If you’re living with your partner and sharing your life, finances, or family, you might already be considered common law in the eyes of the Canada Revenue Agency (CRA) even if you’ve never signed a marriage certificate. Understanding what the CRA means by “common law” is essential, because it affects how you file your taxes, what benefits you can claim, and how your relationship is recognized legally and financially.
What Does Common Law Mean in Canada?
In Canada, common law refers to a relationship where two people live together in a marriage-like partnership without being legally married. The specific definition can vary slightly by province for family law purposes, but for federal purposes – like taxes and benefits – the CRA has its own standard.
You are considered common law for CRA purposes if you have lived together in a conjugal relationship for 12 continuous months, or if you share a child by birth or adoption. This definition means that your relationship might be legally recognized long before you realize it has tax and benefit implications.
Many couples only discover their common-law status when they start filing taxes or applying for government programs. Being proactive can help you avoid surprises and take advantage of the benefits available.
CRA Common Law Definition
According to the CRA, a common-law partner is a person with whom you live in a conjugal relationship and at least one of the following applies:
- You have lived together continuously for 12 months or more
- You share a child by birth or adoption
- One person has custody and control of the other’s child (or children), and the child is dependent on them for support
Once you meet any of these criteria, the CRA considers you common law starting from the date you began living together continuously. That means your tax and benefit responsibilities change as of that date – not just when you decide to update your status.
Declaring Common Law to the CRA
If you become common law, you must declare your status change to the CRA as soon as possible – ideally within the month after your relationship status changes.
You can declare your common-law relationship to the CRA in one of these ways:
- Through your CRA My Account, under “Change my marital status”
- By submitting Form RC65 (Marital Status Change)
- When you file your annual income tax return
Declaring your status ensures that the CRA can correctly calculate your benefits and tax credits, which often depend on household income. Failing to declare can lead to overpayments of benefits like the Canada Child Benefit (CCB) or GST/HST credit, which the CRA may later require you to repay.
Common Law Partner Proof
Sometimes, the CRA may ask for proof of common-law status – especially if you’re applying for benefits or changing your marital status retroactively.
Common law partner proof might include:
- Joint lease or mortgage agreements
- Shared bills or joint utility accounts
- Bank or credit card statements showing shared finances
- Children’s birth certificates listing both partners as parents
- Government-issued ID showing the same address
It’s a good idea to keep records that show your shared life. These documents can help if you ever need to confirm your relationship status or prove the start date of your common-law relationship.
CRA Common Law Benefits
Declaring common law can change how much you receive in government benefits and credits. The CRA combines both partners’ incomes to determine eligibility for programs such as:
- Canada Child Benefit (CCB)
- GST/HST credit
- Working Income Tax Benefit (WITB)
- Disability Tax Credit (DTC)
Depending on your combined household income, your benefits could increase or decrease. For example, if one partner earns significantly less, you might qualify for a higher CCB or more tax credits. On the other hand, if your household income increases, some benefits may be reduced.
Even though it might be frustrating to lose benefits, being transparent ensures that you’re compliant with CRA rules and avoids unexpected repayment requests later.
CRA Common Law Tax Filing Rules
Once you’re considered common law, your tax filing obligations change even though you and your partner will still file separate tax returns.
Here’s what changes when you file as common law:
- You must indicate your marital status as “common law.”
- You must report your partner’s net income, since it affects certain credits and benefits.
- Some deductions and credits (like medical expenses or charitable donations) can be pooled between partners to maximize savings.
Filing as common law can sometimes result in tax advantages, especially if one partner earns significantly less or has eligible expenses that can be transferred to the other.
CRA Common Law Separation
If you separate after being recognized as common law, the CRA also needs to be notified. For CRA purposes, you’re considered separated when you’ve lived apart for at least 90 consecutive days due to a breakdown in the relationship.
Once you’ve been separated for those 90 days, you can update your marital status through your CRA My Account or by filing Form RC65. This ensures that your future benefits and tax calculations reflect your new situation.
Keep in mind that a common law separation can have implications beyond taxes including property division and support obligations. If you separate, it’s a good idea to have a separation agreement in place to clearly outline your rights and responsibilities.
FAQs
Is it better to file taxes as common-law or single in Canada?
It depends on your household income and eligibility for credits. Filing as common law can unlock shared deductions and benefits but may reduce certain income-tested benefits if your combined income is higher.
Do you have to declare a common law partner in Canada?
Yes. Once you meet the CRA’s common-law definition (after 12 months of living together or having a child), you must update your marital status with the CRA.
Is it better to be married or common law in Canada?
For tax purposes, there’s little difference — both are treated similarly by the CRA. However, legal rights and obligations related to property, inheritance, and separation can differ significantly between married and unmarried couples, depending on the law in your province of residence.
Does common-law apply to all of Canada?
The CRA’s definition of common law applies nationwide for tax and benefit purposes. The definition of common law for family law purposes varies province by province.
Final Thought:
Understanding your CRA common law status helps you stay compliant, avoid unexpected tax issues, and make informed financial decisions as a couple. And if your relationship changes – through moving in together, getting married, or separating, having a clear relationship agreement can make those transitions smoother.
If you’re ready to protect your relationship and your finances, Jointly can help you create a legally-compliant cohabitation agreement online, from the comfort of your home. Get started today.
- CRA Common Law - November 10, 2025
- Common Law Separation BC - November 10, 2025
- Alberta Interdependent Relationships - October 4, 2025
