Yes, you must inform the Canada Revenue Agency (CRA) when you leave Canada, specifically by indicating your date of departure on your final tax return. You may need to pay a "departure tax" on certain properties, file Form T1161 if you own significant property, and inform payers to update your residency status.
CBSA Entry and Exit Records
Every time you cross the Canadian border by air, land, or sea, the Canada Border Services Agency (CBSA) logs the date, location, and direction of travel. Since 2019, these detailed records have been stored in a centralized database and are fully accessible to the CRA.
What to declare. Whether you are leaving or entering Canada, you must declare any currency (cash) or monetary instruments (i.e. cheques, money orders, bank drafts, etc.) valued at CAN$10,000 or more that you are carrying. This amount includes Canadian or foreign currency or a combination of both.
Canada's 183-day rule is a key factor in determining tax residency: if you stay in Canada for 183 days or more in a calendar year, you're generally considered a resident for tax purposes for that entire year (a "deemed resident"), even if you don't have strong ties, subjecting your worldwide income to Canadian tax. However, this rule works alongside Canada's complex residency tests and tax treaties, meaning you might become a resident sooner with significant ties (like family or property) or avoid it if a treaty designates you a resident of another country.
In actual fact, you can be absent from Canada as long as you want. The Canadian government recognizes that citizens may travel extensively, work or study abroad. You will always maintain your Canadian citizenship. What absentia may affect is your Canadian health care coverage and income tax.
There Is No “Six-Months-Per-Year Rule” for Canadians. Many Canadians mistakenly believe they may only spend six months each year in the United States. The truth: There is no U.S. rule limiting Canadians to six months total per year.
Because CPP is a "member-contributed plan" it will always be yours, regardless of where you live in the world. If you paid in at least 1 CPP contribution, you are entitled to a benefit. OAS, on the other hand, comes out of the general tax revenues.
The 183-day rule
When you calculate the number of days you stayed in Canada during the tax year, include each day or part of a day that you stayed in Canada. These include: days that you attended a Canadian university or college. days that you worked in Canada.
Canadians travelling extensively, living or working abroad may still have to pay Canadian and provincial or territorial income taxes.
Generally, CRA can only audit someone up to four years after a tax return has been filed, although, in some cases, such as cases of suspected fraud or misrepresentation, CRA can go farther back and there is no time-limit for the re-assessment.
Travel Outside Canada
Under 12 CFR 21.11, national banks are required to report known or suspected criminal offenses, at specified thresholds, or transactions over $5,000 that they suspect involve money laundering or violate the Bank Secrecy Act.
When entering the United States, what items must I declare?
If you want the CRA's opinion on your residency status, complete Form NR74, Determination of Residency Status (entering Canada), or Form NR73, Determination of Residency Status (leaving Canada), whichever applies.
The Government of Canada collects biographic entry information on all travellers entering the country, but currently has no reliable way of knowing when and where they leave the country.
Any time you enter or leave Canada, you must declare any money or monetary instruments, such as stocks, bond or cheques that you are carrying valued at $10,000 or more.
Canada's 90% rule helps non-residents and recent immigrants claim full federal tax credits (like the Basic Personal Amount) if 90% or more of their net worldwide income for the relevant tax year is from Canadian sources; otherwise, credits are prorated (reduced) based on their Canadian residency period, ensuring fairness for those who weren't residents all year.
When you leave Canada, you are considered to have sold certain types of property (even if you have not sold them) at their fair market value (FMV) and to have immediately reacquired them for the same amount. This is called a deemed disposition and you may have to report a capital gain (also known as departure tax).
As a Canadian expat living, working or traveling overseas, you will not have access to many government-funded healthcare services. Therefore, you need extra health care insurance to bridge the gap. A comprehensive global health plan can help you get access to these medical services.
Taxing Canadian-source income. As a non-resident of Canada, you are subject to Canadian income tax on most Canadian-source income paid or credited to you during the year unless all or part of it is exempt under a tax treaty.
Under the order, the U.S. Department of Homeland Security must ensure that all non-Americans staying in the country for more than 30 days register with the government. Canadians staying in the U.S. for more than 30 days must complete an I-94 form and register with U.S. Citizenship and Immigration Services upon entry.
Quick Takeaways. Dual citizens must file taxes in both the U.S. (worldwide income) and Canada (residency-based). Use the U.S.–Canada tax treaty to avoid double taxation through credits and exemptions. Key forms include Form 1040, FBAR, and Form 8938 for the IRS; T1 and T1135 for the CRA.
Leaving or returning to Canada
Your Old Age Security (and Guaranteed Income Supplement) may stop if you're away for more than 6 months and don't qualify for receiving your payments while outside Canada.
Introducing an exit tax of 35% on all household net worth over $10 million upon renouncing Canadian tax residency, effective July 1st, 2025.