or common-law partner in Canada, and dependants in Canada. Secondary ties such as personal property, social ties, provincial health coverage and a driver's licence are weighed together. A factual resident is taxed on worldwide income.
Deemed residence: sojourning 183 days or more in a calendar year
Under paragraph 250(1)(a) of the Income Tax Act, a person who is not factually resident but sojourns in Canada for 183 days or more in a calendar year is deemed resident for the entire year and taxed on worldwide income. The CRA counts any part of a day as a day of sojourn. Whether a person is sojourning is a question of fact: a commuter who goes home each night is not, while a person on vacation in Canada is.
Treaty tie-breaker and deemed non-residence under subsection 250(5)
If a tax treaty's tie-breaker rules make a person resident of the other country, subsection 250(5) treats the person as not resident in Canada for all purposes of the Act from that time. The CRA notes that treaty tie-breakers usually look first at where the person has a permanent home. People can ask the CRA for an opinion using Form NR73 (leaving Canada) or Form NR74 (entering Canada).
Arriving, leaving and part years
Part-year residence: the folio says residence generally ends on the date a person severs all residential ties, usually the latest date on which the person, a spouse or common-law partner and dependants have left, and begins on the date ties are established on entry (CA-RES-01). On emigration a person is treated as having disposed of most property at fair market value; tax on the resulting gains is called departure tax and is reported on Form T1243. An election to defer it can be made with Form T1244 by April 30 of the year after emigration. If total fair market value of all property was more than $25,000 on leaving, Form T1161 must be filed with the return.
Reporting duties to check
- Form T1135, Foreign Income Verification Statement. The CRA says Canadian residents must file Form T1135 when the cost amount of their specified foreign property exceeds $100,000. The threshold is based on cost amount, not fair market value. Source
- Form T1161, List of Properties by an Emigrant of Canada. An emigrant whose property had a total fair market value of more than $25,000 when leaving must list property inside and outside Canada on Form T1161 by the filing due date, even if no return is otherwise required. Source
Social security
Canada has international social security agreements that aim to stop workers paying into two systems for the same work and that coordinate pension programs. The CRA's list includes the United States, Mexico, Brazil, Chile and Uruguay; check the CRA table for the current list and terms.
Living base
Canada's immigration routes divide into temporary stays (visitor status, study permits and temporary work permits) and permanent residence through programs such as Express Entry or family sponsorship. An immigration status does not decide tax residence: the CRA looks at residential ties and, for people without them, at days of sojourn.
How visas, permits and tax residence differ
Citizenship
Adults apply for citizenship after being physically present in Canada for at least 1,095 days (3 years) during a 5-year eligibility period. A person with a Canadian parent or grandparent may already be a citizen by descent and can apply for a citizenship certificate. IRCC says Canadians are allowed to take foreign citizenship while keeping Canadian citizenship.
Questions to take to a professional
- Which of my ties to Canada would the CRA treat as significant, and which secondary ties remain after a move?
- On what date would my Canadian residence end or begin given when my home, spouse or partner and dependants move?
- Could I be deemed resident by sojourning 183 days or more in a calendar year, and how are part days counted?
- Would a treaty tie-breaker treat me as resident of another country, and what would that mean under subsection 250(5)?
- Which of my assets would be caught by the deemed disposition on emigration, and is a T1244 deferral election worth discussing?
- Do I need to file Form T1135 or Form T1161, and how is cost amount worked out for my foreign property?
- Does a social security agreement cover my work between Canada and another country?
Official authorities
Sources
- Income Tax Folio S5-F1-C1, Determining an Individual's Residence StatusOfficial guidance
- Dispositions of property for emigrants of CanadaOfficial guidance
- Questions and answers about Form T1135Official guidance
- What is the purpose of international social security agreements?Official guidance
- Immigration and citizenship - Canada.caOfficial guidance
- Canadian citizenship for adults and minor children: Who can applyOfficial guidance
- What is dual citizenship? (IRCC Help Centre)Official guidance
Guides that mention Canada
Other countries in North America
- Countries covered
- Canada
- Sources
- 7 sources listed above
- Tax year
- Current rules as checked
- Review
- Not professionally reviewed
Sources checked November 8, 2026