Do I have to report foreign income if I live in Ontario?

Yes — Ontario residents, like all Canadian tax residents, are taxed on their worldwide income. This means foreign employment income, foreign investment income, foreign rental income, and gains from selling foreign property must all be reported on your Canadian T1 return, converted to Canadian dollars.

If you paid foreign tax on income that is also taxable in Canada, you can generally claim a Foreign Tax Credit (FTC) to avoid double taxation. The credit is calculated on Schedule T2209 and limits the credit to the Canadian tax on that income, so you will not be refunded more than what you paid abroad.

In addition to reporting income, if you own specified foreign property with a total cost over $100,000 CAD at any point during the year, you must file Form T1135 (Foreign Income Verification Statement) with your T1. Failure to file T1135 when required carries significant penalties, even if all the income was properly reported. The CRA has become increasingly active in enforcing foreign asset disclosure. If you have foreign bank accounts, investments, real estate, or interests in foreign companies, a tax professional with cross-border experience should review your obligations.