Determining your residency status - Canada.ca (2024)

Under Canada's tax system, your income tax obligations to Canada are based on your residency status. Youneed toknow your residency status before you can know what your taxresponsibilities and filingrequirements to Canada are.

To determine your residency status, all of the relevant facts in your case must be considered, including residential ties with Canada and the length of time, purpose, intent, and continuity of the stay while living inside and outside Canada.

The following steps can help you determine your residency status for income tax purposes and your tax obligations to Canada.

Step 1: Determineif youhave residential ties with Canada

The most importantthing to consider when determining your residency statusin Canada for income tax purposes is whether or notyou maintain or establish significantresidential ties with Canada.

Significant residential ties to Canada include:

Secondary residential ties that may be relevant include:

  • personal property in Canada, such as a car or furniture
  • social ties in Canada, such as memberships in Canadian recreational or religious organizations
  • economic ties in Canada, such as Canadian bank accounts or credit cards
  • a Canadian driver's licence
  • a Canadian passport
  • health insurance with a Canadian province or territory

The information above is general in nature. For more information on residential ties, see Income Tax Folio S5-F1-C1, Determining an Individual's Residence Status.

Step 2: Determine your residency status and its tax implications

Your residency status if youleft Canada

You may be considered a factual resident of Canadaif you maintain residential tieswith Canada and are:

  • working temporarily outside Canada
  • vacationing outside Canada
  • commuting (going back and forth daily or weekly) from Canada to your place of work in theUnited States
  • attending schoolin another country

You may be considered an emigrantif you left Canada and established a permanent home in another country and you severed your residential tieswith Canada ceasing to bea resident of Canada in thetax year.

You may be considered a deemednon-residentof Canada if you established residentialties in a country thatCanada has a tax treaty with and you are considered a resident of that country, but you are otherwise a factual resident of Canada, meaning you maintain significant residential ties with Canada. The same rules apply to deemed non-residents as non-residents of Canada.

You are usually considered a factual resident or a deemed resident of Canada if you left Canada and you are a government employee outside Canada, which includes members of the Canadian Forces posted abroad. For more information, see Government employees outside Canada.

Your residency status if youentered Canada

You may be consideredan immigrantif you left another country to settle in Canada and established significant residential tieswith Canada and became a resident of Canada in thetax year.

You may be considered a deemednon-residentof Canada if you have residentialties in a country that Canada has a tax treaty with and you are considered to be a resident of that country, but you are also a factual resident of Canada because you established significant residential tieswith Canada. The same rules apply to deemed non-residents as non-residents of Canada.

You may be considered a deemed resident of Canadaif you have not established significant residential ties with Canada to be considered a factual resident, but you stayed in Canada for183 or more daysin the year.

Your residency status if you normally, customarily, or routinely live in another country

Youmay beconsidered a non-resident of Canadaif you did not have significant residential ties with Canada and:

  • You lived outside Canada throughout the year (except if you were a deemed resident of Canada)
  • Youstayed in Canada forless than 183 daysin the tax year

If you wantthe CRA'sopinion on your residency status, completeForm NR74, Determination of Residency Status (Entering Canada), or Form NR73, Determination of Residency Status (Leaving Canada), whichever applies.

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Determining your residency status - Canada.ca (2024)

FAQs

How do I check my residency status in Canada? ›

If you want the CRA's opinion on your residency status, complete Form NR74, Determination of Residency Status (Entering Canada), or Form NR73, Determination of Residency Status (Leaving Canada), whichever applies.

How does California determine if you are a resident? ›

You will be presumed to be a California resident for any taxable year in which you spend more than nine months in this state. Although you may have connections with another state, if your stay in California is for other than a temporary or transitory purpose, you are a California resident.

How do I keep my Canadian residency while living abroad? ›

To keep your permanent resident status, you must have been in Canada for at least 730 days during the last five years. These 730 days don't need to be continuous. Some of your time abroad may count towards the 730 days.

What is the 183 day rule in Canada? ›

If you sojourned in Canada for 183 days or more (the 183-day rule) in the tax year, do not have significant residential ties with Canada, and are not considered a resident of another country under the terms of a tax treaty between Canada and that country, see Deemed residents of Canada for the rules that apply to you.

How long can Canadian citizen stay outside Canada? ›

How long are you welcome to visit another country? A Canadian can stay for up to 182 days per calendar year (without paying U.S. income tax).

