Hi All, I am in Canada past 3yrs from USA. my first 2yrs on work permit and the last 1year on resident. As per terms One should legally stay in Canada for 3yrs to apply citizenship, is that right? if so, Can I apply for it or need to wait for another year? thanks in advance.

http://services3.cic.gc.ca/rescalc/resCalcStartNew.do?&lang=en

The above link gives you the info regarding the days that count towards citizenship eligibility.

Excerpt:

When calculating your time in Canada:

Please note that you cannot meet the residence requirements for citizenship without a minimum of two (2) years as a permanent resident.

* only the four (4) years preceding the date of your application are taken into account;
* each day you lived in Canada before you became a permanent resident counts as half a day;
* each day you lived in Canada after you became a permanent resident counts as one day;
* time spent serving a sentence for an offence in Canada (e.g. prison, penitentiary, jail, reformatory, conditional sentence, probation and/or parole) cannot be counted toward residence - there are some exceptions to this rule;
* absences from Canada may have an impact on your residence. Only a citizenship judge can determine if you meet the residence requirements with fewer than 1,095 days of physical presence.

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Dimple2001