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🇨🇦 2026 CRA Form NR73 Residency Determination Framework

CRA Form NR73 Determination of Residency Guide 2026

Understand how CRA evaluates Canadian tax residency after leaving Canada, what Form NR73 does, how residential ties and tax treaties are considered, and why an NR73 opinion is not the same as a binding ruling.

1. What Is CRA Form NR73?

Form NR73, Determination of Residency Status (Leaving Canada), is used by individuals who have left or are planning to leave Canada and want CRA's opinion about their Canadian income-tax residency status. Filing the form is voluntary. CRA reviews the facts provided and gives an opinion about the person's residency status.

Key Framework Highlights:
  • NR73 is a voluntary form; CRA does not require every person leaving Canada to submit it.
  • The form is used to request CRA's opinion on whether the individual is a resident, non-resident, factual resident or otherwise subject to the applicable residency rules.
  • CRA considers the relevant facts, including residential ties with Canada, ties abroad, length of stay, purpose, intention and continuity.
  • An NR73 opinion is not binding on CRA and can be subject to a more detailed review later.
  • A binding advance income tax ruling is a separate process and is not what NR73 provides.
  • Tax residency is determined under Canada's income-tax rules and, where relevant, an applicable tax treaty; it is not determined solely by citizenship or immigration status.
Action Checklist:
  • Determine whether you need CRA assistance with the residency question.
  • Collect accurate information about your Canadian ties and ties abroad.
  • Review the relevant tax treaty if you may be resident in both countries.
  • Complete NR73 truthfully and completely.
  • Send the form using CRA's prescribed submission route.
  • Retain a copy of the completed form and supporting evidence.

2. How CRA Determines Canadian Tax Residency

Canadian tax residency is a factual determination. CRA considers the full circumstances rather than applying a simple points system. Important considerations include residential ties with Canada, ties outside Canada, the length, purpose and continuity of stays in Canada and abroad, and applicable treaty rules.

FactorHow It Can Matter
Residential ties with CanadaStrong personal and residential connections can support continued Canadian residency
Residential ties outside CanadaEstablishing a permanent home and significant ties abroad can support non-resident status
Length of time in Canada and abroadDuration and pattern of presence are considered together with the other facts
Purpose of the move or stayThe purpose and nature of the move or absence can be relevant
IntentionThe taxpayer's intention is one factual consideration among many; conduct and objective circumstances also matter
Continuity of lifeCRA looks at the settled pattern of where and how the individual lives
Tax treatyWhen the person is resident under domestic rules of both countries, the applicable treaty may determine treaty residency

3. Significant Residential Ties with Canada

CRA identifies a home in Canada, a spouse or common-law partner in Canada, and dependants in Canada as significant residential ties. The original page called these 'three primary ties,' but CRA's current terminology emphasizes significant residential ties rather than a formal three-tier scoring system.

Significant TieExamples / CRA Treatment
Home in CanadaA dwelling place in Canada that remains a residential base can be highly relevant
Spouse or common-law partner in CanadaA spouse or common-law partner remaining in Canada is an important residential fact
Dependants in CanadaDependants remaining in Canada can be a significant residential connection

4. Secondary Residential Ties

CRA also considers a range of personal, social and economic connections with Canada. These are relevant facts rather than fixed automatic triggers.

Secondary TieExamples
Personal propertyCar, furniture and other personal property kept in Canada
Social tiesMemberships in Canadian recreational, social, religious or other organizations
Economic tiesCanadian bank accounts, credit cards or other financial relationships
IdentificationCanadian driver's licence or Canadian passport
Health coverageHealth insurance with a Canadian province or territory
Other Canadian connectionsFacts relevant to the person's settled pattern of life and ongoing relationship with Canada

5. Ties Abroad Matter Too

A residency analysis is not solely an inventory of Canadian ties. CRA also considers the person's relationship with the country to which they moved and whether they established a permanent or settled residential base there.

