Mind Your Fs and Ps

Federal tax returns are required to be filed by all Canadians who have a balance due or file to recover overpaid taxes or refundable tax credits. Provincial taxes for the whole year are based on your province of residence on December 31.

Moves to more highly taxed provinces should therefore be planned for the start of a tax year. Moves to provinces with a lower tax rate are best planned for later in the year so that the lower rate applies to the whole year.