Who this is for
- Individuals who stop being Canadian residents partway through the year
- People filing the departure-year return for themselves
Not covered here
- Deciding your exact departure date
- Departure tax on the deemed sale of property
- Section 217 returns and filing in years after you leave
- Québec's own return and credits
How is a part-year resident return split at the departure date?
A part-year resident return has two parts. Up to your departure date you report world income, from inside and outside Canada. After it, you report only certain Canadian-source income; foreign income earned after you leave stays off the return. World income includes rent, interest or salary from abroad up to your departure date (CRA: Leaving Canada; Income Tax Act s. 114).
| Part of the year | Income on the return | Credits |
|---|---|---|
| January 1 to departure (resident) | World income | Some in full for this period; the rest prorated by days |
| Departure to December 31 (non-resident) | Canadian employment or business income, taxable Canadian property gains, taxable Canadian scholarships | A short list, or all if the income test below is met |
You enter the departure date on page 1 and use the return and Form 428 of the province or territory where you lived on that date. The return is due April 30 of the next year (June 15 if you or your spouse ran a business, with any balance still due April 30). Picking the date is its own question: see the date you become a non-resident. For filing from abroad, see filing your departure return from abroad.
The case stops being simple when you still have Canadian work, business or property-sale income after your departure date, have a spouse who is not resident, lived in Québec, or own property that triggers departure tax (departure tax example).
Gather:
- Your departure date and proof of it
- Final pay stub and T4 from each Canadian employer
- Every other slip (T5, T3, T4A) for the resident period, and NR4 slips for income after you left (usually not reported)
- Foreign income from January 1 to your departure date, in Canadian dollars, and proof of foreign tax paid on it
- If you claim credits under the income test: net income after departure, Canadian and foreign shown separately, in Canadian dollars
- A list of what you owned on your departure date and its value (Form T1161 if the total is over $25,000; see leaving Canada)
- Receipts for medical expenses, donations and tuition paid while resident
- Last year's notice of assessment (carryforwards and RRSP room)
Which income after departure goes on the return, and which is settled by withholding?
After you leave, Canadian employment income, business income from a business carried on in Canada, gains on certain Canadian property and the taxable part of Canadian scholarships go on the return. Rent, dividends, pensions, RRSP and RRIF payments, CPP and OAS paid after departure are usually taxed by non-resident withholding at source and stay off this return (CRA: Non-residents of Canada).
| Canadian income received after you leave | Where it is taxed |
|---|---|
| Pay for work done in Canada | On the departure return |
| Business carried on in Canada | On the departure return |
| Gain on taxable Canadian property | On the departure return; the buyer must hold back 25% of the price (50% on depreciable property such as a rental building) unless you get a section 116 certificate first: see buyer held back your sale proceeds |
| Rent from Canadian real property | Withholding of 25% of gross rent; a later section 216 return can tax net rent instead |
| Pension, RRSP, RRIF, CPP, OAS | Withholding; a section 217 return is optional |
| Dividends | Withholding |
| Interest from an arm's-length Canadian payer | Generally no Canadian tax (s. 212(1)(b)) |
The withholding is usually your final Canadian tax on that income. For rent, see non-resident landlords. Pay or a bonus paid after you left for work done in Canada belongs to severance and final pay after leaving.
How are deductions split between the resident and non-resident parts?
Most deductions work as usual against the income on the return; the CRA says you can claim most deductions that apply to you (CRA: Leaving Canada). Section 114 of the Income Tax Act sets special rules for the later deductions, such as loss carryforwards, tying them to the resident period unless all or substantially all of your income after departure is on the return (s. 114).
- Loss carryforwards from earlier years (section 111) are allowed in full.
- The stock option deduction and similar deductions count to the extent they relate to income on the return.
- Other deductions count when they can reasonably be considered to apply to the resident period.
A deduction tied to foreign income you do not report after departure has nothing to offset. Foreign tax paid on foreign income you report for the resident period is claimed as a foreign tax credit on line 40500 through Form T2209 (CRA: line 40500). Unused tuition, losses and RRSP room are covered in unused credits and losses when leaving Canada; RRSP and TFSA contributions after you leave in contributing to an RRSP or TFSA after leaving.