Action Checklist:
  • Foreign home or long-term housing arrangement
  • Foreign spouse/common-law partner or dependants
  • Foreign employment or business
  • Foreign health coverage and social connections
  • Foreign driver's licence and government registration
  • Foreign bank and investment relationships
  • Foreign immigration or residency status
  • Pattern and continuity of living outside Canada

6. NR73 Is Voluntary — You Do Not Automatically Need It to Become a Non-Resident

Canada uses a self-assessment income-tax system. An individual determines their residency status based on the applicable law and facts and reports that status on the appropriate return. CRA's current residency guidance offers NR73 as a way to obtain CRA's opinion when the person wants assistance determining the status.

7. Is Filing NR73 Risky?

Filing NR73 gives CRA detailed information about the taxpayer's residency facts and can result in CRA asking for additional information later. However, CRA's official material does not support the blanket claim that filing NR73 automatically triggers an audit or that CRA routinely rejects non-residency whenever any secondary tie remains.

Potential AdvantagePotential Consideration
CRA opinionProvides a written CRA view based on the submitted facts
Record of the analysisCreates a documented description of the taxpayer's residency circumstances
Later reviewCRA's opinion is not binding and can be revisited in a more detailed review
Detailed disclosureThe taxpayer should be prepared to provide accurate information about Canadian and foreign ties
Uncertain factual caseAn NR73 request can expose unresolved Canadian ties that should be addressed before relying on non-resident status

8. CRA Opinion vs Binding Advance Tax Ruling

There is an important legal distinction between the CRA opinion resulting from NR73 and a binding advance income tax ruling.

FeatureNR73 OpinionBinding Advance Ruling
PurposeCRA opinion on the person's residency status based on submitted factsBinding ruling on the tax consequences of proposed transactions or arrangements where the ruling requirements are met
Binding on CRA?NoYes, subject to the conditions and scope of the ruling
Who handles it?CRA's International Tax and Non-Resident areaIncome Tax Rulings Directorate
TimingCan be requested after or in anticipation of leaving CanadaGenerally appropriate where the facts of the proposed transaction can be ascertained in advance

9. Tax Treaty and Deemed Non-Resident Rules

A person can be a factual resident of Canada under Canadian domestic law and also be considered resident of another country under that country's domestic law. When Canada has a tax treaty with that country, treaty tie-breaker rules can make the person a deemed non-resident of Canada.

10. When Do You Actually Become a Canadian Non-Resident?

CRA's current guidance says that when a person leaves Canada to settle in another country, the date of non-residence is generally the latest of the date the person leaves Canada, the date their spouse/common-law partner and dependants leave Canada, and the date they become resident of the country in which they settle. Special facts can produce different results.

Departure SituationGeneral CRA Treatment
Permanent move with family and foreign residence established immediatelyOften non-resident from the departure date
Spouse/common-law partner remains in CanadaDeparture date can be affected by the remaining spouse/partner tie and applicable facts
You leave but do not immediately become resident of another countryThe date can depend on when foreign residence is established and the full facts
Treaty-country residence established while Canadian ties remainTreaty may produce deemed non-resident status

11. Form NR73: Information and Submission

CRA's current Form NR73 is a fillable PDF that individuals download and complete when seeking a residency determination. CRA's forms page identifies the form as Determination of Residency Status (leaving Canada).

12. Evidence to Keep for an NR73 Residency Position

CRA's residency determination depends heavily on the facts supplied. Good records make it easier to support the stated departure circumstances if the CRA later reviews the position.

Action Checklist:
  • Canadian home sale, lease termination or evidence of change in availability
  • Foreign home purchase or long-term lease
  • Foreign residence permit, visa or immigration status
  • Employment contract or foreign business records
  • Travel and movement records showing dates in and out of Canada
  • Canadian and foreign family-residence information
  • Provincial health coverage cancellation or status
  • Canadian and foreign driver's licence records
  • Banking and investment information relevant to the residential analysis
  • Memberships and other social-tie information
  • The completed NR73 and CRA response
  • Tax returns and departure-return documentation

13. Provincial Health Insurance, Driver's Licence and Canadian Accounts

Provincial health insurance, a Canadian driver's licence, Canadian vehicle registration and Canadian financial accounts can be relevant to the residency analysis. CRA does not say that every person must cancel every such item immediately or that keeping one automatically preserves Canadian residency.

