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This bill changes the federal northern residents deduction in the Income Tax Act. It raises the daily amounts you can deduct for living in the North, ties those amounts to inflation, and merges the “intermediate” and “northern” zones into one “northern zone.” It also writes the zone map into a new Schedule 1 of the Act and lets the government update that map by order. The changes apply to the 2025 and later tax years (Application clause).
Households/residents in listed northern areas
Workers
Businesses
Local governments
Estimated net cost: Data unavailable.