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 the long-standing 50% inclusion rate. The Trudeau-era proposal to raise this to 66.67% on gains above $250,000 was cancelled by the Carney government in March 2025. 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.
Recent Canada Tax Changes for 2025-26
Several recent reforms have shifted the calculus for Canadians weighing a move abroad. Here are the key developments:
Capital Gains Inclusion Rate Reversal (March 2025): The Carney government cancelled the Trudeau-era proposal to increase the capital gains inclusion rate from 50% to 66.67% on individual gains above $250,000. The inclusion rate stays at 50% for individuals, restoring the long-standing baseline.
Underused Housing Tax (UHT): An annual 1% tax on vacant or underused residential property owned by non-resident, non-Canadian owners. This affects Canadians who become non-resident while still owning Canadian residential property — annual UHT returns and potential tax exposure must be planned for.
Foreign Income Verification (T1135): Canadians with specified foreign property over $100,000 CAD (cost basis) must file Form T1135 annually. Penalties for non-compliance start at $25/day and escalate quickly — an important consideration when building offshore holdings before departure.
Departure Tax Reminder: Subsection 128.1(4) ITA still triggers a deemed disposition of most property — excluding Canadian real estate, RRSPs, TFSAs, and certain other excluded property — at fair market value when you cease to be a Canadian tax resident. Capital gains tax on unrealised appreciation is owed in your final return.
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.
Combined with Canada's high housing costs and limited tax planning options, many professionals are evaluating whether the numbers justify staying. With remote work normalised across the tech and financial sectors, jurisdictions where the same income yields significantly more take-home pay are drawing growing interest.
Compare Canada vs Low-Tax Destinations
See detailed tax breakdowns at multiple income levels for the most popular destinations for Canadian expats:
Essential Tools for Expats
Services that make the transition easier
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.
What is Canada’s capital gains inclusion rate?
The inclusion rate is 50% — the long-standing baseline. The June 2024 Trudeau-era proposal to raise the rate to 66.67% on individual gains above $250,000 was cancelled by the Carney government in March 2025. The included portion is then taxed at your marginal rate.