New U.S. Travel and Tax Rules for Canadians: Registration and Residency Considerations

From immigration registration requirements to U.S. tax residency rules, here’s what you need to know to stay compliant.

Effective April 11, for immigration purposes, Canadians who are in the United States for more than 30 days (i.e. snowbirds) will now have to register with Homeland Security (https://www.federalregister.gov/documents/2025/03/12/2025-03944/alien-registration-form-and-evidence-of-registration). The penalty for not complying is a fine of up to $5,000 or imprisonment for up to six months, or both.

This is not the same analysis to determine if visiting the US creates an income tax filing requirement. Tax residency is determined based on the Substantial Presence Test (SPT). A person is considered a U.S. resident for income tax purposes if physically present in the U.S. for:

• At least 31 days in the current tax year, and
• 183 days or more over a 3-year period, calculated as follows:
  • All days in the current year
  • 1/3 of the days in the previous year
  • 1/6 of the days in the year before that
• There is an exception to the SPT: Even if the test is met, a person may still be considered a non-resident for U.S. tax purposes if they can demonstrate a closer connection to Canada by filing Form 8840.

For any income tax considerations, you can reach out to our U.S. tax group professionals for assistance here.