Personal Income Tax in Canada

Make sure you understand how the Canadian personal income tax system works and how to file your annual return...

A person who is a resident of Canada is subject to Canadian income tax on their worldwide income.

Are you a Resident?

Whether or not a person is a resident of Canada is determined by many factors. The amount of time spent in Canada is not the only factor considered. Other factors include:

  • maintaining a residence in Canada
  • relatives in Canada
  • bank accounts in Canada, and
  • other social and economic ties

A person who is a resident of Canada, and moves to another country, could still be considered to be a resident of Canada for tax purposes.

For newcomers to Canada, you have to report your world income for the part of the year that you were a resident of Canada. Some personal tax credits will be prorated based on the day you immigrated to Canada.

Non-residents of or newcomers to Canada, see the following information on the CRA web site:

Non-residents and deemed residents

A person who is not a resident of Canada for any part of the year, and visits Canada for less than 183 days in a year, will pay Canadian income tax, only on income earned from Canadian sources.

A person who is not a resident of Canada for any part of the year, but who visits Canada for a total of 183 days or more in a year, may be deemed to be a resident of Canada, and subject to Canadian income tax on their worldwide income for the entire year.

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