How to File Taxes When You Moved to Canada Mid-Year: Split-Year Residency
Last updated: 2026-03-16 | CRA Reference: Income Tax Folio S5-F1-C1; T4055 - Newcomers to Canada
What Is Split-Year Residency?
Split-year residency describes the tax situation of someone who was a non-resident for part of the year and a Canadian tax resident for the remainder. This is the standard filing scenario for most newcomers in their first year. You file a single T1 return covering the full calendar year, but your income reporting obligations and credit eligibility depend entirely on your residency dates.
How CRA Determines Your Residency Start Date
CRA uses a residential ties test, not simply your immigration status.
Primary ties (highest weight) include: a home available for use in Canada, a spouse or common-law partner in Canada, and dependants in Canada.
Secondary ties include: a Canadian driver's license, health card, bank account, and personal property.
Your residency start date is typically the earliest date on which you established sufficient ties — commonly your arrival date if you moved into a home with family.
Tie Type | Weight | Examples |
Primary | High | Home in Canada, spouse or partner, dependants |
Secondary | Moderate | Bank account, driver's licence, health card |
Tertiary | Low | Seasonal property, professional memberships |
How to Report Income on a Split-Year Return
Pre-arrival income (non-resident period)
Generally not taxable in Canada. Disclose on Schedule A (Statement of World Income) if you do not meet the 90% rule — this income counts toward the 90% denominator.
Post-arrival income (resident period)
Fully taxable in Canada from all worldwide sources from your residency start date forward. Report each income type on its corresponding T1 line — see How to report your full foreign income.
Worked Example:
Sofia arrived in Canada on September 1, 2025. In 2025, she earned:
Jan–Aug (non-resident): $30,000 foreign employment income
Sep–Dec (Canadian resident): $22,000 Canadian employment + $1,000 foreign interest
T1 reporting: $22,000 on Line 10100; $1,000 on Line 12100; Schedule A shows $30,000 pre-arrival.
90% test: $22,000 ÷ $23,000 = 95.7% ✅ — Sofia qualifies for full personal credits.
Prorated vs Full Credits
When the 90% rule is met, the Basic Personal Amount is received in full — it is not prorated. However, credits based on actual expenditures (medical expenses, charitable donations) are only claimable for amounts paid after your arrival date — this includes the Medical Expense Tax Credit and Charitable Donations. Keep all receipts with clear dates, and convert foreign receipts to CAD at the Bank of Canada rate on the date of payment.
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