Determining Your Residency Status
The Canada Revenue Agency (CRA) determines your residency status based on your residential ties with Canada. This affects your tax obligations. Whether you are entering, leaving, or living outside Canada, you need to know your status to understand your filing requirements.
Significant Residential Ties
Significant ties include:
- A home in Canada
- A spouse or common-law partner in Canada
- Dependants in Canada
Secondary ties may include:
- Personal property (e.g., car, furniture)
- Social ties (e.g., memberships)
- Economic ties (e.g., bank accounts, credit cards)
- Canadian driver's licence
- Canadian passport
- Provincial/territorial health insurance
Steps to Determine Status
The CRA website provides an online questionnaire that guides you based on your situation. Two main scenarios:
Entering Canada
- If you plan to live permanently, you are likely a resident (part-year resident for the year of immigration).
- If you stay less than 183 days and do not establish significant ties, you are likely a non-resident.
- If you stay more than 182 days but do not establish significant ties, and you are a resident of a treaty country, you may be a deemed non-resident.
Leaving Canada
- If you maintain significant ties and are working temporarily abroad, teaching/studying, commuting to the U.S., or vacationing, you may be a factual resident.
- If you sever ties and establish a permanent home elsewhere, you are likely an emigrant and a non-resident from the date of departure.
Official Determination Forms
To get a formal CRA opinion, you can complete:
- NR73 (for leaving Canada)
- NR74 (for entering Canada)
Tax Treaties
If you are a resident of a treaty country, tie-breaker rules may affect your status, potentially making you a deemed non-resident.
Double Taxation
Tax treaties often prevent double taxation, but specifics depend on your situation.
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