American Expat's Money Guide: Canada
Transfers, banking, and US + local taxes for Americans in Canada. Currency: CAD.
The quick answer
- US tax treaty
- Yes
- Totalization (SS) agreement
- Yes
- Special expat tax regime
- None
- Bank account as a US citizen
- Yes
Local top marginal income-tax rate (headline): 33%. Effective rates depend on income, residency status, and any special regime. Figures here are general and can change — verify against current law before relying on them.
Informational only — not financial, tax, or legal advice. Cross-border tax is fact-specific; confirm with a qualified cross-border CPA or adviser before acting. Some links are affiliate links — we may earn a commission at no extra cost to you. Full disclaimer.
Cost of living vs. New York City
Canada is about 37% cheaper overall
Typical 1-bed city-centre rent: $1,652/mo. Compare cost of living →
Approximate — Numbeo, NYC = 100, as of 2026-06.
1 Moving your money (USD → CAD)
USD→CAD is one of the deepest, most liquid FX corridors; bank wires are costly, so expats commonly use mid-market specialists for tighter rates.
See exactly what your amount costs across the mid-market rate, a typical bank, and a specialist — then send with the cheapest.
2 Banking as an American in Canada
Major banks (RBC, TD, Scotiabank, BMO, CIBC) offer newcomer/non-resident accounts; bring two pieces of valid ID (passport + one more). A SIN isn't legally required for a basic account but is needed for interest-bearing ones. Some banks let you start online but require an in-branch visit to finalize.
Local banks generally accept US persons under the FATCA agreement, though some are cautious about the extra reporting.
3 Taxes — the part everyone gets wrong
The US side (you still file)
- You file a US return on worldwide income. FEIE or the Foreign Tax Credit usually prevents true double taxation — which one wins depends on your income and local rates.
- FBAR (FinCEN 114) if your foreign accounts top $10,000 combined at any point in the year.
- FATCA (Form 8938) may also apply above higher thresholds.
The Canada side
Canada has no special expat tax regime. Canada has no special expat/newcomer tax regime; taxation is residency-based, and residents are taxed on worldwide income. The 33% figure is the top FEDERAL marginal rate — combined federal+provincial top rates exceed 50% in most provinces (e.g. ~53.5% in Ontario/BC, up to ~54.8% in Newfoundland & Labrador).
Where this gets people
- TFSAs and RESPs get no US–Canada treaty protection — the IRS can treat them as foreign trusts, and Canadian mutual funds/ETFs inside any account are PFICs (Form 8621). Favor US-domiciled investments.
- The headline 33% is only the federal rate — combined federal+provincial top rates exceed 50% in most provinces.
- Provincial health coverage often has up to a ~3-month waiting period for new residents — carry bridge insurance.
- A "special regime" headline rate is not your effective rate — eligibility and exclusions matter a lot.
- State taxes can follow you abroad depending on the US state you left — don't assume you're done with them.
Cross-border tax is fact-specific and the penalties are real. A US-expat tax specialist handles FEIE/FTC, FBAR, and FATCA correctly.
Get expat taxes done with Bright!Tax →4 Investing & brokerage
US brokers sometimes drop customers with a non-US address. A broker that explicitly supports non-resident Americans is the standard fallback. Beware buying local (non-US) funds — PFIC (Passive Foreign Investment Company) rules make them a US tax nightmare.
Open an account with Interactive Brokers →5 Healthcare & insurance
Legal residents generally gain access to Canada's public health system, but there's usually a gap before residency and coverage kick in. Many new arrivals and nomads bridge the gap with international coverage.
See SafetyWing coverage →6 Common residency routes
Your residency route determines your tax residency and bank access — they're connected.
Frequently asked questions
Do Americans living in Canada still have to file US taxes?
Yes. US citizens file with the IRS on worldwide income no matter where they live. The US–Canada tax treaty and tools like the Foreign Earned Income Exclusion (FEIE) or the Foreign Tax Credit usually prevent true double taxation, but you still must file. This is general information, not tax advice.
Do I need to file an FBAR if I move to Canada?
If your foreign financial accounts add up to more than $10,000 at any point in the year, you generally must file an FBAR (FinCEN Form 114). Many expats also have FATCA (Form 8938) obligations. Penalties for missing these are steep — confirm your situation with a cross-border professional.
What's the cheapest way to move money to Canada?
For a relocation lump sum, the cost is almost entirely the exchange-rate spread, not the visible fee. Banks commonly bury 1–3% in the rate. Compare your specific amount with the transfer cost tool before sending.
Can I keep my US brokerage account after moving to Canada?
Some US brokers restrict or close accounts once you have a non-US address. A broker that explicitly supports non-resident Americans is the common fallback. Don't change your address until you've confirmed your broker's policy.
Data last verified 2026-06-03. Primary source: official reference.
Informational only — not financial, tax, or legal advice. Cross-border tax is fact-specific; confirm with a qualified cross-border CPA or adviser before acting. Some links are affiliate links — we may earn a commission at no extra cost to you. Full disclaimer.