Phil Hogan is a Canadian and US CPA working with clients throughout Canada and the US. Phil advises on cross border tax and financial planning matters. Phil can be reached at phil@beaconhillwm.ca or via telephone at 778.433.1314. You can also read more about Phil at www.Beaconhillwm.ca/team/about-phil/
Moving to Vancouver from Texas – How Much More Tax Will I Pay?
09 November 20 
Cross Border Tax The conversation below was between myself and a gentlemen asking some questions online. I decided to post it here as it may help others thinking of moving to Canada from the US.
The decision to move to Canada from the US, especially for work can often hinge on the actual change in tax rate and overall taxes one may need to pay. In this example, the individual was asking about the tax implications of moving from Texas to Vancouver.
Because Texas doesn’t currently have any US personal income tax the difference between what he would be paying currently (Federal US tax) and Canadian tax (both Federal Canadian and BC Provincial Tax) can be significant depending on the level of income earned.
In his case however the difference in tax rates is only one factor in his decision to move to Canada for work as lifestyle was also a consideration.
As you can see from the quick analysis below the difference in tax rates between Texas and BC is close to 10% depending on available deductions and Canadian tax credits. His tax rate is also relatively high considering his single filing status in the US.
Not only should tax rate differential be considered but also the fact that his filing requirements will be much more complicated as both Canadian and US income tax forms would need to be submitted each year.
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Get Started
Phil Hogan, CPA, CA
Hi, thanks for reaching out. Please email me at phil@hutcheson.ca or leave a message here and I’ll do my best to respond as soon as I can. Have a nice day!
Hey there 
Can I get your email address in case we get disconnected?
Can I get your email address in case we get disconnected?XXXXX
I am on the fence about accepting an intra company transfer visa to work in Vancouver.. I am in a position in Texas where I am able to save quite a bit, and I’m worried my ability to save in Vancouver might make the move not worth it. I am looking for counsel from someone who would be well versed in the intricacies! I’m hoping that might be you?
I saw your post on Reddit haha
Phil Hogan, CPA, CA
Hi XXXXX
Would you be coming through on a Visa or are you already a Canadian citizen?
XXXXXX
My company would be sponsoring a 3 year intra company transfer visa
Phil Hogan, CPA, CA
Will your decision hinge on your financial outcome or other issues?
It’s likely quite a bit more tax compared to Texas. Also the cost to file both Canadian and US income tax returns can be high
XXXXXX
Financial outcomes is about 50% the other 50 is the mountains/the way of life (I’m way to open minded to be living in Texas lol)
Phil Hogan, CPA, CA
Do you know roughly how much you’ll be making?
Will you be filing single or are you married?
XXXXXX
In the US I made roughly 120,000-130,000 Us
The pay would likely be translated to Cad, maybe 5-10% less
I’d be filing single, but could potentially get married if it makes remarkable sense to do so lol
Phil Hogan, CPA, CA
Then it’s likely just the difference in tax and the cost of the returns
You’ll likely pay around 30% tax on that income in Canada
XXXX
That’s not that much higher than here
Phil Hogan, CPA, CA
What’s your current tax rate?
Filing single keeps it higher
XXXXX
125k us would equate to roughly 165k CAD right?
I believe I’m at about 24-27 ish. (Commission tax is slightly different and roughly 40-60% of my income)
Phil Hogan, CPA, CA
Ya, close to $165
might be close to 10% spread on tax rates plus the cost to prepare the tax returns
is your company helping with the cost of the tax returns?
XXXXX
I haven’t officially gotten the offer finalized yet, but I imagine they would not be helping with taxes
Phil Hogan, CPA, CA
Do you have any other tax related questions?
Also Vancouver housing prices should be considered. It’s quite expensive in Vancouver
XXXXX
You believe the tax implications would only be 10% more than in paying now? I was worried it would be like 25% more
Do you know about Paying tax both to US and Canada?
Btw you will ABSOLUTELY be who is doing my taxes when I get to Canada!!
This commentary reflects the personal opinions, viewpoints and analyses of the Beacon Hill Wealth Management Ltd. partner providing such comments, and should not be regarded as a description of advisory services provided by Beacon Hill Wealth Management Ltd. or performance returns of any Beacon Hill Wealth Management Ltd. client. The views reflected in the commentary are subject to change at any time without notice. Nothing in this commentary constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Beacon Hill Wealth Management Ltd. manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results. Any discussion about taxation is for educational purposes only and should not be viewed as professional advice. Consult your tax professional for tax advice on your particular situation.
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