Living together in a committed relationship has legal and financial consequences in Canada, especially when it comes to taxes. If you and your partner meet the Canada Revenue Agency’s (CRA) definition of common law, you may need to declare your status, adjust how you file taxes, and understand how this affects benefits and obligations.
This guide explains what common law means for your taxes in Canada, how to declare your status, and what to expect if your relationship ends.
In Canada, common law generally means that two people live together in a marriage-like relationship but are not legally married. For tax purposes, the CRA recognizes you as common law if you have:
This means your relationship might be considered common law even without a formal agreement.
The CRA’s definition is important because it determines how you file your taxes, whether you qualify for certain benefits, and how your finances are assessed. You can find the CRA’s exact wording in the Income Tax Act.
Once you meet the definition of common law, you must update your marital status with the CRA. This can be done through:
Failing to declare your status can lead to problems. If you continue receiving benefits or credits you’re no longer entitled to, the CRA may require you to repay those amounts with interest.
Contrary to common belief, common-law partners do not file a joint tax return in Canada. Instead, each partner files an individual return, but you must include your partner’s information on your tax form.
This matters because:
Being recognized as common law can increase or decrease the benefits you receive, depending on household income.
In short, declaring common-law status ties your financial picture to your partner’s, for better or worse.
If you and your partner separate for 90 consecutive days or more, the CRA no longer considers you common law. You must inform the CRA of this change.
This affects:
Failing to report a separation can mean missed benefits or overpayments you’ll have to repay later.
While the CRA sets the federal definition of common law for tax purposes, provinces have their own rules for family law, property division, and estate rights.
For example:
This means you could be common law for tax purposes federally but not for property division provincially, or vice versa. That’s why it’s important to understand both systems.
Check out our Learning Centre to find out the rules for common law property division in your province.
No. Each partner files separately, but you must include your partner’s income and marital status details.
You may be overpaid in benefits or credits and will likely have to repay them, with penalties or interest.
If you separate for 90 days or more, you must inform the CRA so your benefits and tax obligations are recalculated.
Taxes are just one part of common-law relationships. Property division, estate planning, and support obligations for common-law couples are not consistent across Canada. The best way to avoid conflict later is to make a clear agreement early in your relationship.
With Jointly, you can create a cohabitation agreement online that outlines financial expectations, property division, and support, both during your relationship and if it ends.
👉 Start your cohabitation agreement today with Jointly and take control of your financial future.
Amanda BaronI'm Amanda, one of the founders of Jointly. I've been working as a lawyer in British Columbia for over ten years. I have a deep commitment to access to justice and building stronger, more resilient communities. I’ve always believed that everyone deserves affordable, clear, and accessible legal solutions to navigate life’s big moments.