Canadian Tax Return for Non-Residents Explained
When non-residents must file, the elective returns, refunds, the surtax, and the deadlines
Reviewed by the Fairlight Accounting cross-border tax team — U.S. & Canadian Tax Desks
A non-resident of Canada files a Canadian return only for certain Canadian-source income: employment in Canada, a business carried on in Canada, or a sale of taxable Canadian property such as real estate. Elective returns cover rent (section 216) and pensions (section 217). Income not earned in a province bears a federal surtax instead of provincial tax.
On this page
Which return
| Situation | Return |
|---|---|
| Employment income earned in Canada | Non-resident T1, reporting that income (provincial tax by province of work) |
| Business carried on in Canada | Non-resident T1 (a corporation files a T2) |
| Sale of Canadian real estate or other taxable Canadian property | Non-resident T1 reporting the gain (the section 116 guide) |
| Canadian rent | Section 216 return — net rent at graduated rates (the T776 guide; the NR6 guide) |
| Canadian pensions, RRSP/RRIF, CPP/OAS | Section 217 return — optional (the section 217 guide) |
| Only Part XIII income correctly withheld | No return needed |
| Over-withheld Part XIII | Refund application (NR7-R) |
How tax is computed
Federal tax at graduated rates on the reported Canadian income; all non-refundable credits are allowed only if 90 percent or more of net world income is reported on the return (section 118.94) — otherwise only a few remain, such as CPP/EI contributions, the disability amount, tuition, student-loan interest, and donations; a federal surtax of 48 percent of basic federal tax (section 120(1)) replaces provincial tax on income not earned in a province.
Deadlines
April 30 for most non-resident returns (June 15 if you or your spouse or common-law partner carried on business in Canada, though any balance is still due April 30); section 216 returns within two years after the year-end (December 31, 2027 for 2025 rent), or by June 30 if the CRA approved an NR6 for the year — April 30 if reporting CCA recapture after a sale; section 217 returns June 30, with any balance due April 30.
Frequently asked questions
Do non-residents have to file a Canadian return?
Only for Canadian employment, business income, or a sale of taxable Canadian property — or to elect under section 216 or 217.
Do I file a Canadian return for my RRIF payments?
Not required — withholding is final — but a section 217 return can reduce the tax.
What tax rates apply to non-residents?
Federal rates plus a surtax instead of provincial tax, with limited credits.
When is the return due?
April 30 for most; June 30 for section 217 returns and for section 216 returns under an approved NR6 (otherwise within two years).
Official sources
The Canada Revenue Agency explains: “Even if the payer deducts tax from your income or you pay an amount of tax during the year, you may also have to file a Canadian income tax return to calculate your final tax obligation to Canada on any of the following” — Canada Revenue Agency, Non-residents of Canada, https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/non-residents-canada.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 non-resident Canadian returns — employment, business, property sale, section 216, and section 217 filings and refund applications. See pricing or book a call.
Cross-border taxes, handled in one place
U.S. and Canadian filings prepared together by our U.S. and Canadian Tax Desks.
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