Northern Resident Deduction (Québec)

The northern resident deduction is available to individuals who live in a prescribed northern or intermediate zone for a continuous period of at least six consecutive months. This deduction reduces your taxable income to compensate for the higher cost of living and other challenges in these regions. The deduction is available for both federal and Quebec tax returns but requires filing specific forms. The deduction includes two parts:

• Residency deduction: Must have lived in a prescribed northern or intermediate zone for a continuous period of at least six consecutive months, beginning or ending in the tax year. A fixed daily amount for each day of residence in a prescribed zone. The Canada Revenue Agency (CRA) provides a list of prescribed zones by province.
• Travel deduction: Eligible travel benefits or personal travel expenses for trips out of the zone.

Residents of prescribed zones qualify for a higher deduction than those in intermediate zones, claimed on Form T2222 for the federal return and Form TP-350.1-V for the Québec return.

Travel Deductions: Travel deductions for northern residents are available for both federal and Quebec tax purposes, but only to individuals who live in a prescribed northern or intermediate zone for a continuous period of at least six consecutive months. The deductions cover eligible travel costs for personal and medical trips.

Allowable deductions: The deduction you can claim for each eligible trip is the lowest of the following three amounts:

• Taxable travel benefits (Box K of RL-1 slip) received from an employer or the portion of the $1,200 standard amount you allocate to that trip or $ 600 for intermediate zone.
• The total travel expenses paid for the trip.
• The cost of the lowest return airfare (LRA) from the airport closest to your residence to the nearest designated city

Example :

André, a resident of Kuujjuaq, Quebec (Zone A), lived there all year and took one personal trip to Montreal in July 2025 costing $2,200; since the lowest return airfare is $2,500 and no employer benefits were received, he can claim $2,200 as his travel deduction.

Answer: André, a resident of Kuujjuaq (Zone A), claims $8,030 for the residency deduction (365 days × ($11 basic + $11 additional)) and $2,200 for travel, for a total federal deduction of $10,230 on Form T2222 (line 25500). On his Quebec return, he calculates a similar residency deduction on Form TP-350.1-V

How to do in TaxTron? Navigate to the Rare deductions tab, choose the Northern Resident Deduction, and input both your eligible expenses and the applicable Zone