Employees requesting a reduction in payroll deductions, Form TD1, Personal Tax Credits Return

Employees who live in a prescribed zone during a continuous period of at least six months (that begins or ends in the tax year) may be entitled to claim the northern residents deductions when filing their income tax and benefit returns. As a result, these employees can ask for a Reducing remuneration subject to income tax by completing the back of Form TD1, Personal Tax Credits Return.

The residency deduction is equal to whichever is less:


Employees cannot claim a residency amount for both the principal place of residence and the special work site for the same period, even if they are both located in prescribed zones.

For 2023, an employee living in a prescribed northern zone can claim the total of:

For 2023, employees living in a prescribed intermediate zone can claim 50% of the total of the above amounts.


Employees who receive board and lodging benefits from employment at a special work site in a prescribed zone have to reduce their residency amount by the value of the 30-kilometre part of the benefit they receive if they keep a principal residence that is not in a prescribed zone. The 30-kilometre part of the excluded benefit will be shown in the "Other information" area under code 31 at the bottom of the employee's T4 slip. For more information, see Board, lodging, and transportation at a special work site in a prescribed zone.

To calculate the amount of tax you should deduct if an employee is claiming a residency deduction on Form TD1:

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