Types of Residency in Canada
Factual Full-Time Resident
You live in Canada for most of the year and have strong ties, such as:
A home in Canada
A spouse or dependents living in Canada
Social, economic, or personal ties (e.g., healthcare coverage, bank accounts, or memberships)
Factual Part-Year Resident
You become or cease to be a resident of Canada during the tax year
You are taxed on worldwide income only for the period you are a resident
Deemed Full-Time Resident
You don’t meet the factual full-time resident criteria but:
You stay in Canada for 183 days or more in the year
You have no significant residential ties to another country
Permanent Resident
You are a non-Canadian citizen with legal permission to live and work in Canada permanently
Permanent residency often implies strong ties to Canada, which may make you a factual or deemed resident for tax purposes
You are generally taxed on worldwide income if you have substantial ties to Canada
Non-Resident
You live outside Canada and don’t have significant ties to Canada
You are only taxed on income earned in Canada
How to Determine Your Residency
Review Your Ties to Canada
Consider your home, family, and other personal connections
Check if you maintain social, financial, or economic ties to Canada
Assess Time Spent in Canada
If you spend 183 days or more in Canada during the year, you may be a deemed resident
Permanent Residents
Assess your legal status and whether you maintain significant residential ties to Canada
Consult CRA Guidelines
Use the CRA’s residency tools or publications to better understand your status
Ask a Tax Expert
If you’re unsure, a tax professional can help clarify your residency status
Why Residency Matters
Your residency status determines:
Whether you are taxed on worldwide or Canadian-source income
Eligibility for tax credits, deductions, and benefits