When you move between provinces, the province you live in on December 31 taxes all of your income for that year, no matter how many months you spent in the old one. This page covers that rule, the residential ties CRA looks at, updating CRA after a move, the moving expense deduction and which benefits change. Health coverage, your driver’s licence and the full moving checklist are on the moving provinces guide.
The December 31 rule
CRA’s instructions for the return say it directly: “Your province or territory of residence is the province or territory where you lived or of which you were considered to be a factual resident on December 31” of the tax year (Canada.ca). That province’s tax rates, credits and surtaxes apply to the whole year’s income.
| Your move | Province on December 31 | Whose provincial tax applies to the year |
|---|---|---|
| Ontario to Alberta in March | Alberta | Alberta, on all of that year’s income |
| Alberta to Ontario in November | Ontario | Ontario, on all of that year’s income |
| BC to Quebec in January | Quebec | Quebec (you file a Quebec return as well as the federal one) |
| Saskatchewan to Manitoba on January 2 | Saskatchewan on the December 31 just before the move | Saskatchewan for the year that just ended; Manitoba for the year of the move |
Business income is the exception: if you’re self-employed and had a permanent establishment in another province, the income is split between provinces on Form T2203 instead.
Because the date decides the whole year, the timing of a move changes what you pay. Income you receive during the year of the move, including a bonus, an RRSP withdrawal or a taxable capital gain, is taxed at the rates of the province you live in on December 31, so the same income can cost more or less depending on which side of the year-end the move falls. The lowest-tax provinces page compares income tax by province at several incomes.
How CRA decides where you live
Most moves are clear: you sold or gave up your home in one province and live in the other. When you have ties to both, for example a temporary job posting or a year of school away from your usual home, CRA’s residence folio says you’re treated as resident “only in the province in which the individual has the most significant residential ties” (Income Tax Folio S5-F1-C1).
| Ties | Examples |
|---|---|
| Significant ties | A home you own or rent, a spouse or common-law partner, dependants |
| Secondary ties | A provincial driver’s licence, provincial health coverage, a registered vehicle, bank accounts, personal property |
Keeping a home in the old province, such as a rental property or cottage, isn’t a problem on its own, but it is a tie, so the ties you set up in the new province (a health card, licence, registration and a home) are what show the move happened.
Filing in the year of the move
You file one return for the year, as a resident of your December 31 province, and report all your income on it. Residents of Quebec on December 31 also file a Quebec return with Revenu Québec and claim the Quebec abatement on the federal return.
The moving expense deduction
If you moved to start a job, run a business or study full time and the move brought you at least 40 km closer to the new location, you can deduct many of the costs of the move (movers, travel, temporary lodging, selling costs on your old home) on line 21900, against income you earn at the new location. The moving expense deduction guide covers which costs count, the simplified and detailed methods, the income limit and carrying the unused amount forward. Money an employer pays toward your move is covered in is relocation assistance taxable.
Updating CRA after a move
| Method | How |
|---|---|
| CRA My Account | Sign in and change your address under your profile; this is the quickest route |
| By phone | Individual tax enquiries at 1-800-959-8281 (Monday to Friday, 8 a.m. to 8 p.m. local time (Eastern Time for the phone system itself); closed weekends and public holidays) |
| On your next return | The address on your return updates your file, but only when the return is processed, months after the move |
Have your SIN and details from your last return ready if you phone. Service Canada keeps a separate address for EI, CPP and OAS; the EI and CPP page explains how to update it.
If you don’t update your address, benefit payments, notices of assessment and letters asking for information go to the old address, and deadlines in those letters keep running. Provincial credits paid through CRA also depend on the province CRA has on file.
Which benefits change
| Benefit | After a move |
|---|---|
| Canada Child Benefit | Continues; update your address with CRA |
| Canada Groceries and Essentials Benefit (formerly the GST/HST credit) | Continues; update your address with CRA |
| Provincial child benefits paid with the CCB (Ontario Child Benefit, BC Family Benefit, Alberta Child and Family Benefit) | CRA administers them, so your address tells it which province’s program applies; Quebec’s Family Allowance is paid by Retraite Québec instead |
| OAS, GIS and CPP | Continue; update your address with Service Canada |
| EI (active claim) | Continues; update your address with Service Canada |
| Provincial social assistance and disability support | End when you leave; apply to the new province’s program |
| Provincial drug plans and seniors’ supplements | End when you leave; apply in the new province |
The government benefits by province page compares what each province pays. BC’s Climate Action Tax Credit and the federal Canada Carbon Rebate have both ended, so neither depends on where you move.
Tax steps in the moving checklist
- Before you move: compare provincial income tax at your income, and keep receipts for deductible moving costs.
- In the first weeks: update CRA (My Account) and tell your employer, so payroll withholds the new province’s tax.
- At tax time: file as a resident of your December 31 province and claim moving expenses on line 21900.
The full list, including health coverage and your licence, is the moving checklist.
Related reading
- Moving from Ontario to Alberta: the tax difference at several incomes.
- Finances after selling your house: what to do with the proceeds of a move.
Sources
The figures and rules on this page come from these sources, last checked against them on September 23, 2026. How we check facts.
- Canada Revenue Agency: Contact the Canada Revenue Agency (CRA)