How long can you stay out of Canada if you are a permanent resident? ›

If you haven't been in Canada for at least 730 days during the last five years, you may lose your PR status.

What determines where you are a resident? ›

You are a resident of the United States for tax purposes if you meet either the green card test or the substantial presence test for the calendar year (January 1 – December 31).

What determines what state you are a resident of? ›

Your state of residence is determined by: Where you're registered to vote (or could be legally registered) Where you lived for most of the year. Where your mail is delivered.

How long do you have to live in CA to be considered a resident? ›

To meet these requirements, you must be continuously physically present in California for more than one year (366 days) immediately prior to the residence determination date (generally the first day of classes) and intend to make California your home permanently.

What happens if I stay out of Canada for more than 6 months? ›

Residency visa or permit: If you stay in a country beyond the period allowed by a typical tourist visa (usually three to six months) for reasons such as retirement abroad, you'll need a residency visa or permit.

Can I live in Canada if I am a US citizen? ›

3) Can I live in Canada as an American citizen? Yes, if you are an American citizen, you may live in Canada. If your stay exceeds 180 days, you will most likely need a visa. You will also need a visa or work permit if you intend to work in Canada.

Can I live in Canada and keep my US citizenship? ›

A U.S. citizen may naturalize in a foreign state without any risk to his or her U.S. citizenship. However, persons who acquire a foreign nationality after age 18 by applying for it may relinquish their U.S. nationality if they wish to do so.

Can I be resident in the US and Canada for tax purposes? ›

For example, Canada has a tax treaty with the United States (U.S.). Individuals who are considered residents of both Canada and the U.S. will be considered residents for tax purposes in the country in which they have established the strongest ties.

How long can a Canadian stay in the US if they own a house? ›

According to the U.S. Immigration Act, followed by the USCIS, a Canadian resident who is not a U.S. citizen, nor a green card holder, can stay in the U.S. for no more than 180 days a year.

What is a deemed non resident of Canada? ›

Are you a non-resident? You are considered a non-resident of Canada, for income tax purposes, if you normally or routinely live in another country, or if you don't have significant residential ties in Canada and you lived outside the country throughout the year or your stay in Canada was less than 183 days.

Can you collect Canada Pension if you live outside of Canada? ›

If you have lived or worked in Canada and in another country, or you are the survivor of someone who has lived or worked in Canada and in another country, you may be eligible for pensions and benefits from Canada and/or from the other country because of a social security agreement.

Can I keep my Canadian bank account if I move abroad? ›

Note: You can keep a Canadian bank account and it can be really useful while living in the U.S. or overseas to have one! But change your address on this account to your new non-Canadian address. Do not change it to a family member's address in Canada, even though it may seem convenient to do so.

Can I stay in Canada for 6 months then leave and come back? ›

You can leave and come back to Canada multiple times as long as your visitor visa has not expired.

Can you have permanent residency in two countries? ›

FAQ Transcript: The question here is can I have permanent residency in more than one country? Yes. You can.

What is the difference between a permanent resident and a citizen in Canada? ›

A permanent resident is a newcomer who Canada has extended the ability to live and work in Canada permanently. A Canadian citizen has been confirmed as a Canadian citizen by the federal government like every other naturalized citizen.

What is the difference between citizenship and permanent residency? ›

The most significant difference between citizenship and permanent residence is the ability to apply for a passport for the country in which you reside. Permanent residents do not have the right to apply for a passport.

What is the difference between residency and domicile? ›

What's the Difference between Residency and Domicile? Residency is where one chooses to live. Domicile is more permanent and is essentially somebody's home base. Once you move into a home and take steps to establish your domicile in one state, that state becomes your tax home.

What is the 183-day rule for taxes? ›

Understanding the 183-Day Rule

Generally, this means that if you spent 183 days or more in the country during a given year, you are considered a tax resident for that year. Each nation subject to the 183-day rule has its own criteria for considering someone a tax resident.

What is the residency rule? ›

Many states that collect income taxes use the 183-day rule to decide who is considered a resident of their state. According to the rule, if you spend at least 183 days of a year in a state — even if you have established your domicile in another state — you are considered a resident of the state for tax purposes.

Can you be considered a resident of two states? ›

Legally, you can have multiple residences in multiple states, but only one domicile. You must be physically in the same state as your domicile most of the year, and able to prove the domicile is your principal residence, “true home” or “place you return to.”

