Residency tests compared across the United States, Canada and India show why one person can be a resident of two or even all three countries in the same year. The United States counts days over three years or looks at your green card. Canada looks at ties such as a home, a spouse and dependants. India counts days in the current year and the four years before. Residency decides whether a country taxes your worldwide income or only the income it can reach at the source, so it is the first question in any cross-border file.
Residency tests compared: how do the three systems work?
| Feature | United States | Canada | India |
|---|---|---|---|
| Primary test | Green card test or substantial presence test | Residential ties | Days of stay |
| Day-count rule | At least 31 days this year and 183 weighted days: current year in full, one-third of last year, one-sixth of the year before | 183 or more days in the year can make you a deemed resident | 182 days or more this year, or 60 days this year plus 365 days in the preceding four years |
| Look-back | Two prior years, weighted | None for the day rule | Four preceding years for the 60-plus-365 test |
| Ties or home | Relevant only to the closer connection exception and treaty tests | Central: home, spouse or partner, dependants, then secondary ties | Not part of the basic test |
| Citizenship | Citizens are taxed worldwide whatever their residence | Not a test | Deemed resident rule for some citizens |
| Part-year status | Dual-status year | Entry and departure dates | Status determined per tax year |
| Special groups | Exempt individuals such as F, J, M and Q visa holders | Deemed non-resident under a treaty | Resident but not ordinarily resident (RNOR) |
The IRS formula is simple to state and easy to miscount: a person with 120 days in each of three years has 120 plus 40 plus 20, or 180 weighted days, so is not a resident under the test. Exempt-individual days do not count, but Form 8843 must be filed to exclude them. The IRS also notes that a closer connection to a foreign country can override the test in some cases.
Canada and India in more detail
The CRA says the most important factor is whether you maintain or establish significant residential ties with Canada: a home, a spouse or common-law partner and dependants. Secondary ties, such as personal property, social memberships, Canadian bank accounts, a Canadian driver's licence or provincial health insurance, may also matter. A person who has not established significant ties but stays 183 or more days is a deemed resident. Someone who is a factual resident but is also a resident of a treaty partner under the treaty's rules can be treated as a non-resident for Canadian tax. Our Canada residency rules guide goes further.
India's rules, as the Income Tax Department explains in its non-resident FAQs, include these (more in our India residency rules guide):
- Resident if present 182 days or more in the tax year, or 60 days in the year plus 365 days or more in the preceding four years.
- An Indian citizen who leaves India for work abroad, or serves as crew on an Indian ship, is tested on the 182-day rule only.
- A visiting Indian citizen or person of Indian origin earning more than Rs 15 lakh from Indian sources uses 120 days in place of 60 days.
- An Indian citizen with total income above Rs 15 lakh (excluding foreign-source income) who is not liable to tax in any other country by reason of domicile or residence is treated as a deemed resident, regardless of days.
- A person is not ordinarily resident (RNOR) if non-resident in nine of the ten preceding years, or present 729 days or less in the preceding seven years.
These tests continue under the Income-tax Act, 2025, which began on April 1, 2026. Residential status for years before April 1, 2026 stays under the 1961 Act, while later years use the new Act, and stays in earlier years still count in the look-back. Your Indian CA confirms how this applies to your dates.
Which country wins in common scenarios?
| Scenario | United States | Canada | India |
|---|---|---|---|
| Indian citizen on an H-1B in Naperville, 20 days in India a year | Resident (substantial presence) | Non-resident, no ties | Non-resident; leaving for work abroad means the 182-day rule only |
| Canadian on a TN visa in Aurora, keeps a Calgary home and family there | Resident if days reach the test | Likely still resident because of ties | Not relevant unless Indian ties exist |
| U.S. citizen living in Toronto with a Toronto home | Taxed as a citizen | Resident | Not relevant |
| Retired Indian citizen in Illinois visiting India 130 days a year with Rs 20 lakh Indian income | Depends on U.S. status | Not relevant | The 120-day rule with 365 days can make a resident; RNOR status may apply, which the CA confirms |
When two countries both treat you as resident, the treaty applies an ordered tie-breaker. Most treaties look first at your permanent home, then the centre of your vital interests, your habitual abode and your citizenship, and the treaty text controls. A treaty-based position is generally disclosed on Form 8833 in the U.S. and is not automatic. See the residency tie-breaker guide and the guide on snowbirds and Form 8840.
A worked example
Farah, a Canadian citizen and Indian-origin professional, spends 230 days in 2026 in Aurora on an L-1 visa, 90 days at her Calgary house and 45 days in Hyderabad. In the U.S., her 230 current-year days exceed 183, so she meets the substantial presence test. In Canada, she kept the Calgary home available and her bank accounts and health coverage, so she may still be a factual resident, which makes her a dual resident of the U.S. and Canada. In India, 45 days is below 60, and she is not a deemed resident because she is taxed in the U.S. or Canada, so she is a non-resident. The treaty tie-breaker looks at her permanent home; if she rents out the Calgary house and her family lives in Aurora, the U.S. is likely to prevail, and she documents this on her return. She asks us to prepare a day-count schedule that all three advisers can use.
Mistakes to avoid
- Counting only the current year and forgetting the U.S. weighting and India's four-year look-back.
- Assuming that 182 days is the only test in India, or that 183 days is the only test in Canada.
- Forgetting Form 8843 for exempt-individual days.
- Keeping a home, accounts and a health card in one country and assuming you have left it.
- Claiming treaty benefits without a documented tie-breaker analysis.
How we can help
Our Aurora, Illinois firm builds a day-count and ties schedule, determines U.S. status and coordinates with your Canadian CPA and Indian CA so the three countries are told a consistent story. See relocation and immigration tax planning, individual returns for newcomers and NRIs and our US residency tests guide. More three-country tables are on the comparisons hub.
Frequently asked questions
Can I be a resident of the U.S. and India at the same time?
Yes. Each country applies its own test. A treaty may settle which country has priority, but the tests themselves are independent.
Does 183 days in Canada always make me resident?
If you have not established significant residential ties but stay 183 or more days, you can be a deemed resident. Residents with ties can be resident with far fewer days.
Do days in the U.S. on a student visa count?
Days as an exempt individual, such as an F, J, M or Q student visa holder, do not count for the substantial presence test if you file Form 8843. Other statuses are different.
What does RNOR mean?
Resident but not ordinarily resident is a transitional Indian status that limits tax on foreign income. It depends on look-back tests and applies for years the CA identifies.
Which form discloses a treaty tie-breaker position?
In the U.S., generally Form 8833 attached to the return. The Canadian and Indian equivalents are handled by your Canadian CPA and Indian CA.
Official sources
- IRS: Substantial presence test
- IRS: Taxation of dual-status individuals
- CRA: Determining your residency status
- Income Tax Department (India): Non-resident FAQs
- PIB: Income-tax Act, 2025 comes into force
This page summarizes public guidance in plain language. If anything here differs from the official source, the official source controls.
General information only. It is not tax, legal, accounting or immigration advice for your situation, and rules change; confirm the current rules with the official source or a licensed professional in the relevant country.