Leaving Canada? See How Much You'd Keep
With combined federal-provincial rates reaching 53%, Canadian high earners lose more than half of every additional dollar. Compare your take-home pay across 12 low-tax destinations.
Annual Savings by Destination
Estimated additional take-home pay compared to staying in Canada, based on C$200,000 CAD annual income.
| Destination | Est. Annual Savings |
|---|---|
| 🇬🇪Georgia | +C$95,000 |
| 🇲🇾Malaysia | +C$92,000 |
| 🇻🇺Vanuatu | +C$92,000 |
| 🇵🇦Panama | +C$88,000 |
| 🇦🇪UAE | +C$75,000 |
| 🇧🇸Bahamas | +C$72,000 |
| 🇹🇨Turks & Caicos | +C$72,000 |
| 🇰🇾Cayman Islands | +C$68,000 |
| 🇹🇭Thailand | +C$58,000 |
| 🇵🇹Portugal | +C$48,000 |
| 🇸🇬Singapore | +C$47,000 |
| 🇲🇨Monaco | +C$46,000 |
Calculate Your Exact Savings
Enter your income and see a side-by-side breakdown for every destination in under 30 seconds.
Open the Calculator →Canada's Departure Tax (Deemed Disposition)
Under Section 128.1 of the Income Tax Act, when you emigrate from Canada, the CRA deems you to have disposed of most capital property at fair market value immediately before departure. This triggers capital gains tax on unrealised gains across stocks, crypto, real estate (excluding your principal residence), and other capital property.
Capital gains in Canada are included in income at a 50% inclusion rate for the first $250,000 of gains in a year, and at a 66.7% inclusion rate for gains above that threshold. The included portion is then taxed at your marginal rate. Taxpayers can post security with the CRA to defer payment on certain property types, but the tax liability is still calculated at departure.
Becoming a Canadian Tax Non-Resident
The CRA determines residency based on residential ties to Canada. Primary residential ties include having a home available in Canada and having a spouse or dependants who remain in Canada. Secondary ties include Canadian bank accounts, a Canadian driver's licence, provincial health insurance, and social or professional memberships.
To establish non-residency, you should sever as many of these ties as possible. This typically means selling or renting out your Canadian home, cancelling provincial health coverage, and updating your driver's licence. Filing Form NR73 (Determination of Residency Status) with the CRA can provide confirmation of your departure date, though it is not mandatory.
Why Canadian High Earners Are Leaving
Canada's federal top rate of 33% applies to income above $246,752, but provincial rates stack on top. In provinces like Ontario the combined top rate reaches 53.53%, and even in Alberta (the lowest-tax province) the combined rate is 48%. For high earners in tech, finance, or professional services, the annual tax bill regularly exceeds $100,000.
The capital gains inclusion rate increase to 66.7% above $250,000 (effective June 2024) has further accelerated interest in relocation, particularly among founders and investors with significant unrealised gains. Combined with Canada's high housing costs and limited tax planning options, many professionals are evaluating whether the numbers justify staying.
Frequently Asked Questions
What is Canada's departure tax?
Under Section 128.1 of the Income Tax Act, the CRA deems you to have sold most capital property at fair market value when you emigrate. This triggers capital gains tax on unrealised gains. You can post security to defer payment on some asset types, but the liability is calculated at departure.
How do I become a Canadian tax non-resident?
Sever your residential ties: dispose of or rent out your Canadian home, cancel provincial health insurance, update your licence, and close Canadian accounts where possible. Filing Form NR73 with the CRA can confirm your departure date. The CRA evaluates the totality of your ties.
Do I still pay Canadian tax after leaving?
Non-residents pay Canadian tax only on Canadian-sourced income. This includes rental income from Canadian property, certain pension payments, and employment income earned in Canada. Passive income like dividends is subject to Part XIII withholding tax, typically 25% but often reduced by tax treaties.
Is the capital gains inclusion rate really 66.7%?
As of June 2024, capital gains above $250,000 in a single year are included in income at 66.7% (up from 50%). The first $250,000 of gains remains at the 50% inclusion rate. The included amount is then taxed at your marginal rate, which can bring the effective rate on large gains above 35%.