Moving from the US to Canada 2026 | Financial Guide

For Americans moving to Canada, the setup steps look familiar (a bank account, a credit card, a tax return), but three things work differently: US retirement and savings accounts don’t all keep their tax treatment once you are a Canadian resident, US citizens keep filing US returns for as long as they hold citizenship, and health care shifts from employer insurance to a provincial plan. This guide covers what happens to your US accounts, the cross-border tax picture, health coverage, money and credit, and US Social Security. The first-year steps every newcomer takes (a SIN, a bank account, a health card, a first return) are in money in Canada for newcomers.

US and Canadian accounts side by side

What happens to your US accounts

Withdrawals from US plans while you live in Canada go on your Canadian return, and the US tax withheld is credited through the foreign tax credit. How Canada taxes US pension and retirement plan income is in foreign pension income.

Cross-border tax: citizens and non-citizens

Once you settle in Canada you become a Canadian tax resident, and Canada taxes your worldwide income: US salary, interest, dividends, rent and gains as well as Canadian income (tax on worldwide income). If the total cost of your US investments outside registered plans is more than $100,000 at any time in the year, you also file Form T1135.

If you are a US citizen, the US taxes you wherever you live, so you file a US return every year as well as a Canadian one, plus FBAR and FATCA reports on your Canadian accounts. The IRS doesn’t treat a TFSA or RESP as tax-free, and Canadian mutual funds and ETFs can be PFICs, which carry heavy US reporting and tax; this shapes which Canadian accounts and funds suit a US citizen. All of it is in tax for US citizens in Canada.

If you aren’t a US citizen and you give up US residence, US filing generally ends with your departure year, apart from US-source income such as rent from a US property. The same page covers who keeps filing.

Because the two systems interact, many people who move with US retirement accounts, a home or a business use an accountant who prepares both countries’ returns.

Health coverage

Provincial health plans cover medically necessary doctor and hospital care at no charge at the point of care, with no deductibles or copays for insured services. Prescription drugs outside hospital, dental care, eye care and physiotherapy are covered only partly, or for some groups, so many employees have a workplace plan for them, and others buy private coverage. Some provinces make new residents wait before coverage starts, so a private plan for the first months may be needed; provincial health coverage and waiting periods covers each province. Medicare generally doesn’t pay for care outside the US.

Money, banking and credit

The Canadian dollar floats against the US dollar, so the amount you get for a transfer changes daily; on a large transfer the exchange-rate margin matters far more than the fee. The options, including cross-border banking at Canadian banks with US subsidiaries, are in how to transfer money to Canada, and the best US dollar accounts covers keeping some savings in US dollars.

A Social Insurance Number comes first, since employers and banks ask for it (how long it takes to get a SIN). Most large banks run newcomer packages that waive fees for a period and offer a credit card without a Canadian credit history; they are compared in the best bank accounts for newcomers.

Credit bureaus don’t share files across the border, so your US score stays in the US and Equifax and TransUnion Canada begin a new file with your first Canadian card or loan. Existing American Express card members can ask Amex about moving their membership to Canada; secured cards and the banks’ starter programs are covered in newcomer credit card options.

Opening Canadian accounts

With residency and a SIN, the Canadian registered accounts open up: a TFSA, whose room starts in your year of arrival ($7,000 for 2026; TFSA room explained); an RRSP once a Canadian return shows earned income; an FHSA for a first home; and an RESP with CESG grants for children. For a US citizen, the US treatment of the TFSA and RESP described above is the main reason the choice differs. The order to open them in is part of the PR checklist, and mortgages for newcomers covers how lenders treat US income and credit.

US Social Security from Canada

US Social Security can be paid to you while you live in Canada, and it goes on your Canadian return as foreign pension income (foreign pension income explains the treaty treatment). The Canada-US social security agreement, in force since August 1, 1984, lets periods of work in both countries count together to help you qualify for benefits in either, which matters if you haven’t worked long enough in one of them; OAS and GIS for newcomers explains how these agreements work for Old Age Security.

Moving back the other way

If you are a Canadian who lived in the US and is now coming home, the residency, TFSA and health coverage rules for returning residents are in returning to Canada after living abroad. Guides for newcomers from India, China and the Philippines cover the same ground for those countries.