How much is the northern residents deduction for 2026, and how does the household rule work?
For 2026, the northern residents residency deduction is $11.00 a day in a northern zone (Zone A), plus another $11.00 a day if your client is the only household member claiming, for up to $22.00 a day. Intermediate zone (Zone B) residents get half. The residency deduction is capped at 20% of net income.
What are the 2026 northern residents deduction amounts?
The basic residency amount is $11.00 a day for a northern zone (Zone A) and $5.50 a day for an intermediate zone (Zone B). Your client adds the same amount again as the additional residency amount when they kept and lived in a dwelling in the zone and nobody else in the household claims the basic amount for it canada.ca.
| Component | Zone A (northern) | Zone B (intermediate) |
|---|---|---|
| Basic residency amount, per day | $11.00 | $5.50 |
| Additional residency amount, per day | $11.00 | $5.50 |
| Maximum per day, sole claimant | $22.00 | $11.00 |
| Full year 2026 (365 days), sole claimant | $8,030 | $4,015 |
| Residency deduction cap | 20% of net income | 20% of net income |
| Share of eligible travel costs deducted | 100% | 50% |
| Standard travel amount, per person per year | $1,200 | $1,200 |
The daily figure is written into paragraph 110.7(1)(b) of the Income Tax Act: $11.00 a day for the basic part and $11.00 a day for the additional part, multiplied by a specified percentage of 100% for a northern zone and 50% for an intermediate zone under subsection 110.7(2) laws-lois.justice.gc.ca. As of October 2026, the Act (current to September 21, 2026) still sets $11.00, and section 110.7 was last amended in 2022, so the 2026 amounts match 2025.
The CRA hasn't posted a 2026 Form T2222 yet. The latest version is the 2025 form, which uses the same $11.00 and $5.50 rates canada.ca.
Who qualifies for the residency deduction?
Your client must have lived in a prescribed zone on a permanent basis for at least six consecutive months, beginning or ending in the tax year. A temporary absence doesn't usually break the period, and moving directly from one place in a prescribed zone to another doesn't interrupt it. A person who died qualifies if they lived in a zone for six months or more before death canada.ca.
If the six months aren't complete when the return is due, file without the claim and ask for an adjustment once they are canada.ca. See /tax/cra-change-my-return/ for how to request it.
All places in Yukon, the Northwest Territories, Nunavut and Labrador are in a northern zone. All of Anticosti Island and the Magdalen Islands are in an intermediate zone. Everywhere else, check the community against the CRA's zone list by province canada.ca.
The additional amount needs a dwelling: a home with its own kitchen, bathroom, sleeping area and private access. Bunkhouses, dormitories, hotel rooms and rooms in a boarding house don't count, so a client in camp housing gets the basic amount at most canada.ca.
At a special work site, board and lodging benefits that weren't taxed (box 31 of the T4 or box 124 of the T4A) reduce the residency amount on line 4 or line 9 of T2222, unless the site is 30 km or more from a population centre of at least 40,000 people canada.ca.
Worked example: who in the household should claim?
Each person living in the dwelling can claim the basic amount. But if more than one person claims it for the same dwelling and period, nobody in the household gets the additional amount, and the CRA tells you to weigh every member's taxable income when choosing the claimant canada.ca.
Take a couple living in Yellowknife (Zone A) for all of 2026. Spouse 1 has net income of $95,000, so a 20% cap of $19,000. Spouse 2 has net income of $15,000, so a cap of $3,000. A full year is 365 days: $4,015 of basic amount per person, and $8,030 for a sole claimant.
| Option | Spouse 1 deducts | Spouse 2 deducts | Household total |
|---|---|---|---|
| Spouse 1 claims alone (basic plus additional) | $8,030 | $0 | $8,030 |
| Both claim the basic amount only | $4,015 | $3,000 (capped) | $7,015 |
| Spouse 2 claims alone (basic plus additional) | $0 | $3,000 (capped) | $3,000 |
The gross amount is the same $8,030 in every option. The 20% cap on line 12 of T2222, which uses net income from line 23600, decides how much survives canada.ca. Here spouse 1 should claim alone: the full $8,030 fits under the cap and lands at the higher marginal rate. Splitting only makes sense when both spouses have room under their caps.
