Canada Expat Tax Guide 2025
FEIE, Foreign Tax Credits, banking, visa options & filing strategies for US expats in Canada.
How Canada Taxes Work
Canada's tax system: Worldwide income; federal + provincial rates.
FEIE vs Foreign Tax Credit
FTC is typically better — Canadian rates often exceed FEIE benefit. US-Canada tax treaty and totalization agreement are critical.
The FEIE allows you to exclude up to $130,000 of foreign earned income from US taxation in 2025.
Social Security & Self-Employment Tax
Canada has a totalization agreement with the US. This prevents double Social Security taxation.
Banking for US Expats
RBC, TD, and Scotiabank all work with US expats. Cross-border banking is common.
Visa Options
Express Entry, Provincial Nominee Program, or Self-Employed visa.
Cost of Living
Moderate to high — $2,500–$4,000/month in Toronto/Vancouver, less in other provinces.
Frequently Asked Questions
Do US expats in Canada need to file US taxes?
Yes. US citizens must file regardless of where they live. The FEIE can exclude up to $130,000.
Should I use FEIE or FTC?
FTC is typically better — Canadian rates often exceed FEIE benefit. US-Canada tax treaty and totalization agreement are critical.
What is the cost of living?
Moderate to high — $2,500–$4,000/month in Toronto/Vancouver, less in other provinces.
Compare FEIE vs FTC vs Combined strategies for Canada.
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