Working in Multiple Provinces 2025

More Canadians than ever are working across provincial borders—whether remotely, on contracts, or through corporate relocations. Yet every year, thousands face unexpected CRA reassessments, double taxation, or missed refunds because they file their returns incorrectly. In 2025, with the CRA and Revenu Québec electronically cross-matching income slips, employer addresses, and residential data, even a small inconsistency in your filing can cause major tax complications.

Your province of residence on December 31 determines where you pay taxes—but employment, business, and property income may also trigger obligations in other provinces. Without proper coordination, you could end up paying more tax than necessary or lose credits you’re entitled to. For Quebec residents, dual filings with both the CRA and Revenu Québec make this process even more complex.

At Mackisen CPA Auditors Montreal, we help employees, contractors, and business owners working in multiple provinces file correctly, minimize taxes, and stay fully compliant. Our audit-grade approach ensures every income source is properly allocated, all credits are claimed, and no overpayment goes unnoticed.

Legal and Regulatory Framework

Income Tax Act (Canada)
Section 2(1): Requires residents to report worldwide income, including interprovincial sources.
Section 120: Defines how provincial tax is calculated based on residence at year-end.
Section 150: Sets filing obligations for individuals with multi-jurisdictional income.
Section 118: Outlines available non-refundable credits, which vary by province.

Tax Administration Act (Quebec)
Mandates separate provincial returns for Quebec residents and establishes specific filing obligations for interprovincial workers or corporations operating in Quebec.

Mackisen works with clients to ensure their federal and provincial filings align perfectly. We reconcile T4, T4A, and RL-1 slips, confirm correct residency designation, and eliminate duplication or missed credits.

Key Court Decisions

Venne v. The Queen (1984): Residency and province of taxation determined by factual ties, not just mailing address.
Guindon v. Canada (2015): Filing errors and omissions, even unintentional, can lead to enforceable CRA penalties.
Jordan v. The Queen (2009): Interest accrues automatically on unpaid tax arising from incorrect provincial allocation.

These precedents confirm that accurate provincial reporting is essential to avoid penalties and preserve refunds.

Why Multi-Province Tax Filing Matters

Canada’s tax system is decentralized—meaning each province sets its own tax rates, credits, and rules. When you work in one province but live in another, your employer may deduct the wrong provincial tax, leading to either overpayment or a surprise balance due.

Common CRA Issues in 2025:

• Incorrect province of residence reported on T4 slips.

• Employers withholding taxes for the wrong province.

• Dual residency confusion for Quebec/non-Quebec workers.

• Missed provincial credits (Solidarity Credit, Ontario Trillium Benefit, BC Climate Action Credit).

• Incomplete Revenu Québec filing for Quebec residents earning outside the province.

CRA and Revenu Québec now share payroll data in real time. Any mismatch between reported income and provincial filings is automatically flagged for review.

Mackisen’s Multi-Province Filing and Compliance Strategy

1. Residency Confirmation: Determine your legal province of residence based on CRA and Revenu Québec criteria.

2. Income Allocation: Reconcile income from all provinces and apply the correct tax rates.

3. Employer Verification: Ensure payroll deductions match your province of residence.

4. Dual Jurisdiction Filing: File and coordinate both CRA and Revenu Québec returns seamlessly.

5. Tax Credit Optimization: Maximize provincial benefits and cross-border deductions.

Our precise process ensures your taxes are compliant, optimized, and audit-proof—no matter how many provinces you’ve worked in.

Real Client Experience

A Montreal professional working remotely for an Alberta company was double-taxed due to incorrect payroll deductions. Mackisen filed an adjustment and secured a $6,800 refund.
A construction worker employed in Ontario but living in Quebec faced CRA reassessment for incorrect provincial allocation. Mackisen corrected both returns, aligned credits, and resolved the issue within four weeks.

Common Questions

Which province do I pay taxes in if I moved during the year? The province where you reside on December 31. Mackisen confirms and files accordingly.
Can I claim credits from both provinces? No, but we ensure you receive the maximum available based on your residency and work history.
Do remote workers face unique rules? Yes. Income tax is based on your physical work location and residency—Mackisen calculates the correct split.
What if my employer deducted the wrong province’s tax? We file an adjustment with CRA and Revenu Québec to recover the overpayment.

Why Mackisen

Mackisen CPA Auditors Montreal understands interprovincial tax complexity better than anyone. Whether you commute, work remotely, or operate across provinces, our experts ensure your income is filed correctly and your taxes are minimized.

We combine technical accuracy with personal attention—because your financial well-being shouldn’t depend on bureaucracy. With Mackisen, you get more than a tax return—you get clarity, compliance, and confidence.

Call Mackisen CPA Auditors Montreal today for your 2025 Multi-Province Tax Review. The first consultation is free, and your protection starts immediately.