NORTHEREN RESIDENT DEDUCTION

People who live in prescribed northern or intermediate zones for at least six consecutive months beginning or ending in the tax year can claim northern residents deductions on line 25500 using Form T2222. The deductions recognise the higher cost of living in remote regions.

ZONES

• Prescribed northern zone (Zone A): the three territories and certain northern areas of the provinces. Full deductions apply.

• Prescribed intermediate zone (Zone B): other remote areas. Half of the deductions apply.

• For 2025 and later, Haida Gwaii in British Columbia moved from the intermediate zone to the northern zone.

• Most of Ontario is outside both zones, but some areas of northern Ontario are included.

RESIDENCY DEDUCTION

• Basic residency amount: $11 per day of residence in the zone.

• Additional residency amount: another $11 per day if the taxpayer maintained and lived in a dwelling there and was the only person claiming the basic amount for that dwelling for that day.

• For intermediate zones, each amount is halved.

• The deduction cannot exceed 20 percent of net income.

TRAVEL DEDUCTION

• Covers non-taxable travel benefits received from an employer for trips by the employee and family members.

• Up to two trips per year per person for any purpose, and unlimited trips for medical purposes.

• The deduction is the least of the taxable travel benefit received, actual travel costs, and the cost of the lowest return airfare to the nearest designated city, or a standard $1,200 amount per eligible person that can be allocated among trips.