Canada tax residency: factual resident, deemed resident (183-day sojourner), deemed non-resident, departure return, departure tax on deemed disposition. Trigger on: "Canadian tax resident", "CRA residency", "leaving Canada taxes", "departure return Canada", "factual resident Canada", "183 days Canada", "sojourner Canada", "deemed resident Canada", "moving to Canada taxes", "residential ties Canada", "NR73".
Source-cited draft.Written from sources but not reviewed by a licensed practitioner, so it may be incomplete or wrong. General reference only; don't file or take a position on it without professional review.
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Every figure is drawn from this Tax Guide and cited to its source.
Quick reference
| Item | Value | |---|---| | Primary test | Factual residence (residential ties — no day-count threshold) | | Deemed resident | Sojourned in Canada 183+ days in year | | Tax authority | Canada Revenue Agency (CRA) | | Departure return | Form T1 with "departure date" noted; departure tax on deemed disposition | | Key form | NR73 (determination of residency status) |
Ordinarily resident
A person is a Canadian tax resident if they ordinarily reside in Canada — assessed on the totality of residential ties.
Primary ties (significant weight)
Dwelling in Canada (owned or leased); Spouse or common-law partner in Canada; Dependants in Canada
Secondary ties
Personal property in Canada (car, furniture); Social ties (clubs, religious community); Professional ties (Canadian professional memberships, employment); Canadian bank accounts, credit cards, driving licence; Provincial health card; Mailing address in Canada
183-day sojourner rule
A person who is NOT factually resident in Canada but sojourns (is temporarily present) in Canada for 183 days or more in a calendar year is deemed resident for the entire year and taxed on worldwide income.
Ceasing residency conditions
A person ceases to be a Canadian resident when they sever their residential ties with Canada — typically by: 1. Leaving Canada with no intention to return 2. Establishing a permanent home in another country 3. Moving spouse/dependants out of Canada 4. Disposing of Canadian residential property
Notification requirement
No formal notification required to the CRA, but filing Form NR73 (determination of residency status) provides certainty.
Quick reference
| Item | Value |
|---|---|
| Primary test | Factual residence (residential ties — no day-count threshold) |
| Deemed resident | Sojourned in Canada 183+ days in year |
| Tax authority | Canada Revenue Agency (CRA) |
| Departure return | Form T1 with "departure date" noted; departure tax on deemed disposition |
| Key form | NR73 (determination of residency status) |
No single factor is determinative — CRA weighs all ties together.
Working paper only. Residency determination is highly fact-specific — the residential ties analysis requires careful review of all connections to Canada. Have a qualified Canadian tax adviser review before severing ties or filing a departure return.
Other Canada computations in the OpenAccountants Tax Library.
Departure return filing
In the year of departure, the person files a departure return (T1 with departure date). Tax applies on worldwide income up to the departure date.
Deemed disposition on departure
Most property is deemed disposed of at fair market value on the departure date, triggering capital gains tax on unrealised gains.
Exceptions — no deemed disposition for
Canadian real property (Canada retains taxing rights when eventually sold); Canadian business property used in a Canadian permanent establishment; Registered accounts (RRSP, TFSA, RRIF) — not deemed disposed but may lose treaty-based deferral in the destination country
Deferral option
The departure tax can be deferred (with security posted to CRA) until the property is actually sold.
Deemed non-resident
A factual Canadian resident who is also resident in a treaty country and is determined to be resident of that treaty country under the DTA tie-breaker rules is treated as a deemed non-resident of Canada — taxed only on Canadian-source income.
DTA network and tie-breaker order
Canada has DTAs with 90+ countries. Treaty Article 4 tie-breakers: 1. Permanent home 2. Centre of vital interests 3. Habitual abode 4. Nationality 5. Competent authority
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.
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