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I left Canada in Jan, 2026 and I am non-tax resident from Feb, 2026 for Canada. I will need to report Canadian sourced income from Feb to Dec 2026 as non tax resident. Knowing I need to file my final return for 2026 with a departure date, do I report the non-tax resident income on the final return of 2026. I am a tax resident just for Jan, 2026. Should I mix both tax resident income and non tax resident income? Do I report the departure tax in my final tax return as well.
If Financial institution does not withhold tax, what is the way to repay the withholding tax to cra?
Hi Puzzle,
Yes, your 2026 Canadian tax return would generally be filed as a departure return, showing your date of departure from Canada. On this return, you would report your worldwide income earned up to the date you became a non-resident of Canada.
After your departure date, you are generally taxed in Canada only on certain Canadian-source income, such as Canadian rental income, pension income, dividends, or certain employment/business income connected to Canada. This income is not simply “mixed” with your pre-departure worldwide income in the same way. It must be reported according to the applicable non-resident rules.
For example:
- Canadian employment income earned before departure is reported on your departure return.
- Canadian-source income earned after departure may be subject to non-resident withholding tax.
- Canadian rental income after departure may require NR6/NR4 reporting and possibly a Section 216 return.
- Canadian dividends, pensions, RRSP/RRIF withdrawals, and similar payments are generally subject to Part XIII withholding tax.
- Capital gains on certain taxable Canadian property may require separate reporting.
Departure tax is also reported on your final Canadian departure return. This applies to certain assets you are deemed to have disposed of when you leave Canada, such as non-registered investment portfolios, shares of private corporations, and other taxable capital property. Some assets are excluded, such as Canadian real estate, RRSPs, TFSAs, and cash.
If a Canadian financial institution failed to withhold the required non-resident tax after your departure, you should contact the institution and update your residency status immediately. In some cases, the payer may need to correct the withholding and issue the appropriate non-resident reporting slip. If tax remains unpaid, the CRA may assess the amount owing, and professional advice should be obtained to determine the correct reporting method.
Because departure tax and post-departure Canadian-source income can be quite technical, I recommend speaking with a cross-border tax accountant before filing your 2026 return.
Best regards,