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Writer's pictureNatesh Pillai

Don’t miss out on tax benefits for northern residents

If you lived in a northern or remote area for six months or more in 2023, you may qualify for the northern residents deductions. These deductions recognize the unique challenges northern residents face, such as higher living costs and limited access to services. Find out if you lived in a prescribed northern zone (Zone A) or a prescribed intermediate zone (Zone B) at canada.ca/cra-line-25500.

The deductions include a residency deduction and a travel deduction. These can provide relief for both your daily living expenses and eligible travel. If you are eligible, these deductions will reduce your taxable income.

Residency deduction

You may be able to claim up to $11 a day for Zone A and $5.50 a day for Zone B for the basic residency amount. You may also be able to claim an additional residency amount if you are the only person in the household claiming the basic residency amount for the period and you were responsible for maintaining the dwelling you live in.

Find out if you’re eligible at Calculate your residency deduction.

Travel deduction

You can claim the travel deduction for medical or personal trips originating from a prescribed zone, using various modes of transportation. You can claim up to two personal trips that you took and up to two personal trips taken by each eligible family member. It doesn’t matter who claims the trips, but only two personal trips for each individual can be claimed in a tax year. There is no limit on the number of claims for medical trips.

To claim, you must provide receipts or records for the total travel expenses. You also need to provide the lowest return airfare (LRA) available at the time of the trip between the airport closest to your residence and the nearest designated city.

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