Yes, you may still have to pay taxes in Canada while living abroad, depending on your residency status and if you have Canadian-sourced income. If you are a non-resident, you typically pay tax only on income from Canadian sources, such as rental income, pensions, or certain capital gains. You must inform the Canada Revenue Agency (CRA) of your departure.
Overview. If you are a Canadian citizen living in the United States, you do not need to file income taxes in Canada if the Canada Revenue Agency considers you a non-resident, and if you are not receiving any income from Canadian sources.
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.
Definition of the 90% Rule in Canada
The 90% rule states that if 90% or more of your total income comes from Canadian sources, you may be eligible for full federal tax credits, such as the Basic Personal Amount or other refundable and non-refundable credits.
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.
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.
It's important that you tell the CRA the date you leave Canada. Generally, as a non-resident, you are not eligible to receive: the GST/HST credit. the Canada child benefit (CCB) (including those payments from certain related provincial or territorial programs)
Canadians travelling extensively, living or working abroad may still have to pay Canadian and provincial or territorial income taxes.
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.
While you'll pay Canadian taxes on your worldwide income as a Canadian resident, the U.S.-Canada tax treaty, combined with the Foreign Tax Credit and Foreign Earned Income Exclusion, typically eliminates any U.S. tax liability. The challenge isn't paying double taxes—it's filing correctly in both countries.
As a non-resident of Canada, you pay tax on income you receive from sources in Canada. The type of tax you pay and the requirement to file an income tax return depend on the type of income you receive. Generally, Canadian income received by a non-resident is subject to Part XIII tax or Part I tax.
A salary of $100,000 per year means that you would be taking home about $74,303 per year after taxes, or $6,192 per month to pay for things like housing, transportation, groceries, and entertainment. The average household income in Calgary is $129,000.
According to a new study published by the Fraser Institute, in 2024 the average Canadian family (including single people) paid $48,306 in total taxes. Given the average family's total cash income was $114,289 in 2024, this means families paid 42.3 per cent of their incomes in taxes levied by all levels of government.
Therefore, provided you have severed primary residential ties to Canada, it is possible to maintain certain secondary ties to Canada such as maintaining a bank account, investment account or credit card. The date you become a resident of the new country you are immigrating to.
Double taxation happens when two countries tax the same income, like foreign wages or profits. Cut Canadian taxes with a Foreign Tax Credit (CRA) using Form T2209 for amounts paid abroad. Use tax treaties, like the Canada-U.S. agreement, to avoid or reduce double taxes.
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.
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.
Canadians who live or work abroad or who travel a lot may still have to pay Canadian and provincial or territorial income taxes. Visit International and non-resident taxes for information about income tax requirements that may affect you.