Spending the winter in the US is common for Canadian retirees, and it comes with two sets of day-counting rules: the US decides from your days there whether you could be treated as a US resident for tax, and your province decides from your days away whether you keep your health coverage. This guide covers both, plus travel insurance, the cost of a winter away and cross-border banking. It is one of the guides for specific groups in life stages and life events. Moving abroad for good is a different situation, covered in the guide for retirees living abroad.
The US day count
The IRS’s substantial presence test treats you as a US resident for tax if you were in the US at least 31 days during the current year and 183 days during the 3-year period that includes the current year and the 2 years immediately before it, counting all the days in the current year, 1/3 of the days you were present in the first year before, and 1/6 of the days in the second year before. Snowbirds who meet the test but keep their main home and closer ties in Canada can usually claim the closer connection exception by filing IRS Form 8840 (Closer Connection Exception Statement for Aliens) each year.
Example: a snowbird who spends 150 days in the US this year, 150 last year and 150 the year before has a weighted count of 225 days, which is at least 183, so the test is met and Form 8840 would be the way to claim the closer connection to Canada.
Separately, your Canadian tax residency depends on the ties you keep (a home, a spouse, personal property); a winter away doesn’t change it on its own. How the CRA decides is covered in am I a Canadian tax resident.
| Situation | What usually applies |
|---|---|
| Under the substantial presence threshold, no US income | No US filing |
| Substantial presence test met, closer ties to Canada | Form 8840 each year |
| US rental income or a US property sale | A US non-resident return |
| US dividends in a Canadian account | US withholding at the treaty rate, with Form W-8BEN on file with the broker |
| Bringing goods back to Canada | Personal exemptions depend on how long you were away |
Provincial health insurance absence rules
Each province sets how long you can be away and keep your coverage, and some require you to tell the plan before a long absence.
| Province | Maximum Absence | Policy | Notes |
|---|---|---|---|
| Ontario (OHIP) | 212 days in any 12-month period (must be present 153 days) | Continuous coverage | 5 of every 12 months in ON |
| British Columbia (MSP) | Up to 7 months in a calendar year (vacationers) | Continuous | Contact Health Insurance BC before an absence of 6 months or more |
| Alberta (AHCIP) | Up to 212 days in a 12-month period (recurring vacation) | Coverage may continue | Confirm eligibility with AHCIP before you leave |
| Quebec (RAMQ) | Less than 183 days a year | May lose coverage | Absences of 183 days or more per year put coverage at risk (Protecteur du citoyen) |
| Manitoba | Up to 7 months outside Canada (6 within Canada) for vacation | Continuous if reported | Report absences of 90 days or more in a 12-month period before you leave |
| Saskatchewan | Must be present at least 5 months each year | Continuous | Check with eHealth Saskatchewan before a long absence |
| Nova Scotia (MSI) | Must be present at least 183 days every calendar year | Continuous | Must be resident |
| New Brunswick | Up to 212 days for vacation (after 153 days in NB in a 12-month period) | Continuous | Notify Medicare of absences of 30 days or more |
Snowbird travel insurance
Provincial plans pay only a small part of US medical costs, so snowbirds rely on travel medical insurance for the winter. Coverage for a multi-month stay costs far more than a short-trip policy, because premiums rise with age, trip length and any pre-existing conditions, and the stability clause on those conditions decides whether a claim is paid. Premiums by age, the stability rules and the main long-stay insurers are compared in our guide to travel insurance for snowbirds.
What a winter away costs
The cost of a winter in the US depends mostly on accommodation (renting a condo, owning, or an RV), the length of the stay, travel insurance (which rises steeply with age and health), the exchange rate, and the cost of keeping your Canadian home insured and maintained while you’re gone. Florida and Arizona have the largest Canadian communities, with rents that vary widely by town and season. Those deciding between provinces for retirement can compare them in the best provinces to retire in.
Cross-border banking
| Need | Common option | Details |
|---|---|---|
| US bank account | RBC Bank (Georgia) or TD Bank (US) | Full US chequing, debit card |
| No-FX credit card | Scotiabank Passport Visa Infinite+ Card ($150/year) | 0% foreign transaction fee |
| USD cash access | US bank account and US debit card | Fewer ATM and exchange fees |
| Pay US bills | US bank account with bill pay | Rent, utilities, insurance |
| Converting CAD to USD | A currency-transfer service or Norbert’s Gambit at a broker | Usually cheaper than a bank’s exchange rate |
| Travel insurance payment | Canadian credit card | Covers in CAD |
US-dollar savings and chequing options are compared in the best US dollar accounts.
Related articles
Sources
The figures and rules on this page come from these sources, last checked against them between September 5, 2026 and September 25, 2026. How we check facts.
- Scotiabank: Passport® Visa Infinite +* Card