Taxes for International Students Studying in Canada — Montreal CPA Firm Near You: Residency, Filing Rules, Credits, and CRA Obligations

International students studying in Canada face one of the most misunderstood areas of Canadian taxation: residency status. Your residency for tax purposes does not depend on your study permit, citizenship, immigration status, or whether you work while studying. Instead, it depends on the residential ties you establish in Canada and the number of days you stay in the country.

Your residency status determines:

• Whether you must file a tax return

• Whether you report worldwide income or only Canadian income

• Whether you qualify for tax credits, benefits, and refunds

• Whether you pay tax as a resident, non-resident, deemed resident, or deemed non-resident

This guide explains residency categories for international students, their tax obligations, how the 183-day rule applies, when treaty rules override Canadian residency, and how to determine which filing package you should use.

1. Residency Status for International Students

International students in Canada can fall into four different tax residency categories:

• Resident

• Non-resident

• Deemed resident

• Deemed non-resident

Your status depends entirely on your residential ties, not on your study permit.

Significant Residential Ties

You may be considered a resident of Canada if you have major ties, such as:

• A home or apartment in Canada (owned or rented)

• A spouse or common-law partner living in Canada

• Dependants (children) living in Canada

Secondary Ties (supportive, but not decisive on their own)

Important secondary ties include:

• Personal property (car, furniture)

• Social ties (Canadian memberships, organizations)

• Economic ties (Canadian bank accounts, credit cards)

• Canadian driver’s licence

• Canadian passport

• Provincial or territorial health insurance

The more of these ties you accumulate, the more likely you are to be considered a resident for tax purposes.

2. How to Determine Your Residency Status

Here is the simplified way to analyze residency for international students:

A. Resident of Canada

You are a resident if you establish significant residential ties with Canada.

This may occur if:

• You live in Canada most of the year

• You rent or own a Canadian home

• You bring your spouse/partner or dependants to Canada

• You start working or build social and economic ties

Many long-term or full-time graduate students fall into this category.

B. Non-Resident

You are likely a non-resident if:

• You do not establish significant residential ties, and

• You stay in Canada less than 183 days in the year

For example:

• A student who comes to Canada for a short certificate program

• A student who returns to their home country for long periods

C. Deemed Resident

You may be a deemed resident if:

• You stay in Canada 183 days or more in a calendar year, and

• You do not have significant residential ties, and

• You are not considered a resident of your home country under a tax treaty

This is common for students from non-treaty countries or countries where tie-breaker rules assign residency to Canada.

D. Deemed Non-Resident

You are a deemed non-resident if:

• You establish significant ties with Canada, but

• Under a tax treaty, you are considered a resident of your home country

In this case:

• You are taxed like a non-resident of Canada

• Treaty “tie-breaker rules” override Canadian domestic rules

This often applies to students from treaty countries who maintain a stronger residential connection to their home country.

Get an Official CRA Opinion

You may request an official residency ruling by submitting:

• Form NR74 — Determination of Residency Status (Entering Canada)

The CRA will provide a written determination based on your circumstances.

3. Your Tax Obligations as an International Student

Your residency status determines which tax rules you must follow:

Resident or Part-Year Resident

You must:

• Report worldwide income for the period you are a resident

• Claim deductions and credits available to residents

• File the T1 General Income Tax Return

• Follow the requirements for newcomers to Canada if you entered during the year

Residents often qualify for:

• GST/HST credit

• Tuition tax credits

• Medical expense credits

• Refunds if too much tax was withheld

Non-Resident

You must:

• Report ONLY Canadian-source income

• Follow the non-resident filing rules

• Use the Non-Residents and Deemed Residents tax package if required

Examples of income non-residents must report:

• Canadian employment income

• Scholarships (in certain cases)

• Canadian research grants

• Some types of Canadian investment income

Deemed Resident

If you are a deemed resident:

• You report worldwide income

• Pay federal tax plus a federal surtax, not provincial tax

• Use the Non-Residents and Deemed Residents tax package

• Are eligible for the GST/HST credit

Deemed Non-Resident

If you are a deemed non-resident:

• The rules for non-residents apply

• You report only Canadian-source income

• You are generally not eligible for GST/HST credit or CCB

4. Examples to Understand Residency Status for Students

Example A — Resident

Maria is pursuing a 3-year PhD. She rents an apartment, has a Canadian bank account, gets provincial health coverage, and stays year-round.

→ Maria is a resident of Canada for tax purposes.

Example B — Non-Resident

Kumar is in Canada for a 4-month English course. He lives in temporary housing and returns to India for long periods.

→ Kumar is a non-resident.

Example C — Deemed Resident

Aisha stays in Canada 235 days of the year but maintains minimal ties. Her home country has no tax treaty with Canada.

→ Aisha is a deemed resident and must report worldwide income.

Example D — Deemed Non-Resident

Lucas comes from a country with a treaty, maintains strong ties back home, but stays in Canada 200 days.

→ Lucas is a deemed non-resident and taxed like a non-resident.

5. Filing Requirements for International Students

Follow the correct rules based on your residency category:

If you became a resident during the year:

→ Follow newcomer to Canada rules
→ File a part-year return reporting worldwide income from the date you became a resident

If you are a non-resident:

→ Follow non-resident rules
→ Report only Canadian-source income

If you are a deemed resident:

→ Follow deemed resident rules
→ Report worldwide income
→ Use the Non-Residents and Deemed Residents package

If you are a deemed non-resident:

→ Follow non-resident procedures

If you are unsure, Mackisen can determine the correct residency classification based on:

• Ties

• Immigration documents

• Presence in Canada

• Treaty country analysis

• Your long-term intentions

Why Mackisen

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps international students understand their Canadian tax residency and comply with filing rules. We assist with:

• Determining if you are a resident, non-resident, deemed resident, or deemed non-resident

• Filing your first Canadian tax return as a newcomer

• Correctly claiming tuition credits, medical credits, and refunds

• Understanding GST/HST credit eligibility

• Reporting scholarships, research grants, or teaching assistant income

• Avoiding double taxation with your home country

• Filing returns for students who worked while studying (T4 income, CPP/EI eligibility)

If you are an international student unsure of your residency status or tax filing requirements, Mackisen can analyze your situation, prepare your return, and ensure you take advantage of every credit available while remaining fully compliant with the CRA.