Yes, Canada has a "departure tax," a form of exit tax that treats most capital assets as if they were sold at fair market value the day before you stop being a tax resident, taxing accrued capital gains. This applies to worldwide assets (with exceptions like Canadian real estate, RRSPs, and TFSAs), effectively collecting tax on gains built up while you were a resident, though deferral is possible by providing security to the CRA.
Departure tax
When you leave Canada, you are deemed to dispose of all of your property at its fair market value immediately before you cease to reside in Canada (even if you have not actually sold it). This deemed disposition triggers a departure tax on the gain accrued on this property before your departure.
In many cases, this fee is automatically included in your airfare, while some countries require you to pay at the airport before boarding. 🔍 How to Check if You Need to Pay a Departure Tax: 💡 Look at your airline ticket breakdown – if listed, it's already included.
Can You Avoid Paying the US Exit Tax? Yes — with the right tax planning, many expats can avoid or reduce exit tax liability. The exit tax applies only if you are a covered expatriate, and there are clear strategies to stay out of this category.
Departure taxes are included in most air ticket prices, depending on which airline. Paid in cash upon departure.
You'll need to pay a departure tax when you fly back from some countries. In many instances, many passengers will be unaware that they have paid departure tax, as it is often added to the price of a plane ticket. But in some cases, you will need to make sure you've got the correct money (in the correct currency!)
For all Canadian domestic flights excluding Quebec, HST applies to base fare, Nav and Surcharges, AIF, and ATSC charges. For all flights commencing in the province of Quebec, GST applies to base fare, Nav and Surcharges, AIF (in Quebec), and ATSC charges. For all transborder flights, HST is applied to AIF charges.
Avoid Covered Expatriate Status
Find ways to bring your net worth below $2,000,000. Find ways to bring your average income tax liability for the previous five years to a number below the inflation-adjusted threshold that applies to you. And, most of all, fix any noncompliance in tax returns for the five prior years.
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.
Failure to comply with exit tax and expatriate U.S. federal tax obligations can result in substantial penalties and potential criminal liability. For instance, unless reasonable cause applies, a $10,000 penalty may apply to a failure to timely file a correct and complete Form 8854 when required for any tax year.
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.
Introducing an exit tax of 35% on all household net worth over $10 million upon renouncing Canadian tax residency, effective July 1st, 2025.
Holding a green card for 8+ years may trigger exit tax liability. You must formally file Form I-407 to abandon your green card. Proper timing and compliance can help you avoid covered expatriate status. Strategies like consolidating accounts and avoiding PFICs can ease the tax burden.
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.
Most types of property are subject to departure tax, but there are important exemptions: Tax-Deferred Accounts: Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs) are exempt from departure tax, meaning you won't owe tax on these assets until you make withdrawals.
Do I have to file U.S. taxes if I no longer live in the United States? Yes. Living abroad permanently does not end U.S. tax obligations. As long as you are a U.S. citizen or green card holder, you generally must continue filing U.S. tax returns each year.
A departure tax is a fee charged by a country when a traveler leaves its borders. Depending on the country and its rules, the fee may be included in an airline ticket's price or paid separately at the airport or immigration desk.
The amount of the California exit tax is 0.4% of an individuals' net worth over $30,000,000 in a tax year, no matter where it's located—within CA, other states within the US, or overseas. This amount is halved to $15,000,000 if a married taxpayer files a separate return to their spouse.
Short-term tourists: Typically exempt from paying travel tax. Business travelers: Depending on their visa type, they may be subject to the full travel tax or eligible for exemptions. Foreign residents departing temporarily: Must confirm their visa type to determine whether they qualify for an exemption.
If you are responsible for the support of family members other than a spouse or your minor children, you may have overlooked the following eligible credits:
Guests and AIFs
The Airport Improvement Fee (AIF) is used for paying for improvements and expansions of YYC Calgary International Airport, including the associated debt. These are necessary to keep pace with the air transportation needs of our growing city and province.