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Canada does impose a "departure tax" on individuals who permanently emigrate and cease to be tax residents. This is not a flat fee but rather a capital gains tax triggered by a "deemed disposition" of assets under the Income Tax Act. It's designed to tax unrealized gains that accrued while you were a Canadian resident. Here's a breakdown of how it works, based on current rules as of 2026.When It AppliesThe departure tax kicks in when you become a non-resident of Canada for tax purposes. This typically happens if you sever residential ties (e.g., sell your home, move family abroad, spend less than 183 days in Canada annually, and establish residency elsewhere).
It's applied in the year you emigrate, on the date you cease residency.

Canada taxes your worldwide income up to the departure date as a resident, and only Canadian-sourced income afterward as a non-resident.
If you return to Canada within five years, you may be able to unwind some effects, but that's case-specific. 


Assets Affected and ExceptionsDeemed Disposition Rule: You're considered to have sold most of your worldwide assets at their fair market value (FMV) immediately before leaving, even if no actual sale occurs. You then "reacquire" them at that FMV, resetting your cost base for future taxes in your new country.
Affected Assets: Includes stocks, bonds, mutual funds, non-registered investments, jewelry, art, collectibles, shares in private companies, foreign real estate, and other capital property. Taxable Canadian property (e.g., Canadian real estate) is often subject to withholding tax on actual future sales instead. 

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Key Exceptions (not subject to deemed disposition):Your principal residence in Canada (if it qualifies).
Registered plans like RRSPs, RRIFs, RESPs, TFSAs, FHSAs, and RDSPs.
Pension rights and certain employee stock options.
Canadian real property or resource properties (these remain taxable in Canada on actual disposition).
Personal-use items worth less than $25,000 total (but if over $25,000, you must report all deemed dispositions on Form T1161 or face a penalty up to $2,500). 

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How the Tax Is Calculated

Capital Gain Formula: Gain = FMV at departure - Adjusted cost base (ACB, usually your original purchase price plus improvements).
Inclusion Rate: As of January 1, 2026, the capital gains inclusion rate increased:For individuals: 50% (1/2) on the first $250,000 of annual gains; 66.67% (2/3) on gains above $250,000.
This applies to the net gains from deemed dispositions. The $250,000 threshold is per person and includes all capital gains in the year (not just departure-related).
Taxed at your marginal income tax rate (federal + provincial, up to about 54% in high brackets, depending on province). 

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Example: If you have shares with an ACB of $100,000 and FMV of $300,000 at departure, the gain is $200,000. At the 50% rate (assuming under threshold), $100,000 is added to your taxable income. If over the threshold, part would be at 66.67%.
Losses can offset gains, and you may carry forward unused losses.
Provincial variations apply (e.g., Quebec has its own rules and may require separate security for deferral).

Filing and PaymentReporting: File a Canadian tax return for the partial year as a resident. Report gains/losses on Schedule 3 (Capital Gains or Losses) and attach Form T1243 (Deemed Disposition of Property by an Emigrant of Canada). Include details like acquisition year, FMV, and ACB. 

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Deadline: Usually April 30 of the following year (or June 15 if self-employed).
Deferral Option: You can elect to defer payment of the departure tax until you actually sell the assets. Provide acceptable security (e.g., bank guarantee, property lien) to the CRA. No security needed for the first $100,000 of gains. This is done via Form T1244 (Election to Defer Tax on Deemed Disposition). 

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Interest accrues on deferred amounts if not paid promptly upon actual disposition.

Planning ConsiderationsMinimize Impact: Time your departure to realize losses first, use spousal transfers, or crystallize gains before rates change. For holding companies, pay dividends pre- or post-departure to reduce share values (post-departure at lower treaty rates if applicable). 

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Tax Treaties: If moving to a treaty country (e.g., US), it may prevent double taxation, but Canada gets first taxing rights on pre-departure gains.
Professional Advice: Valuations and residency determinations are complex; consult a tax advisor or cross-border specialist early (ideally 1-2 years before leaving) to avoid surprises. Changes in 2026 make planning even more critical.
For specifics, refer to the CRA's guidance or tools like their emigration checklist.

If you have details about your situation (e.g., assets, destination country), I can provide more tailored insights.