Digital Nomad
How Digital Nomads in Canada Can Navigate the Personal Support Workers Tax Credit
A newly proposed tax credit offers refundable benefits for Personal Support Workers — learn whether digital nomads moving into or out of Canada could qualify and how to make it work.
By NomadicTax Research Team • 5-8 min read • November 23, 2025
## What’s the new Personal Support Workers Tax Credit?
Canada’s **Budget 2025** proposes the introduction of a **temporary five-year refundable tax credit** for eligible *personal support workers (PSWs)*, equal to **5% of eligible employment earnings**, up to **$1,100/year**. It applies for tax years **2026 to 2030**, focused on those in provinces or territories **not already covered** by bilateral wage-increase agreements. ([budget.canada.ca](https://www.budget.canada.ca/2025/report-rapport/chap3-en.html?utm_source=openai))
Eligible earnings must be from work in regulated health or care-establishments and the worker must provide one-on-one care for daily living, mobilization, etc. ([budget.canada.ca](https://www.budget.canada.ca/2025/report-rapport/tm-mf-en.html?utm_source=openai))
## What’s important for Digital Nomads?
Digital nomads often cross borders, earning remotely or relocating. Key considerations:
- **Residency for tax purposes**: To claim Canadian tax credits, including this one, you typically need to be a *resident for tax purposes*. If you’re a nomad who becomes a non-resident, eligibility usually drops off.
- **Provincial agreements**: If you work in a PSW role, where you physically perform eligible work in Canada, check if your jurisdiction has a bilateral agreement. BC, Newfoundland & Labrador, and the Northwest Territories already have agreements, which exclude those provinces from needing the tax credit under federal provisions. ([budget.canada.ca](https://www.budget.canada.ca/2025/report-rapport/tm-mf-en.html?utm_source=openai))
- **Remote work from abroad**: Working remotely from another country might not count; earnings abroad likely not eligible. Physical presence may be required in the eligible health establishment and regulated care settings.
## Practical Steps & Examples
| Scenario | Could you claim the PSW Tax Credit? |
|---|---|
| You are living in Toronto, working in a nursing home starting 2027 | **Yes**, Ontario isn’t in the excluded list—if your work meets duties and eligible earnings criteria. |
| You work remotely for a Canadian health care firm from Thailand | **No**, physical presence in eligible care establishment in Canada required. |
| You are a nomad who spends 6 months in BC earning PSW hours | **No**, BC has bilateral agreement; credit does **not** apply there. |
## Actionable Insights for Digital Nomads
- If relocating or working in Canada, ensure your PSW work is **recognized by a regulated health care establishment**.
- Track residency status carefully; maintain documentation showing periods of physical presence.
- Determine if you're in an excluded province/territory to assess eligibility.
- Retain records of eligible earnings, employer certifications, and duties performed in case CRA requests proof.
## Why this matters
This tax credit reflects Canada’s intent to support front-line care workers amid labor shortages. For **digital nomads** considering care work in Canada, or those moving temporarily, it’s a potential source of income support, but only if conditions of work and residency are met.
**Bottom line:** If you’re a digital nomad considering health care work in Canada, this tax credit offers value—but only under specific geography and work conditions. Plan carefully to see if you can access it.