Moving to Canada from the US: Tax Checklist for Americans

Moving to Canada is exciting, but the tax implications start before you leave. Canada's worldwide income taxation and the US-Canada tax treaty create unique pre-move planning needs. This checklist covers the key tax steps before, during, and after your move.

Before You Move (3-6 months before)

State Tax Exit

• If you live in California, New York, or another aggressive state, plan your exit carefully
• Surrender your driver's license and obtain a new one
• Cancel voter registration
• Sell or rent out property
• Close or minimize bank accounts in your former state
• Consider establishing residency in a no-tax state before moving abroad

FEIE Planning

• Understand the physical presence test (330 days outside the US in a 12-month period)
• Plan your move date to maximize your first-year FEIE
• Keep detailed travel records from day one

RRSP/TFSA Planning

• Understand that RRSP contributions may be deductible on your US return (unique treaty benefit)
• Understand that TFSA is NOT tax-free in the US
• Plan your Canadian retirement savings strategy before moving

Totalization Agreement

• The US-Canada totalization agreement prevents double social security taxation
• If you are self-employed, obtain a certificate of coverage

Banking

• Plan for Canadian bank account opening (requires SIN)
• Keep at least one US bank account open
• Understand FBAR reporting requirements (including RRSPs and TFSAs)

First Year Filing

Partial-Year FEIE

In your first year abroad, you may qualify for partial-year FEIE.

Canadian Tax Residency

You become a Canadian tax resident if you establish significant residential ties (home, spouse, dependents in Canada) or if you spend more than 183 days in Canada.

FBAR

File FBAR for all foreign accounts, including Canadian accounts (bank accounts, RRSPs, TFSAs), if the aggregate value exceeds $10,000.

Establishing Canada Tax Residency

• Obtain SIN (Social Insurance Number)
• Open a Canadian bank account
• Register with CRA (Canada Revenue Agency)
• Register with provincial health insurance

Common Pre-Move Mistakes

1. Not planning state tax exit — California and New York can follow you abroad for years.
2. Not tracking travel days — You need 330 days outside the US for the physical presence test.
3. Not understanding RRSP/TFSA US tax treatment — RRSP may be deductible; TFSA is not tax-free.
4. Not reporting Canadian bank accounts, RRSPs, and TFSAs on FBAR — All foreign accounts are reportable.
5. Assuming Canadian healthcare is immediately available — Provincial health insurance has waiting periods.

Timeline Checklist

3 months before:

• Plan state tax exit strategy
• Research RRSP/TFSA strategy
• Obtain SIN (can be done after arrival)
• Set up travel tracking system

1 month before:

• Surrender state driver's license (if needed)
• Cancel state voter registration
• Document your move
• Obtain certificate of coverage (if self-employed)

First month in Canada:

• Obtain SIN
• Open Canadian bank account
• Register with CRA
• Apply for provincial health insurance

First tax season:

• File US tax return with FEIE/FTC
• File FBAR (including RRSPs and TFSAs)
• File Canadian tax return (if resident)
• Make quarterly estimated tax payments (if self-employed)

When to Get Professional Help

You should consider professional help before you move, especially if you live in a high-tax state, have complex income, or are considering RRSP/TFSA strategy.

FileAbroad reviews each engagement personally.

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FileAbroad explains U.S. federal tax and U.S. international information-reporting consequences of documented foreign facts. It does not provide foreign-country legal or tax representation, valuation opinions, banking or remittance advice, or advice on what a foreign authority will accept.

Scope statement reviewed 2026-08-30 · FileAbroad product/content owner