Moving to Canada from the US

US Tax Obligations After You Move

The US is one of two countries (the other is Eritrea) that taxes citizens on worldwide income regardless of where they live. Moving to Canada does not end your US tax filing requirement. You will file both a US federal return (Form 1040) and a Canadian T1 return every year you remain a US citizen or green card holder.

The US-Canada Tax Treaty

The treaty prevents double taxation but does not prevent double filing. You'll use Foreign Tax Credits (Form 1116) or the Foreign Earned Income Exclusion (Form 2555) to offset taxes paid to Canada against your US liability. Because Canadian federal and provincial tax rates are generally higher than US rates for middle and upper incomes, most Americans in Canada owe little or nothing additional to the IRS. But you still must file.

FBAR and FATCA Reporting

If your combined balances in Canadian bank accounts exceed $10,000 at any point during the year, you must file FinCEN Form 114 (FBAR) electronically by April 15. Separately, FATCA requires Form 8938 if your foreign financial assets exceed $200,000 (for single filers living abroad) at year-end. Canadian banks will also report your accounts to the IRS under FATCA's intergovernmental agreement. The penalties for missing FBAR filings start at $10,000 per account per year for non-willful violations.

State Tax Returns

File a final part-year resident return for your departure year. Most states stop taxing you once you establish domicile elsewhere. California is the notable exception: the Franchise Tax Board is aggressive about claiming continued residency and may require you to prove you severed ties (sold property, moved belongings, changed voter registration). If you're leaving California, document everything.

Green Card Holders and Exit Tax

If you're a green card holder (not a citizen) and have held the card for 8 of the last 15 years, you may be classified as a "long-term resident" under IRC Section 877A. Abandoning your green card triggers an exit tax: you're treated as if you sold all worldwide assets at fair market value the day before expatriation. The 2026 exclusion amount is approximately $886,000, but assets above that threshold generate a real tax bill. File Form 8854 with your final return.

RRSP and TFSA Complications

Under the treaty, the US recognizes Canadian RRSPs for tax deferral purposes if you file Form 8891 (or make the appropriate election). TFSAs, however, are not recognized by the IRS. The US taxes TFSA income annually. Most cross-border tax advisors recommend Americans in Canada avoid TFSAs entirely and maximize RRSP contributions instead.

Healthcare Transition

Canada's public healthcare system is administered provincially, not federally. Each province runs its own plan with its own enrollment rules, and there is a waiting period before coverage begins.

Waiting Periods by Province

Ontario eliminated its three-month waiting period in 2020, so OHIP coverage begins on the date you establish residency. British Columbia's MSP also starts on your date of residency with no waiting period as of 2024. Alberta has a three-month wait. Quebec's RAMQ starts on the first day of the third month after you establish domicile. Check your specific province, because these rules change.

Interim Private Insurance

For provinces with waiting periods, buy private health insurance for the gap. Manulife CoverMe and Blue Cross offer visitor-to-Canada plans that cover emergency care, hospitalization, and some outpatient services. Expect to pay $150-300/month depending on age. Do not go without coverage during the waiting period. A single ER visit in Canada without provincial coverage can cost $5,000-10,000.

What Provincial Healthcare Covers (and Doesn't)

Provincial plans cover physician visits, hospital stays, and medically necessary procedures. They generally do not cover prescription drugs (outside hospitals), dental, vision, physiotherapy, or mental health counseling. Most employed Canadians get supplemental coverage through employer benefits plans. If you're self-employed or your employer doesn't offer benefits, budget $200-400/month for private supplemental insurance or pay out of pocket.

Prescription Drug Costs

Prescription pricing in Canada is regulated by the Patented Medicine Prices Review Board. Most brand-name drugs cost 30-50% less than US cash prices. Generic availability is comparable. However, without supplemental insurance, you pay full retail at the pharmacy. Each province has programs for low-income residents and seniors. If you take specialty medications, verify Canadian availability before you move, as some US-approved drugs aren't available in Canada or have different brand names.

Medicare

US Medicare does not cover care received in Canada (with rare border-area exceptions). If you're already on Medicare, you can maintain Part A (hospital) premium-free and re-enroll in Part B if you return. If you're not yet 65, the years you work in Canada won't count toward Medicare eligibility unless you're also paying US self-employment tax. The US-Canada Social Security totalization agreement can help you qualify for Medicare if you combine work credits from both countries.

Visa Pathways for Americans

TN Visa (USMCA, formerly NAFTA)

The fastest path for Americans in qualifying professions. TN status covers about 60 occupations listed in Chapter 16 of USMCA, including engineers, accountants, computer systems analysts, scientists, management consultants, and registered nurses. You apply at the Canadian port of entry with a job offer letter from a Canadian employer, proof of qualifications (degree, license), and the $160 CAD processing fee. No labor market test required. Approval is typically same-day. TN status is valid for up to three years and renewable indefinitely, but it's non-immigrant status with no direct path to permanent residency while you hold it.