Does getting mail at an address establish residency? ›

No. Everyone can post things to any address in compliance with the law. For example, some companies send greeting cards to customers, but this does not mean that they can be residents of that address.

What is the nine month presumption of residence rule? ›

Presumption of residence—nine month rule.

An individual who spends, in the aggregate, more than nine months of any taxable year in California is presumed to be a California resident.

Can I live in California and not be a resident? ›

The “simple” answer to the question is, yes, you can work in California without being considered a resident. However, generally, you are still required to pay taxes on income for services performed in California. So while you may not be a resident, you may still owe the state taxes for the work performed there.

Am I still a California resident if I live abroad? ›

California's 'Safe Harbor' rule for expats

Known as the Safe Harbor rule, expats who move abroad for at least 546 consecutive days on an employment contract are not considered state residents for tax purposes.

What qualifies as a California non resident? ›

A nonresident is a person who is not a resident of California. Here for a short period of time to complete: A job. A transaction.

Can a US citizen stay out of the country for more than 6 months? ›

If you plan to stay outside of the United States for more than one year but less than two years, you will need a re-entry permit for readmission. You must be physically present in the United States when you file the Form I-131 to apply for the permit.

How long can a dual citizen stay in Canada? ›

Being a citizen of another country also allows the Canadian with dual citizenship to stay in that country for as long as he or she wants and even work there, open a bank account, buy real estate, have access to the country's public education and public health insurance plans.

Is there an exit tax in Canada? ›

When you leave Canada, you are considered to have sold certain types of property (even if you have not sold them) at their fair market value (FMV) and to have immediately reacquired them for the same amount. This is called a deemed disposition and you may have to report a capital gain (also known as departure tax).

What happens to my Social Security if I move to Canada? ›

If you have Social Security credits in both the United States and Canada, you may be eligible for benefits from one or both countries. If you meet all the basic requirements under one country's system, you will get a regular benefit from that country.

Can American retirees move to Canada? ›

Retirees with family in Canada also can pursue permanent residency under the country's Parents and Grandparents Program. About 30% of all immigrants coming to Canada are under the sponsorship of family members. Canada also grants permanent residency on humanitarian and compassionate grounds.

How can I legally move to Canada from the US? ›

Services and information
  1. Express Entry. Immigrate as a skilled worker.
  2. Family sponsorship. Sponsor your relatives, including your spouse, partner, children, parents, grandparents, and others to immigrate.
  3. Provincial nominees. ...
  4. Quebec-selected skilled workers. ...
  5. Atlantic Immigration Program. ...
  6. Caregivers. ...
  7. Start-up Visa. ...
  8. Self-employed.

Can a U.S. citizen be denied entry back into the USA? ›

Citizens: You only have to answer questions establishing your identity and citizenship (in addition to customs-related questions). Refusal to answer other questions may cause delay, but officials may not deny you entry into the U.S. if you have established your identity and citizenship.

Do dual citizens have to pay taxes in both countries? ›

Being a dual citizen means that a person is considered a citizen/national of two countries at the same time, and is subject to both country's tax laws. Something to remember is that each country has its own laws dictating who qualifies as a citizen.

Can I lose my citizenship if I live outside Canada? ›

A simple answer is no.

Is U.S. Social Security taxable in Canada? ›

Exempt foreign income

If you have been a resident of Canada receiving U.S. Social Security benefits continuously during the period starting before January 1, 1996, and ending in 2022, you can claim a deduction equal to 50% of the U.S. Social Security benefits received in 2022.

Do dual citizens pay taxes to U.S. or Canada? ›

Yes, U.S./Canada dual citizens file U.S. taxes

A common question we hear is, “do U.S. dual citizens in Canada have to file U.S. taxes?” Yes, if you are a citizen or resident alien of the United States, you have a U.S. tax obligation, even if you're a dual citizen of the U.S. and Canada.

What are the taxation requirements of a U.S. citizen residing in Canada? ›

Taxes: As a US expat in Canada, you'll need to file a US tax return each year and a Canadian tax return if you have Canadian income. However, the US and Canada have a tax treaty to avoid double taxation.

Does owning a home in Canada make you a resident? ›

There is no residency or citizenship requirement for buying and owning property in Canada. You can occupy a Canadian residence on a temporary basis, but you will need to comply with immigration requirements if you wish to have an extended stay or become a permanent resident.

