Canadians leaving the country permanently face a "departure tax"—a deemed disposition of assets—rather than a flat, upfront fee. This tax requires reporting, and potentially paying capital gains tax on, most appreciated property as if it were sold at fair market value on the day they leave.
Departure tax applies to anyone who ceases to be a Canadian tax resident. This could include individuals who: Move to another country permanently. Sever significant residential ties to Canada, such as selling their home, moving their family abroad, or ending memberships in Canadian organizations.
Visitors to the U.S. who do not need a visa, such as Canadian citizens and travelers from Visa Waiver Program countries, are exempt from the $250 fee. The Visa Waiver Program covers countries including Australia, the UK, Japan, Germany, France, South Korea, and several others.
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).
How much is the exit tax? There's no single rate. The IRS treats your worldwide assets as sold and taxes net gains above $890,000 (2025 exclusion) at capital gains rates of 15-20%, plus potential 3.8% Net Investment Income Tax.
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.
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.
Below are four strategies expatriates and their financial advisors may wish to consider employing to reduce the total amount of tax assessed on the expatriating individual.
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.
Beginning October 1, 2025, most international travelers to the United States will be required to pay a new $250 "visa integrity fee" when applying for nonimmigrant visas. The fee applies to visa categories such as B-1/B-2 (tourist/business), F-1 (student), H-1B (temporary worker), and J-1 (exchange visitor).
Yes, Canadian citizens need a valid passport for air travel to the U.S.; for land/sea travel, a passport or other WHTI-compliant document (like an Enhanced Driver's License or NEXUS card) is required, though children under 16 have different rules. Requirements vary by travel mode and age, with air travel being strictest.
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.
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.
If you are traveling with an excess of $10,000, you must report it to a Customs and Border Protection (CBP) officer when you enter or exit the U.S. But there is no limit to the amount of money you can travel with.
Departure tax is owed when an individual departs Canada as the individual is deemed to dispose of assets at their fair market values on the date of the departure. Certain assets such as Canadian real estate properties and registered accounts, including RRSPs and TFSAs, are exempt from these departure tax rules.
For a $70,000 income in Canada (using 2025 rates), you'll pay roughly $13,000 to $20,000 in total taxes (federal, provincial, CPP, EI), depending on your province, resulting in a take-home pay around $50,000-$59,000, with federal tax around 14.5% or 20.5% depending on the portion, plus provincial tax and deductions like CPP and EI.
Canadians travelling extensively, living or working abroad may still have to pay Canadian and provincial or territorial income taxes.
The "$10,000 bank rule" refers to federal laws requiring financial institutions and businesses to report large cash transactions (deposits, withdrawals, payments) of over $10,000 in currency to the government to combat money laundering and financial crimes. Banks file Currency Transaction Reports (CTRs) for cash activity over $10,000, while businesses file Form 8300 for similar payments, both sending info to FinCEN and the IRS to track illicit funds.
To remain eligible for your Canadian provincial/territorial government health insurance, you cannot travel outside your province/territory of residence for a total of more than 7 months (212 days) within a year, or 6 months (183 days) if you live in Quebec, PEI or Nunavut. This includes travel within Canada.