Individual - Residence

Last reviewed - 15 December 2023

Generally, an individual is resident in Canada for tax purposes if there is a continuing relationship between the individual and Canada. In determining an individual's residence, all relevant facts must be considered. Residential ties of particular significance include the maintenance of a dwelling place available for the individual's occupation and the residence of the individual's spouse and dependants. Ordinarily, individuals are considered to be resident where they maintain a fixed abode for themselves and their families. Secondary factors include social and business ties and personal property, such as memberships in clubs and religious organisations, driver's licences, vehicle registration, and medical insurance coverage.

Citizenship and domicile under the tax laws of another country are not relevant.

If an individual, who, as a matter of fact, is considered not a resident of Canada, sojourns (i.e. is temporarily resident) in Canada for 183 days or more in a calendar year, the individual is deemed to be resident in Canada for that entire year.

Sometimes an individual is considered to be a resident of both Canada and of another country under that country's domestic tax laws. In these cases, to eliminate any conflicts and the double taxation that might otherwise result, Canada's tax treaties often provide special residency 'tie-breaker' rules for determining residency. Normally, under Canadian law and the residency provisions of most tax treaties, an individual is considered resident in the jurisdiction to which the individual has closer personal and economic ties, although other factors may influence this conclusion. The tie-breaker rules override the general residency tests applied under Canadian domestic law.