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Leaving Canada (Emigrating From Canada)

Income Tax Act s. 128.1(4)

If a resident of Canada moves to another country, and severs residential ties with Canada, he/she is deemed to be an emigrant of Canada for tax purposes. When this happens, the person is deemed to have disposed of almost all their property and re-acquired it at fair market value. Tax will be payable on any capital gains arising from the deemed dispositions.

There are some exceptions to the deemed disposition of properties, including RRSPs, RRIFs, TFSAs, and many others. See Dispositions of property for emigrants of Canada, which lists the exceptions, under the heading Deemed dispositions.

Emigrants are not eligible for:

GST/HST Credit
Canada Child Benefit (CCB)
Child Disability Benefit (CDB)
Canada Child Tax Benefit (CCTB) - now discontinued
Universal Child Care Benefit (UCCB) - now discontinued

It is important that you report your date of emigration to Canada Revenue Agency (CRA) as soon as possible.

If you are participating in the Home Buyers' Plan (HBP) or Lifelong Learning Plan (LLP), you have to pay the balance of the funds you withdrew by whichever date is earlier:

60 days after you become a non-resident; or
the date you file your tax return for the year.

If you continue to receive Canadian-source income after you emigrate, Part XIII tax of 25% will be withheld from certain types of income. The most common types of income subject to withholding tax are:

non-arm's length interest
dividends
rental payments
pension payments
Old Age Security (OAS) pension
Canada Pension Plan (CPP) or Québec Pension Plan (QPP) benefits
retiring allowances
registered retirement savings plan (RRSP) payments
registered retirement income fund (RRIF) payments
annuity payments

The tax treaty between Canada and your new country of residence may reduce the rate of non-resident withholding tax on some types of income. For more information on how this withholding tax can be reduced or recovered, see our article Who Pays Tax in Canada and On What Income?

If you hold a TFSA when you become a non-resident, see Leaving Canada - TFSA.

Canada Revenue Agency (CRA) Resources

Leaving Canada (emigrants)

Folio S5-F1-C1 Determining an Individual's Residence Status

Non-Resident Tax Calculator - calculates the Part XIII tax on payments to non-residents of Canada, depending on the country of residence of the payee.

Tax Tip: Get professional tax advice before emigrating from Canada.

Revised: September 12, 2025