Do Canadian snowbirds pay US taxes? ›

Do Snowbirds have to file US taxes? No, Canadian snowbirds are not required to file US taxes so long as you abide by the 183-day rule and/or maintain significant residential ties in Canada.

What is the 183-day rule in Canada? ›

If you sojourned in Canada for 183 days or more (the 183-day rule) in the tax year, do not have significant residential ties with Canada, and are not considered a resident of another country under the terms of a tax treaty between Canada and that country, see Deemed residents of Canada for the rules that apply to you.

Can I own property in Canada as a non-resident? ›

Effective as of January 1, 2023, the Prohibition on the Purchase of Residential Property by Non-Canadians Act (the “Act”) prevents non-Canadians from buying residential property in Canada for 2 years. IMPORTANT: Please read the disclaimer for this page.

How long can you live in Canada without becoming a resident? ›

Most visitors can stay for up to 6 months in Canada. If you're allowed to enter Canada, the border services officer may allow you to stay for less or more than 6 months. If so, they'll put the date you need to leave by in your passport. They might also give you a document.

Do I have to declare non-resident in Canada? ›

As a non-resident of Canada, you are subject to Canadian income tax on most Canadian-source income paid or credited to you during the year unless all or part of it is exempt under a tax treaty.

How do I check the status of my residency? ›

Online: Use the case status online tool to check for updates about your immigration case. You will need your 13-character receipt number from your application or petition. By phone: If you are calling from the U.S., contact the USCIS National Customer Service Center at 1-800-375-5283 or TTY 1-800-767-1833.

How long does it take to establish residency in Canada? ›

You (and some minors, if applicable) must have been physically in Canada for at least 1,095 days (3 years) during the 5 years before the date you sign your application. We encourage you to apply with more than 1,095 days of living in Canada in case there's a problem with the calculation.

How do you know if you are a permanent resident? ›

Your best proof that you are a U.S. resident is your permanent or conditional resident card, also known as a green card, Alien Registration Card, or Permanent Resident Card. Usually, you will receive the actual card in the mail within a few weeks of your application being approved or your entry to the United States.

How long does residency take in Canada? ›

To meet these residency obligations, you must be physically present in Canada for at least 730 days (2 years) in every 5-year period. The 5-year period is assessed on a rolling basis. Immigration, Refugees and Citizenship Canada (IRCC) will look back at your time in Canada over the previous 5 years.

How can I check my immigration status with Social Security number? ›

Dial 1-800-898-7180. Press 1 for English or 2 for Spanish. Enter your 8-digit A number. The case status system will read back the number you entered.

What are the 4 types of immigration status? ›

When immigrating to the US, there are four different types of immigration status categories that individuals may fall into: citizens, residents, non-immigrants, and undocumented immigrants.

How do I find my residency number? ›

How Do I Find The Residency Number? The reference number consists of 9 numbers and is located in the civil card in the back, specifically in the part between the “serial number” and “address”, and you can view the reference number in the entry visa as well as the unified number in the name of the passport.

Can I live in Canada as a US citizen? ›

3) Can I live in Canada as an American citizen? Yes, if you are an American citizen, you may live in Canada. If your stay exceeds 180 days, you will most likely need a visa. You will also need a visa or work permit if you intend to work in Canada.

Can I be a resident of Canada and USA? ›

Individuals who are considered residents of both Canada and the U.S. will be considered residents for tax purposes in the country in which they have established the strongest ties.

How hard is it for an American to move to Canada? ›

Generally speaking, moving to Canada is not too difficult. Because Canada is open to welcoming new immigrants and offers several immigration programs, it's easier for you to qualify for one immigration stream. Still, you have to meet the requirements for the pathway you want to apply for.

What is the difference between resident and permanent resident? ›

A residence permit is a temporary residence permit issued to a foreigner for a specified period of usually one to two years. It needs to be renewed regularly. Permanent residence is a permanent residence permit. You can get it only after a residence permit, if you have lived in the country for at least five years.

What makes me a permanent resident? ›

A Green Card holder is a permanent resident that has been granted authorization to live and work in the United States on a permanent basis. As proof of that status, U.S. Citizenship and Immigration Services (USCIS) grants a person a permanent resident card, commonly called a "Green Card."

Is it easy to get Canadian residency? ›

80% of applications for permanent residency submitted through Express Entry are processed within 6 months, making it one of the fastest immigration systems in the world.

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