How does the northern residents travel deduction work?
The travel deduction covers trips that start from the prescribed zone, for medical care or any other reason, taken by your client or an eligible family member (spouse or common law partner, children under 18, and certain dependent relatives living with them). Each person gets up to two personal trips a year, counted across all taxpayers, plus any number of medical trips canada.ca. Subsection 110.7(3) limits medical trips to care not available where the person lives
laws-lois.justice.gc.ca.
For each trip, the deduction is the lowest of three amounts: the taxable travel benefit from the employer for that trip (or the part of the $1,200 standard amount your client assigns to it), the travel costs actually paid, and the lowest return airfare from the nearest airport to the nearest designated city canada.ca.
The airfare test uses the nearest designated city, not the destination. The CRA publishes a lowest return airfare table by period of travel, and using it means no quote or receipt for the fare is needed canada.ca. For trips that began July to September 2026, Yellowknife to Edmonton is $619.42
canada.ca.
Worked example: a Yellowknife resident with no employer travel benefit flies to Vancouver in August 2026 for $1,450, then takes a second personal trip in September for $900.
| Test | Trip 1 (August) | Trip 2 (September) |
|---|---|---|
| Standard amount assigned | $619.42 (of $1,200) | $580.58 (what remains) |
| Costs paid | $1,450.00 | $900.00 |
| Lowest return airfare, YZF to Edmonton | $619.42 | $619.42 |
| Deduction (lowest of the three) | $619.42 | $580.58 |
The two trips total $1,200, the whole standard amount for that person laws-lois.justice.gc.ca. A third personal trip that year gets nothing. In Zone B, the whole travel total is cut in half on line 15 of T2222
canada.ca.
Which travel benefits and costs block or reduce the claim?
Taxable travel benefits show in box 32 of the T4 or box 028 of the T4A, and medical travel benefits in box 33 of the T4 or box 116 of the T4A. Once employer travel benefits are used for a person, none of that person's $1,200 standard amount is available that year canada.ca.
No claim is allowed for a trip if your client received, or was entitled to, travel assistance or a reimbursement that wasn't taxed, or if someone else already claimed the trip. Costs of a medical trip claimed here can't also go on the medical expense credit canada.ca. See /tax/medical-expense-threshold-2026/ for that credit.
Travel costs include fares, vehicle costs, meals, accommodation, camping and incidental costs. The lowest return airfare includes GST, PST or HST and airport taxes, but not insurance, meals or baggage fees canada.ca.
Where does the Form T2222 total go on the return?
Complete Form T2222 and enter line 19 (the residency deduction from line 13 plus the travel deduction from line 16) on line 25500 of the return canada.ca. Paper filers attach T2222 only. Keep receipts and supporting documents for at least six years
canada.ca.
Is the northern residents deduction indexed to inflation?
No. The $11.00 daily amount is a fixed figure in paragraph 110.7(1)(b) of the Income Tax Act, so it changes only when Parliament amends the section, and as of October 2026 it still reads $11.00 laws-lois.justice.gc.ca.
Can both spouses claim the residency deduction?
Yes, each can claim the basic amount, but then neither gets the additional amount for that dwelling and period canada.ca. In Zone A that means $11.00 a day each instead of $22.00 a day for one of them.
Does a worker living in camp housing qualify?
Yes, for the basic amount, if they lived at the special work site in a prescribed zone for at least six consecutive months. Board and lodging benefits that weren't taxed reduce the claim, and a bunkhouse isn't a dwelling, so the additional amount isn't available canada.ca.
Can my client claim the travel deduction without an employer travel benefit?
Yes. Without employer travel benefits, the $1,200 standard amount under subsection 110.7(6) stands in for the benefit test, per person per year laws-lois.justice.gc.ca. Each trip is still limited to the lower of costs paid and the lowest return airfare.
General information for the tax year shown, not advice for a specific client. Confirm the facts before you file or remit.