Which tax credits are prorated by days, and which count only for the resident period?
Personal amounts are prorated by the days you were resident: the basic personal amount, the age amount and the spouse amount. Credits tied to what you paid or earned, such as tuition, medical expenses and donations, are claimed in full, but only for amounts that belong to the resident period (s. 118.91; CRA: credits for emigrants).
| Federal credit | How it works in the year you leave |
|---|---|
| Basic personal amount (line 30000) | Maximum of $16,452 × days resident ÷ days in the year |
| Age amount (line 30100) | Maximum and income threshold both prorated by days |
| Spouse or common-law partner amount (line 30300) | Prorated maximum, minus the partner's net income for the same period |
| Disability amount, transfers from a spouse or dependant | Prorated to the resident period (s. 118.91(b)(ii)); your own disability amount also counts for the non-resident period if you report Canadian income then |
| CPP or QPP contributions, EI premiums | Amounts paid on income on the return, before and after departure |
| Canada employment amount, pension income amount | Resident-period amounts; non-resident period too if the 90% test below is met |
| Tuition, student loan interest | Resident-period amounts; non-resident period too if you report Canadian income then (below) |
| Medical expenses | Resident-period amounts only, unless the income test below is met |
| Donations and gifts | Resident-period amounts; non-resident period too if you report Canadian income then (below) |
| Home buyers', home accessibility, adoption | Resident-period amounts; non-resident period too if the 90% test below is met |
If you meet the test below, personal amounts are not limited to the days-resident share, but no credit can exceed what you could claim had you been resident all year. The common mistake is claiming the full basic personal amount. On a spouse who did not leave with you, see a non-resident spouse on a Canadian return.
When can you claim credits for the months after you left?
For the non-resident part of the year, you can claim the remaining federal credits in full only if the Canadian-source income you report for that part is 90% or more of your net world income for that part (CRA: credits for emigrants).
Below that level, the non-resident part allows only a short list, and only if you report Canadian income for it: CPP or QPP contributions, EI premiums, the disability amount for yourself, student loan interest, tuition, and donations and gifts.
To claim under the test, the CRA needs your net world income for the non-resident part, in Canadian dollars, with Canadian and foreign income shown separately. On paper, attach a note; the CRA says it cannot allow the full credits without it. A foreign salary after departure usually keeps Canadian income below the test.
Which provincial and refundable credits do you lose by not being resident on December 31?
Form 479 provincial and territorial credits generally need you to be resident on December 31, so an emigrant usually loses them. Provincial non-refundable credits on Form 428 may also be limited (CRA: Leaving Canada).
| Credit | In the year you leave |
|---|---|
| Form 479 provincial or territorial credits | Generally not available |
| Canada workers benefit | Requires residence throughout the year (s. 122.7) |
| Refundable medical expense supplement | Requires residence throughout the year (s. 122.51) |
| Eligible educator school supply credit | Resident period; non-resident period only if the 90% test above is met |
| Canada child benefit, Canada Groceries and Essentials Benefit | Generally stop for you after you leave; a spouse who stays with the children may still qualify: see benefits after leaving Canada |
Can you deduct moving costs for a move out of Canada?
Generally no. The CRA says moving expenses for a move out of Canada are not deductible, except for a student who left to study full time at a post-secondary institution abroad and received a taxable Canadian scholarship, bursary, fellowship or research grant (CRA: Leaving Canada).
What if CPP or EI was overpaid in the year you leave?
Excess CPP is refunded through line 44800, after completing Schedule 8 or Form RC381; excess EI premiums go on line 45000. Overpayments often happen when two employers each deduct as if they were your only employer (CRA: Employers' Guide; CRA: line 44800; CRA: line 45000).
If you lived in Québec before you left, the excess is worked out on Form RC381 and claimed with code 55520 above line 43700, not on line 44800 (CRA: Leaving Canada); see leaving Québec. The CPP and EI credits themselves count only on contributions for income on the return.
Example
These examples are illustrative and use Canadian dollars.
Leaves on 30 September for a job abroad
You earn C$90,000 salary in Canada to 30 September, then a foreign salary. Your return reports the C$90,000 and your resident-period interest, but not the foreign salary. Your basic personal amount is C$16,452 × 273 / 365, about C$12,305 (273 days resident, January 1 to September 30). A tuition carryforward reduces the tax on your resident-period income. Canadian income after departure is nil, so there are no credits for October to December.
