Line 25500 – How to calculate the residency deduction

Note: Line 25500 was line 255 before tax year 2019.

There are two parts to the residency deduction:

• a basic residency amount – Claim this amount for the number of days in the year that you lived in a prescribed zone
• an additional residency amount – Claim this amount for the days you used to calculate your basic residency amount if you maintained and lived in a dwelling in the prescribed zone during that time and you are the only person claiming the basic residency amount for living in that same dwelling for that period

If you are the only person in the household claiming the basic residency amount for a particular period and dwelling, you can also claim the additional residency amount.

To claim the deduction that most benefits your household, you should consider the taxable income of all the members of your household when deciding which one of you will claim the residency deduction. 

Deduction limits for the residency deduction

• If you lived in a prescribed northern zone (Zone A), you can claim:
  • a basic residency amount of $11.00 for each day that you lived in this zone between January 1 and December 31 in 2022
  • an additional residency amount of $11.00 for each day you maintained and lived in a dwelling in the prescribed zone between January 1 and December 31 in 2022 and you are the only person claiming the basic residency amount for living in that same dwelling for that period
• If you lived in a prescribed intermediate zone (Zone B), you can claim:
  • a basic residency amount of $5.50 for each day that you lived in this zone between January 1 and December 31 in 2022
  • an additional residency amount of $5.50 for each day you maintained and lived in a dwelling in the prescribed zone between January 1 and December 31 in 2022 and you are the only person claiming the basic residency amount for living in that same dwelling for that period

What is a dwelling?

A dwelling is a self-contained domestic establishment. Generally, this is a complete and separate living unit with a kitchen, bathroom, sleeping facilities, and its own private access. It includes a house, an apartment, a mobile home, or another similar place of residence in which a person usually sleeps and eats. It does not include a bunkhouse, dormitory, hotel room, or room in a boarding house.

Dwelling provided rent-free by an employer

The CRA considers you to have maintained and lived in a dwelling, even if your employer let you live there rent-free and paid all the utility, maintenance, and other costs related to the dwelling.

Each person living in the dwelling can claim the basic residency amount as a deduction on their return. However, if more than one person claims the basic residency amount for a particular period and dwelling, no one in that household can claim the additional residency amount for that period and dwelling.

Special work site 

If your principal place of residence is not in a prescribed zone, you may still qualify for all or a portion of the basic residency amount for living at a special work site provided that the site is located in a prescribed zone and you resided at the site for at least six consecutive months.

If you received non-taxable benefits for board and lodging at a special work site (shown in either box 31 of your T4 slip or box 124 of your T4A slip), your residency amounts will be reduced.

Enter the amount of non-taxable benefits on line 4 or 9 of Form T2222 unless the special work site is 30 kilometres or more from the nearest point on the boundary of any population centre that has a population of at least 40,000 individuals.

For more information about special work sites, see Archived Interpretation Bulletin IT-91R4, Employment at Special Work Sites or Remote Work Locations.

Forms and publications

• Income Tax Package – Guide, Return, and Schedules
• Form T2222, Northern Residents Deductions
• Information Sheet RC4650, Northern Residents Deductions
• Archived Interpretation Bulletin IT-91R4, Employment at Special Work Sites or Remote Work Locations