Canada ITN: The Individual Tax Number for Non-Residents

An individual tax number (ITN) is a nine-digit identifier the Canada Revenue Agency issues to non-residents who must file a Canadian return or make a Canadian tax filing but cannot get a social insurance number. U.S. residents selling Canadian real estate and non-residents with Canadian rental or employment income are the typical applicants. The application is Form T1261.

On this page

1. Who needs an ITN?
2. How do you apply?
3. ITN, SIN, and ITIN — three numbers
4. The real estate case
5. Worked example
6. Frequently asked questions
7. Related guides
8. Official sources
9. Next step

Who needs an ITN?

Anyone who must interact with the Canadian tax system without a SIN. The common cases:

A person eligible for a SIN — a Canadian citizen, a permanent resident, or a temporary resident with a work or study permit — gets a SIN instead and cannot get an ITN. A former Canadian resident who left with a SIN keeps it; the SIN remains their tax number as a non-resident (it does not expire for tax purposes, though a SIN beginning with 9 has an expiry tied to the permit).

How do you apply?

Form T1261, Application for a Canada Revenue Agency Individual Tax Number (ITN) for Non-Residents, mailed to the ITN unit at the Sudbury Tax Centre with: the reason for the application (the form lists the categories — filing a return, the section 116 certificate, and so on); and a certified or notarized copy of a current identity document showing name, date of birth, and photograph — a passport or driver's licence, for instance — or the original (returned by mail). The CRA asks for the application to be sent separately and ahead of the filing it supports. Processing takes 6 to 8 weeks after the CRA receives it; the number arrives by letter, and it is then used on every subsequent Canadian filing.

ITN, SIN, and ITIN — three numbers

A Canadian moving to the United States often needs both a U.S. ITIN (if not eligible for a social security number — for example, a spouse without work authorization) and keeps the Canadian SIN. A U.S. resident buying a Canadian rental property needs a Canadian ITN and already has a U.S. SSN. The ITIN cost guide covers the U.S. side.

The real estate case

The ITN's most time-sensitive use. A non-resident selling Canadian real property must notify the CRA within ten days of the sale (Form T2062) and obtain a certificate of compliance, or the buyer withholds 25 percent of the gross purchase price (50 percent for depreciable property such as a rental building). The T2062 requires a Canadian tax number, and a U.S. resident who never had a SIN needs an ITN before the sale closes — an application filed on the day of the offer is often too late. Sellers apply for the ITN when they list the property, and the section 116 process (the certificate, the withholding on the gain rather than the price, the final return the following spring) then runs on schedule.

Worked example

A retired couple in Arizona inherited a Muskoka cottage from a Canadian aunt in 2019 and decide to sell it in 2027. Neither has ever had a SIN. In March, when they list, each files Form T1261 with a notarized copy of their passport, checking the box for the section 116 certificate application; the ITNs arrive in May. The cottage sells in July for C$900,000 (cost base C$620,000 at the aunt's death): the T2062 goes in within ten days, the CRA issues the certificate on payment of 25 percent of the C$280,000 gain (C$70,000), and the buyer's lawyer releases the rest of the proceeds. The following spring they file Canadian non-resident returns under their ITNs reporting the gain, recover part of the C$70,000 (the actual tax at graduated rates is lower), and claim the Canadian tax as a foreign tax credit on their U.S. return, where the gain is also taxable. Their neighbours in the same position, who applied for ITNs the week of closing: the buyer withheld 25 percent of the C$900,000 price — C$225,000 — held until the certificate finally issued months later.

Frequently asked questions

Official sources

The CRA states: “An ITN is a 9-digit number issued to non-resident individuals who need an identification number. The ITN is for people who are not eligible for a social insurance number (SIN) and are considered a non-resident for tax purposes.” — Canada Revenue Agency, Applying for an individual tax number (ITN), https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents-tax/in-outside-canada/apply-individual-tax-number.html

Next step

Fairlight Accounting is a cross-border accounting and tax practice with a U.S. Tax Desk and a Canadian Tax Desk. Our Canadian Tax Desk handles ITN applications for U.S. residents with Canadian property or income, section 116 certificates of compliance, section 216 and 217 elections, and non-resident Canadian returns. See pricing or book a call.