Leaves on 31 March and rents out the condo
You leave on 31 March and rent your condo for C$2,000 a month. Your tenant or agent withholds 25% of the gross rent, C$500 a month; a section 216 return filed after the year can tax net rent instead and refund the excess, and an approved Form NR6 lets the agent withhold on net rent during the year. The rent is not on the departure return. Turning your home into a rental is a change in use with its own election: see keep or sell your home when leaving Canada. You report no Canadian income for the months after you leave, so only resident-period credits apply, with personal amounts prorated by days.
Two employers both deducted full CPP
You changed jobs in May and left Canada in August. Each employer deducted CPP without counting the other, so the total exceeds the yearly maximum. You work out the excess on Schedule 8 and claim it on line 44800.
Different for you?
- Canadian work, business or a property sale after your departure date, or you want the full credits under the income test: get individual tax help before you file.
- You left in an earlier year and never filed, or the CRA still treats you as resident: see the CRA still thinks you are a resident and get individual tax help.
- Your spouse stayed, left first, or never lived in Canada: see spouses leaving on different dates and a non-resident spouse on a Canadian return, and get individual tax help.
- You ran a business as a sole proprietor: see closing a sole proprietorship when leaving Canada and get individual tax help.
- You rented out your home when you left: see home turned rental.
- You lived in Québec: see leaving Québec and get individual tax help.
- You own shares, investments or property abroad: see the departure tax example.
- You are unsure of your departure date: see the date you become a non-resident.
- Pension or RRSP income after you left: see section 217 returns.
- The full departure checklist: see leaving Canada.
Figures on this page
| Figure | Value | Source |
|---|---|---|
| General Canadian personal return filing and balance payment date General date after the tax year; the next business day may apply for a weekend or recognized holiday, and some returns have different filing dates | April 30 | CRA: Due dates and payment dates Checked |
| General Canadian self-employed return filing date General filing date after the tax year when the taxpayer or spouse is self-employed; a balance remains due April 30 and exceptions can apply | June 15 | CRA: Due dates and payment dates Checked |
| Fair market value threshold for Form T1161 Total fair market value of reportable property owned on departure; the form is required above this amount | $25,000 | CRA: Dispositions of property for emigrants of Canada Checked |
| Federal buyer holdback without a certificate for capital property Applied to the amount by which the purchase price exceeds any certificate limit, for property subject to subsection 116(5) | 25% | Income Tax Act, subsection 116(5) Checked |
| Federal buyer holdback without a certificate for depreciable property Applied to the amount by which the purchase price exceeds any certificate limit, for property subject to subsection 116(5.3) | 50% | CRA: Section 116 procedures, paragraph 51 Checked |
| Part XIII withholding rate on Canadian rent paid to a non-resident General rate on gross Canadian real-property rent; a treaty may change the rate, and CRA-approved Form NR6 can change the withholding base to net rent | 25% | CRA: T4144, Income Tax Guide for Electing Under Section 216 Checked |
| Maximum federal basic personal amount Federal basic personal amount for income below the phase-out range | $16,452 Tax year 2026 | Department of Finance: Federal non-refundable tax credits Checked |
| Emigrant: Canadian-source income share of net world income after departure for full federal credits Canadian-source income reported for the non-resident part of the departure year, as a share of net world income for that part; at or above it, the remaining federal non-refundable credits can be claimed in full | 90% | CRA: Federal non-refundable tax credits for newcomers and emigrants Checked |
Primary sources
- CRA: Leaving Canada (emigrants)
- CRA: Federal non-refundable tax credits for newcomers and emigrants
- CRA: Non-residents of Canada
- Income Tax Act, section 114
- Income Tax Act, section 118.91
- Income Tax Act, section 122.7
- Income Tax Act, section 122.51
- CRA: Line 44800 – CPP overpayment
- CRA: Line 45000 – Employment insurance overpayment
About this guide
Published by Cloud Accounting under standing professional approval. This version has no separately recorded personal review. It explains general rules for the tax year shown. It is not advice for your situation.
Changes
- : First published.