The catch: if you apply for permanent residency while on TN status, you need to demonstrate "dual intent" isn't an issue at your next renewal. Many immigration lawyers recommend transitioning to a work permit under a different category before filing for PR.

Express Entry

Canada's points-based permanent residency system. The Comprehensive Ranking System (CRS) scores candidates on age, education, language proficiency (English and/or French), and work experience. A score above 470-490 has been competitive for Federal Skilled Worker draws in recent rounds. Americans have an advantage if they're young (under 35), have a master's degree or higher, and score well on the IELTS or CELPIP English test. Yes, you need to take an English proficiency exam even as a native speaker.

Processing time from Invitation to Apply (ITA) to PR card is currently 6-8 months for most applicants.

Provincial Nominee Programs (PNPs)

Each province runs its own nomination program targeting specific skills gaps. BC's Tech stream, Ontario's Human Capital Priorities, and Alberta's Accelerated Tech Pathway are popular with American tech workers. A provincial nomination adds 600 CRS points to your Express Entry profile, effectively guaranteeing an ITA. Some PNPs have lower requirements than the federal program and can be a better route if your CRS score is below the cutoff.

Spousal/Family Sponsorship

If your partner is Canadian, they can sponsor you for permanent residency. Inland sponsorship (applied for while you're already in Canada) lets you apply for an open work permit while the PR application is processed, typically 12-18 months. Outland sponsorship (applied from the US) is processed at a similar timeline but you don't get interim work authorization in Canada.

Intra-Company Transfers

If your US employer has a Canadian office (or is opening one), you may qualify for an ICT work permit. You need to have worked for the company for at least one year in the past three years in a managerial, executive, or specialized knowledge role. This is common for tech companies with offices in Toronto, Vancouver, or Montreal.

Banking and Finances

Cross-Border Banking

TD Bank and RBC both operate on both sides of the border, making them the default choices for Americans moving to Canada. TD's cross-border banking lets you link US and Canadian accounts and transfer funds between them at preferential exchange rates. RBC offers a similar service. Open your Canadian account before you move if possible. Most Canadian banks will let you start the process remotely with a valid passport and proof of upcoming Canadian address.

Keep Your US Accounts

Maintain at least one US bank account and one US credit card. You'll need them for US tax payments, any remaining US financial obligations, and trips back. Some US banks will close accounts of customers with non-US addresses, so use a family member's address or a mail forwarding service for your US banking address. Charles Schwab and Fidelity are generally friendly to expat customers.

Currency Considerations

The CAD/USD exchange rate has fluctuated between 0.70 and 0.80 over the past decade. If you're transferring a large sum (home down payment, savings), use Wise (formerly TransferWise), OFX, or your cross-border bank's transfer service rather than a standard wire transfer. The difference in exchange rate markup on a $100,000 transfer can be $1,500-3,000.

Retirement Accounts

Your US 401(k) and IRA accounts remain valid and continue to grow tax-deferred under the treaty. Do not cash them out when you move. Early withdrawal penalties and immediate taxation apply just as they would in the US. When you eventually take distributions, the US will tax them as income and Canada will give you a foreign tax credit.

Canadian RRSPs are the equivalent of a traditional IRA. As mentioned in the tax section, the US recognizes RRSP deferrals under the treaty. Contribute to your RRSP from Canadian employment income. Do not contribute to a TFSA.

Social Security

The US-Canada Social Security totalization agreement lets you combine work credits from both countries to qualify for benefits from either or both. If you've worked 10+ years in the US, you'll qualify for US Social Security benefits regardless of where you live. Canada will not tax your US Social Security benefits (under the treaty). Your Canadian Pension Plan (CPP) contributions will build toward a separate Canadian retirement benefit.

Credit History

Your US credit score does not transfer to Canada. You start from zero. Some Canadian banks (RBC, HSBC Canada) offer newcomer programs with unsecured credit cards and preferential mortgage terms for new residents. Bring reference letters from your US bank and recent credit reports. Building a Canadian credit score takes 6-12 months of on-time payments.

Moving Logistics

Customs and Importing Household Goods

When you arrive in Canada as a new permanent resident or long-term temporary worker, your personal and household effects enter duty-free under the "Settler's Effects" provisions. You'll fill out Form BSF186 (Personal Effects Accounting Document) listing everything you're bringing. Items you owned and used before moving are duty-free. Items purchased specifically for the move may be dutiable. Keep receipts for major items.