TieCorrect Treatment
Provincial health coverageCan be relevant to residency; provincial eligibility/cancellation rules are separate from federal tax residency
Canadian driver's licenceCan be a secondary residential tie
Canadian vehicleCan be a personal-property tie
Canadian bank accountCan be an economic tie, but maintaining an account does not automatically make the person resident
Canadian credit cardCan be relevant as an economic tie
Canadian passportCRA lists it among possible secondary ties

14. NR73, Departure Return and Departure Tax Are Separate Issues

Form NR73 concerns residency status. It does not itself calculate the departure tax, determine the deemed disposition, or replace the departure-year tax return.

15. Practical 2026 Decision Framework: Should You File NR73?

There is no universal answer. The decision depends on how clear the residency facts are, whether a treaty is involved, the tax amounts at stake and whether the taxpayer wants CRA's written non-binding opinion.

SituationNR73 May Be UsefulWhy
Permanent move with obvious severance and strong foreign tiesPossibly less necessaryThe taxpayer may be able to self-assess clearly under the residency rules
Canadian home retained and spouse remains in CanadaOften worth professional review before filingSignificant Canadian ties can make the residency question factually complex
Dual-country residencyOften usefulTreaty residence and domestic residence need to be analyzed together
Large departure-tax exposureConsider carefullyResidency date can materially affect the tax result
Need for binding certaintyNR73 alone is insufficientA separate advance-ruling process may be required where available

16. Complete 2026 NR73 Roadmap

Use this process when preparing an NR73 request or evaluating whether one is appropriate.

17. Common NR73 and Residency Mistakes

The most dangerous mistakes are treating residency as a points-based checklist or treating the NR73 opinion as a binding certificate.

Action Checklist:
  • Calling NR73 a mandatory form for everyone leaving Canada
  • Calling the CRA NR73 response a binding tax ruling
  • Using 'three primary ties' as a rigid scoring system
  • Assigning official CRA weightings such as critical, moderate or low to individual ties
  • Claiming that one Canadian bank account automatically preserves residency
  • Claiming that one secondary tie automatically prevents non-residency
  • Saying filing NR73 automatically triggers an audit
  • Saying CRA routinely denies non-residency whenever secondary ties remain
  • Ignoring residential ties abroad
  • Ignoring tax-treaty tie-breaker rules
  • Using 183 days outside Canada as an automatic non-residency test
  • Assuming citizenship determines tax residency
  • Assuming immigration status determines tax residency
  • Waiting for an NR73 response before filing the departure return
  • Using an unsupported 2–4 month CRA processing guarantee
  • Failing to distinguish NR73 from the separate advance-ruling process

Frequently Asked Questions

No. NR73 is a voluntary request for CRA's opinion about your Canadian tax residency status. You can self-assess your residency under the applicable rules and complete the appropriate departure-year return without first obtaining an NR73 response.

CRA identifies a home in Canada, a spouse or common-law partner in Canada, and dependants in Canada as significant residential ties. CRA also considers many other personal, social and economic ties and the overall facts of the move.

No. CRA says the NR73 opinion is based on the facts provided by the taxpayer, is not binding on CRA and can be subject to a more detailed review later. A binding advance income tax ruling is a separate process.

Not automatically. CRA treats Canadian bank accounts, credit cards and a Canadian driver's licence as possible secondary residential ties. Their significance depends on the full factual picture, including your Canadian and foreign residential ties.

CRA's published guidance does not say that filing NR73 automatically triggers an audit. CRA does state that its opinion may later be subject to a more detailed review and supporting documentation may be requested.

CRA's current NR73 materials do not publish a guaranteed 2-to-4-month processing standard. Processing can depend on the facts and complexity of the case, so a fixed turnaround time should not be relied on.

2026 NR73 Key Metrics

  • Filing Status
    Voluntary request for CRA's residency opinion
  • CRA Result
    Opinion based on facts supplied on NR73
  • Significant Ties
    Home, spouse/common-law partner and dependants
  • Binding Ruling
    NR73 is not a binding advance ruling

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