Tax implications of moving to the US from Canada

Read on to learn more about how tax residency, departure tax, registered accounts, and ongoing Canada Revenue Agency (CRA) and Internal Revenue Service (IRS) filings may work in your move.

*This guide is not intended as advice – get professional support to navigate the legal and tax implications of moving from Canada to the US, based on your own unique circumstances

Key takeaways

Topic	💡 Why it matters	➡️ What to do next
Tax residency	Decides when Canada may stop taxing worldwide income and when US worldwide taxation may start.	Match your move date, family ties, housing, and US days before filing.
Departure tax	Can create gains on some assets even without a sale.	Review non-registered property early and ask whether deferral matters.
Registered Retirement Savings Plan (RRSP) and Tax-Free Savings Accounts (TFSAs)	Different accounts can face very different US tax and reporting treatment.	Check provider rules, future contributions, and reporting before changing your address.
Ongoing filing	You may still deal with the CRA while the IRS expects worldwide income and foreign account reporting.	Track Canadian income, balances, and year-end statements for both returns.
Professional help	Timing, state tax, and account structure can change the answer.	Get cross-border advice before departure if you have investments, a home, or ongoing Canadian income.

How your tax residency changes when you move ➡️💰

Tax residency matters because it decides where worldwide income may be taxed. Your visa does not automatically make you a US tax resident, and state tax can add another layer after arrival.

Do you pay taxes in both Canada and the US after moving?

You may find you need to pay taxes in both Canada and the US in the year that you relocate. This depends on when Canadian residency ends, when US residency begins, what income you have, and whether credits or treaty relief apply.

When you usually stop being a Canadian tax resident 🇨🇦➡️

The Canada Revenue Agency (CRA) looks first at residential ties. Major ties include a home, spouse or partner, and dependents in Canada, while secondary ties can include bank accounts, health coverage, and licenses.

If you keep a Canadian home or leave family behind, the CRA may still see you as a resident. Review CRA emigrant guidance and keep records showing when your main ties changed.

When you usually become a US tax resident ➡️🇺🇲

The Internal Revenue Service (IRS) says US tax residency usually starts under the green card test or substantial presence test. Immigration status and tax status are related, but not identical.

Some movers have a split year, often called a dual-status year, so one calendar year may involve filings in both countries. The IRS page on residency under US tax law and our guide below can help explain how federal and state rules fit together.

What departure tax means before you leave Canada

Canadian departure tax is a deemed disposition rule. Many readers call this departure tax Canada or exit tax Canada.

Canada may treat certain property as if you sold it at fair market value (FMV) when you stop being a resident, even if you still own it, which is why the move date matters.

Which assets are usually affected by deemed disposition

Included items could be non-registered investments, shares, and some property outside Canada. Common exclusions include many registered plans, cash, and Canadian real estate, but you still need to verify each asset.

Commonly included	Common exceptions
Non-registered investments and shares	RRSPs, RRIFs, TFSAs, cash, and Canadian real estate
Some foreign property or business interests	Some recent immigrants may have special exceptions

Use Dispositions of property for emigrants of Canada to check the current rules, then confirm treatment with a preparer if you have a portfolio, private shares, or assets in more than one country.

When deferral may be possible

Some emigrants can elect to defer tax on departure gains instead of paying it with the departure-year return. Deadlines, forms, and sometimes security requirements can apply, so get help before filing if deferral may matter.

What happens to your TFSA, RRSP, and other taxable accounts after you move?

Account treatment is where many Canada to US tax implications become personal. A Registered Retirement Savings Plan (RRSP), Registered Retirement Income Fund (RRIF), Tax-Free Savings Account (TFSA), Registered Education Savings Plan (RESP), and non-registered account can each create different US tax and reporting questions.

RRSP and RRIF rules after you become a US resident

Many movers keep an RRSP or RRIF after arrival, but withdrawals, reporting, and cost basis tracking can still get complex. The practical issue is also whether your Canadian institution will keep servicing the account once you become US-resident.

Ask your brokerage before changing your address whether trading restrictions will apply. Some firms limit new purchases for US residents after the move.

Why TFSAs, RESPs, and some investments need extra caution

TFSAs are a common source of confusion because tax-free in Canada does not automatically mean tax-free in the United States. RESPs can also create extra US reporting questions, and some Canadian mutual funds or ETFs may need specialist review.

• TFSA: Review post-move contributions and US treatment carefully.
• RESP: Expect extra review on the US side.
• Taxable investments: Keep purchase dates, basis records, and year-end values.

What filing obligations can continue in both countries

Moving does not always end Canadian tax paperwork, and it does not delay US reporting. Once you are a US tax resident, the IRS generally looks at worldwide income, while Canada may still tax certain Canadian-source income after departure. State returns can follow a different calendar and set of rules than federal returns.

