Have you recently moved to Canada and are confused about your tax status?
Navigating taxes in a new country can be challenging, that’s where we can help!
In this article, we will help you to determine if you are considered a resident or non-resident of Canada for tax purposes, how much tax you will pay, and how to file your Canadian tax return.
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Who is considered a non-resident in Canada?
A non-Canadian resident classifies as anyone who resides in Canada for 183 days or less in the year, and who does not have significant residential ties.
Significant residential ties includes:
- A home in Canada
- Dependents in Canada
- A spouse of common-law partner in Canada
Along with this, there are also secondary residential ties which may be relevant to determining if you are considered a non-resident in Canada, including:
- A car, furniture, or other personal property in Canada
- Social ties, such as memberships to organizations
- Economic ties, such as a Canadian bank account
- A Canadian driver’s license
- A Canadian passport
The average Canadian tax refund is $998
Non-resident taxation Canada – how much tax will I pay?
Non-residents are only required to pay tax on their income earned in Canada.
Non-residents will be required to pay federal and provincial tax.
The rate at which you will pay this tax depends on your income and the province that you reside in.
Additionally, Canada has tax treaties with many countries to help avoid double taxation. If you are a resident of a country that has a tax treaty with Canada, you may be eligible for reduced tax rates, or even an exemption from certain taxes. It’s important to review the specific tax treaty between Canada and your home country to understand how it impacts your tax liability.
| Income Bracket | Federal Tax Rate |
|---|---|
| On the first $57,375 of taxable income | 15% |
| From $57,375 up to $114,750 | 20.5% |
| From $114,750 up to $177,882 | 26% |
| From $177,882 up to $253,414 | 29% |
| Over $253,414 | 33% |
What is the 90% rule and how does it affect how much tax I pay?
The 90% rule applies to individuals who did not earn income in Canada for the full tax year, such as newcomers, emigrants, or non-residents with Canadian income.
If at least 90% of your total income for the year was earned in Canada, you will qualify for the Basic Personal Amount (BPA) tax credit.
So, what does this mean? This essentially means you can earn from up to $16,129 ($15,705 in 2024) without paying federal tax on this income.
The average Canadian tax refund is $998
How do Canadian non-residents pay tax?
As a non-resident in Canada, your tax will be subject to withholding tax in Canada. This means that tax will automatically be deducted at source by your employer.
As previously mentioned, the rate of tax that you pay depends on your income amount, where you reside, and if you are eligible for the 90% rule.
How to file my Canadian non-resident tax return?
You can file your non-resident tax return directly with the CRA.
However, non-resident tax filing in Canada can be confusing, and many people end up missing out on valuable tax benefits that they are entitled to. If you find the process of completing your tax return daunting and you’re unsure of your tax entitlements, you can use a trusted tax agent like Taxback.
When you apply with Taxback, we will handle the entire process for you, and your maximum tax refund is guaranteed!
To file your tax return, you will need:
- Your Social Insurance Number (SIN) or Individual Tax Number (individual tax) number
- T4 slip
- Receipts for eligible expenses
The average Canadian tax refund is $998
Non-resident tax return Canada deadline
Non-residents are required to file their tax return by 30 April of the year following the tax year (for the 2024 tax year, the deadline is April 30, 2025).
Avoid the deadline rush, file your non-resident Canada tax return today.
Remember, the sooner you file, the sooner you will receive your Canadian tax refund. It’s best to submit your tax return as soon as you receive your T4 slip from your employer.
Ready to get started? Complete our short application form.
Last Updated on April 9, 2025
