I'm moving from Canada to the US — will CRA really tax me on stocks I haven't sold?
Yes. On the day you cease to be a Canadian tax resident, you are "deemed" to have sold most of your capital property at fair market value and immediately reacquired it. The resulting capital gains are taxed on your departure return even though you received no cash. This is the departure tax, and it applies by operation of law whether or not you file anything.
How it works
Departure date FMV minus your adjusted cost base = deemed capital gain, taxed at the 50% inclusion rate on your final Canadian return. You need a defensible FMV for every affected asset as of that exact date — get statements and valuations dated accordingly.
What is excluded
| Excluded from deemed disposition | Still caught |
|---|---|
| Canadian real property | Stocks, ETFs, mutual funds in non-registered accounts |
| RRSP, RRIF, pensions | Shares of private corporations |
| TFSA | Foreign real estate (including vacation homes) |
| Unexercised employee stock options | Cryptocurrency |
| Property owned when you became resident, if you were resident fewer than 60 months in the prior 10 years (short-term resident rule) |
Frequently asked questions
I didn't file anything when I left — does the tax still apply?
Yes. The deemed disposition happened by law on your departure date. Not filing doesn't erase it; it just adds interest and penalties.
Can I get the tax back if I move back to Canada?
You can elect to "unwind" the deemed disposition when you re-establish residency, which cancels the deferred tax (the original cost base is restored).
Does the US give me credit for departure tax paid to Canada?
The US generally treats the departure tax as a creditable foreign tax when the gain is recognized, but timing mismatches are common — get cross-border advice before you move.
Sources
- https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/leaving-canada-emigrants.html (CRA)
- https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/dispositions-property.html (CRA)