How to handle Canadian income, home sales, and account reporting after the move

After the move, Canadian rent, pensions, dividends, or a later sale of a Canadian home or investment can all create new reporting steps. Keep a file with income source, payment dates, sale dates, fair market value records, exchange-rate support, and year-end statements.

Bear in mind also that foreign account reporting may still apply through FBAR or Form 8938.

The IRS page for new immigrants to the United States is a useful starting point. Verify the details before filing, especially if you keep Canadian bank, brokerage, or pension accounts.

What the US – Canada tax treaty can and cannot solve

A common question is whether the treaty means you only file in one country. It does not. The IRS tax treaty overview makes clear that treaties can reduce tax or help resolve conflicting residence claims, but they do not erase every filing duty.

Treaty positions can be sensitive when you have a dual-status year, a state that does not fully follow treaty outcomes, or a residence tie-breaker issue. That is usually the point to bring in a qualified cross-border CPA or tax attorney.

Your first-year checklist for taxes, banking, and money moves

This is where cross-border tax planning becomes a real move plan. Use this checklist before departure, on move date, and during your first filing season. If you are not sure which step to do first, begin with records and dates. Those two items usually drive the rest of the filing work.

1. Confirm the date your main Canadian ties changed.
2. Save statements, trade confirmations, and cost basis records for Canadian accounts.
3. Tell Canadian payers and institutions when your residency changes.
4. List any Canadian income you expect after the move.
5. Open US banking early so payroll and bills are easier.
6. Compare exchange options before moving large or recurring funds.

What to do before and after arrival

Being well prepared for your move is preferable to dashing to complete a last-minute tax cleanup. Here are some things to think about to make the process run as smoothly as possible.

Document, valuation, and account checklist

• Confirm your move date and how many days you were present in each country
• Collect Canadian tax slips, brokerage statements, and employer records for the move year
• Record fair market value for taxable assets around the move date, in CAD
• Review your TFSA, RRSP, taxable investments, and any employer stock plans
• Check payroll setup, tax withholding, and address updates once US work starts
• Save proof of leases, utility starts, canceled services, travel records, and address changes

Banking, exchange rates, and moving money

Banking decisions affect more than convenience. You may need USD for rent, deposits, payroll, and tax payments while also needing to keep access to CAD savings. Cross border money management can be complex, so compare account-opening rules and banking options before you move money.

Major local banks such as Bank of America, Chase, and Wells Fargo may be part of your setup after arrival, but their international transfer costs can include fees and exchange-rate markups.

If you need both currencies during the move, a Wise Account can help you hold CAD and USD, along with 40+ other currencies. Wise international money transfers can also help when you need to send money across the border with mid market rates, low, transparent fees and speedy delivery times.

Using Wise to manage CAD and USD together, easily

If you need to cover deposits, rent, travel, or an emergency fund in two currencies, the Wise Account can help you hold and convert CAD and USD in one place. Hold 40 + currencies in one account and get local account information in 8+ currencies including both CAD and USD, to get incoming transfers conveniently in both currencies.

Wise international money transfers can also be handy to move funds between Canada and the United States with transparent fees and mid-market rates.

Use Wise to set up access to USD receiving accounts early, compare transfer costs before you send larger amounts, and avoid last-minute exchanges made under pressure.

FAQs

Do I still have to file a Canadian tax return after moving to the US?

Most movers file a Canadian departure-year return, and some still have later Canadian filing or withholding obligations if they keep Canadian-source income. After departure, Canada usually focuses on Canadian-source income rather than worldwide income.

Does Canada charge departure tax when I move to the US?

It can. Canada may treat certain property as if you sold it at fair market value when you stop being a resident, which can create capital gains without a real sale. Timing, exemptions, and possible deferral can change the result.

How is an RRSP taxed after I move to the US?

An RRSP does not automatically stay tax-neutral in the United States. Withdrawals, reporting, cost basis, foreign tax credits, provider rules, and state treatment can all matter, so get personalized advice before making changes.

Can you keep Canadian bank accounts after moving to the US?

Many people can, but they may need to update residency details, review cross-border tax Canada US reporting, and decide whether the account still fits life in the United States.

Do I need to report Canadian bank or investment accounts to the IRS?

You may. Once you are a US tax resident, foreign account or asset reporting can apply, including FBAR and Form 8938 in some cases. The thresholds and filing rules differ, so check both if you keep Canadian bank, brokerage, or retirement accounts.

Useful resources

Last checked 26th July 2026

• Leaving Canada (emigrants) – Canada.ca
• Dispositions of property for emigrants of Canada – Canada.ca
• Introduction to residency under US tax law | Internal Revenue Service
• Tax information and responsibilities for new immigrants to the United States | Internal Revenue Service