There is no specific flat fee or "departure penalty" to leave Canada, but residents leaving permanently may face a "departure tax" on deemed capital gains. This applies to the increased value of certain assets (like stocks or businesses) as if they were sold on the day you cease to be a tax resident.
When you cease to be a tax resident of Canada, you must file a “departure” tax return. A departure tax return reports your worldwide income up to the date of your departure from Canada, a “deemed” disposition of most of your assets, and a disclosure of the assets you held at the time of your departure.
Introducing an exit tax of 35% on all household net worth over $10 million upon renouncing Canadian tax residency, effective July 1st, 2025.
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).
The best way to “beat” the exit tax is to avoid becoming a Covered Expatriate in the first place. If you don't trigger any of the three tests (Net Worth, Tax Liability, or Compliance), you can leave the U.S. tax system without paying a “deemed sale” tax on your assets.
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!)
The short answer: civil debts like credit cards, student loans, bank loans, and even unpaid CRA tax debts will not get you detained at the border.
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.
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.
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.
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 fee may vary depending on the complexity of the clearance, volume, and required documentation. They cover fees for processing customs documentation, administrative overheads, inspections and handling fees, port security charges, and any special compliance surcharges.
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.
The proposed “exit tax” – also referred to as a “settling-up charge” – would impose a 20% levy on unrealised gains from UK business assets when an individual ceases to be UK tax resident. This would include shares in private companies and other financial instruments, even if they are not sold at the time of departure.
You're required to file a tax return in the year you leave Canada if you have a tax balance owing or you'd like to receive a tax refund. In the tax year you leave, complete the general income tax and benefit package for your province or territory of residence on the day you emigrated from Canada.
Canadians travelling extensively, living or working abroad may still have to pay Canadian and provincial or territorial income taxes.
Dual tax residency occurs when an individual is considered both a resident and non-resident of the United States within the same tax year. This typically happens during the first year of arrival or departure from the US and requires filing separate tax returns for resident and non-resident periods.
Whether you choose to pay an old debt is up to you. It will fall off your credit after seven years, but collection agencies can still call. If you want to stop the calls, you can offer to settle.
The 11-word phrase often cited to stop debt collectors is "Please cease and desist all calls and contact with me, immediately," which leverages your rights under the Fair Debt Collection Practices Act (FDCPA) to halt most communication, though it must be sent in writing via certified mail to be legally binding, and collectors can still notify you of lawsuits.
Key Ways to Avoid Exit Tax
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.