How to File Your Tax Return for the Year You Leave

The part-year return, forms such as T1161 and T1243, deadlines

Scott Tang, CPAUpdated 2026-11-052026 rules4 min read

In the year you leave Canada, you are a part-year resident. You report your worldwide income from before your departure date as usual, plus departure tax (the gains on the deemed disposition). After your departure date, only some Canadian-source income is reported on the same return; the rest is dealt with under the non-resident withholding rules. The deadline is still April 30 of the following year.

Before departure

Worldwide income reported as usual

Departure tax

Gains on the deemed disposition are reported in the year you leave

Prorated by days

The basic personal amount and other credits are generally prorated by the number of days you were resident

April 30 of the next year

The usual deadline for the T1 and T1161 (June 15 for eligible self-employed people); the T1244 and any balance owing are usually due April 30; the budget proposes a single May 15 filing and payment deadline for individuals from the 2027 taxation year (not yet law)

Reporting income before and after you leave

Item	Before your departure date	After your departure date
Worldwide income	Report all of it (wages, interest, dividends, foreign income)	Foreign income is no longer reported
Wages for work in Canada, gains on selling Canadian real estate	Report	Generally also reported on this return (under the non-resident rules)
Canadian rent, dividends, RRSP withdrawals	Report	Generally the payer withholds non-resident tax and it isn't reported on this return (for rent, you can file a separate section 216 return)
Ordinary arm's length interest	Report	Generally exempt from withholding; participating debt interest and related-party interest are looked at separately
Benefits	Received under the usual rules	Stop; you need to tell the CRA

Forms to file

1
T1 return
Enter your departure date
2
T1243
The assets deemed disposed of and the gains
3
T1161
List of properties if their total value is over $25,000 when you leave
4
T1244
Election to defer payment of departure tax (if needed)
5
T1135
If your foreign property was over C$100,000 while you were resident

How credits are calculated

Prorated by days
The basic personal amount, the spouse or common-law partner amount and similar credits are generally prorated by the number of days you were resident.
When you can claim in full
If 90% or more of your net world income for the non-resident part of the year is Canadian-source income included in your Canadian taxable income, you can claim the full amounts — it isn't just a question of the money being paid from Canada. The CRA's guidance sets out the exact conditions.
Some credits in full
Tuition, medical expenses, donations and similar amounts incurred before you leave are claimed based on the amounts actually incurred.

Points to watch

April 30 of the year after you leave
You will already be abroad, so you need to be able to receive mail and CRA notices; update your address or appoint an authorized representative.
Don't miss the T1161
Filing late costs $25 a day, with a minimum of $100 and a maximum of $2,500; many people remember the tax return but forget this form.
Cash for departure tax
A deemed disposition brings in no cash, but the tax is still payable; if you don't plan to defer it, have the funds ready before you leave.
Your spouse files too
If you leave together, each of you files your own departure-year return; if your spouse stays behind, the situation is completely different.

How Sheng Qian CPA can help

The whole departure year in one go
We prepare the T1, T1243, T1161, T1244 and T1135 together, so the numbers match.
Your authorized representative
While you are abroad, we deal with the CRA on your behalf, within the scope of your authorization.
Filings after you leave
Section 216 returns for rent, the section 116 clearance certificate when you sell, RRSP withdrawals. For prices, see "What Sheng Qian CPA Can Do for Newcomers and People Leaving Canada: Support on Arrival and on Departure" in this series.

Sources

CRA: Emigrants and income tax
CRA: Form T1161 · Form T1243

Disclaimer

This article is general information only and is not tax advice. Everyone's situation is different; please consult a CPA about your specific arrangements. Service fees are as set out in our written quote.