If you're shipping goods that arrive after you do, declare them on Form BSF186A (Goods to Follow) at your port of entry. You have one year to bring in goods to follow under the same duty-free provisions.

Importing a Vehicle

US-spec vehicles can be imported to Canada, but the process is not trivial. First, check the Registrar of Imported Vehicles (RIV) admissibility list to confirm your vehicle is eligible. You'll need to meet Canadian safety standards (Transport Canada) and emissions standards. Common requirements include daytime running lights (most post-2000 US vehicles have these) and metric speedometer markings (a dealer can add metric markings or you can get a replacement cluster). Budget $2,000-4,000 for the import process including the RIV fee ($295+), provincial inspection, and any required modifications. Vehicles less than 15 years old must go through this process. Vehicles 15+ years old are exempt from safety standards.

Driver's License

Most provinces have reciprocal agreements with US states allowing a direct license exchange without retesting. Ontario, BC, and Alberta all accept valid US licenses for a direct swap. Bring your US driving record from your state DMV. You typically have 60-90 days after establishing residency to convert. After that, you may face fines for driving on a foreign license. International Driving Permits are not needed for Americans in Canada.

Pets

Dogs and cats entering Canada from the US need a rabies vaccination certificate from a licensed veterinarian showing vaccination at least 30 days before entry (and not expired). That's it for most pets. No quarantine, no import permits for dogs and cats. Birds, reptiles, and exotic animals have additional requirements through the Canadian Food Inspection Agency. If your pet is on prescription food or medications, verify Canadian availability.

Shipping

For a full household, most Americans use international moving companies like Allied, United, or Atlas Van Lines, which handle customs paperwork. Transit time from major US cities to Toronto or Vancouver is 5-10 business days for ground shipping. Get at least three quotes. The cost for a three-bedroom household moving from the US Northeast to Toronto runs $8,000-15,000 depending on volume and services. West Coast to Vancouver is typically cheaper due to proximity.

Cell Phone

Canadian wireless plans are significantly more expensive than US plans. Expect to pay $50-80 CAD/month for a plan with 20-50GB of data. Major carriers are Bell, Rogers, and Telus, with budget options from Fido, Koodo, and Freedom Mobile. T-Mobile's international plans include Canada at no extra cost, which can be useful during the transition. Port your US number to Google Voice ($20 one-time fee) before canceling your US plan so you can keep it for two-factor authentication and US contacts.

Cultural Adjustment

Healthcare System

The biggest adjustment for most Americans is how the healthcare system works in practice. You don't choose an insurance plan. You get a provincial health card and use it everywhere. There are no networks, no copays for physician visits, and no surprise bills. The tradeoff is wait times. Getting a family doctor can take months in some provinces (especially BC and Ontario). Walk-in clinics and urgent care handle non-emergency needs. Emergency rooms prioritize by severity, not arrival time, so a non-urgent ER visit can mean a 4-8 hour wait.

Weather

If you're moving from the Sun Belt, you are not prepared for a Canadian winter. Toronto's winters are comparable to Chicago. Montreal and Ottawa are significantly colder, with January averages around -10°C (14°F). Vancouver is the mild exception, with rain instead of snow but grey skies for months. Invest in proper winter gear before your first winter: insulated boots rated to -30°C, a down parka, thermal layers, and quality gloves. Budget $500-800 for winter clothing if you're starting from nothing. Seasonal Affective Disorder is real and common. A light therapy lamp helps.

The Metric System

Canada officially uses metric, but in practice it's a hybrid. Temperature and distance (road signs) are in Celsius and kilometers. But many Canadians describe their height in feet and weight in pounds. Real estate listings use square feet. Cooking recipes vary. You'll get used to it, but expect a transition period of converting in your head. For driving: 100 km/h = 62 mph. For temperature: 0°C = 32°F, 20°C = 68°F, 30°C = 86°F.

Tipping

Tipping culture is nearly identical to the US. 15-20% at restaurants, $1-2 per drink at bars, 15-20% for hairdressers and taxis. This won't be an adjustment.

Political Culture

Canada's political spectrum is shifted left relative to the US. The Conservative Party of Canada's platform roughly aligns with moderate Democrats on many social issues. Universal healthcare, gun control, and strong environmental regulations have broad consensus across the political spectrum. If you're moving to Canada because of US politics, understand that Canadian politics has its own tensions (housing affordability, indigenous reconciliation, immigration policy) that don't map neatly onto American categories.

Day-to-Day Differences

Milk comes in bags in Ontario (you'll get used to it, or just buy cartons). Debit payments use Interac, not Visa/Mastercard debit. E-transfers between bank accounts are instant and free, replacing Venmo/Zelle. Sales tax (GST + provincial) is added at the register, not included in the sticker price, just like the US. The legal drinking age is 18 or 19 depending on the province.