The New York to Toronto migration is one of the most discussed moves for finance, media, and tech workers in North America. New York state income tax at $100,000 is approximately $5,398, while Canada (federal + Ontario provincial) charges $24,385 — nearly five times more on a state-vs-country basis. However, New York residents also pay US federal tax (~$17,344 at $100K), bringing total NY burden to ~$22,742 — still slightly less than Canada's $24,385. NYC also charges an additional city income tax (3.078-3.876%) on top of state, making full NYC vs Toronto comparison closer than it appears. Americans moving from New York to Canada face a continuing US federal tax obligation — this worldwide income requirement does not end on relocation. The US-Canada tax treaty provides foreign tax credits that prevent double taxation, but annual US filing continues. Canada's universal healthcare is a significant counterbalance to higher income tax rates.

By Daniel, Founder of CountryTaxCalc

Daniel has spent 5+ years researching tax systems across 95+ countries and all US states to make tax comparison accessible to everyone. For corrections, contact us.

Last Updated: April 2026

The Big Picture

🗽 New York

4–10.9%

High Income Tax State

8 tax brackets from 4% to 10.9%

🍁 Canada

20–53%

Federal + Provincial Tax

Federal 15-33% plus provincial tax (Ontario ~5.05-13.16%)

Typical Annual Savings

At $100,000 income:

-$18,987

New York state income tax ($5,398) is lower than Canada's combined tax ($24,385) at $100,000. Total NY (state + federal) of ~$22,742 is close to Canada. NYC city tax adds another 3-4% on top. US expats in Canada use foreign tax credits to avoid double taxation.

Tax Savings by Income Level

IncomeNY TaxCA TaxSavings10-Year
$50,000 $2,246$10,025-$7,779 Canada costs more-$77,790
$75,000 $3,609$16,972-$13,363 Canada costs more-$133,630
$100,000 $5,398$24,385-$18,987 Canada costs more-$189,870
$150,000 $8,932$42,096-$33,164 Canada costs more-$331,640
$250,000 $16,156$84,527-$68,371 Canada costs more-$683,710
💡

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New York Pros and Cons

✅ Pros

  • State income tax much lower than Canada's combined rate
  • World's largest financial market access
  • Higher USD finance and media salaries
  • No parallel national income tax system

❌ Cons

  • High state income tax (up to 10.9%)
  • NYC city income tax adds 3.076-3.876% on top
  • No universal healthcare
  • Plus US federal on top of state and city

Canada Pros and Cons

✅ Pros

  • Universal healthcare (Medicare) included
  • Combined rate close to total NYC (state + city + federal) burden
  • Strong financial sector in Toronto
  • US-Canada tax treaty prevents double taxation

❌ Cons

  • Combined income tax significantly higher than NY state alone
  • Americans must continue US federal filing obligations
  • Toronto cost of living nearly as high as NYC in many categories
  • Capital gains tax inclusion rate applies

Frequently Asked Questions

Q: Will I still pay US taxes if I move from New York to Canada?

Yes. All US citizens and green card holders must file a US federal tax return regardless of where they live. New York state tax ends once you successfully establish non-residency from New York (which is notoriously difficult — New York aggressively audits high-income departing residents). Your US federal obligation continues indefinitely. The US-Canada tax treaty allows you to claim foreign tax credits on Canadian taxes paid, preventing most double taxation.

Q: Is it hard to escape New York state taxes when moving to Canada?

Yes. New York State is one of the most aggressive states for pursuing former residents. You must establish domicile in Canada, spend fewer than 183 days in New York, and not maintain a permanent place of abode in the state. High-income New Yorkers are frequently audited for 'statutory residency' — if you maintain an apartment in New York and spend more than 183 days there, New York will tax you regardless of where your domicile is claimed to be.

Q: How does full NYC tax compare to Toronto tax?

A New York City resident pays state tax (up to 10.9%) + NYC city tax (up to 3.876%) + federal (up to 37%). At $100,000: ~$5,398 NY state + ~$3,100 NYC + ~$17,344 federal = ~$25,842 total. Canada (Ontario) at $100,000: ~$24,385. Surprisingly, total NYC burden is slightly higher than Toronto at $100K. At $150K+, the comparison remains close.

Q: What is the finance job comparison between New York and Toronto?

Wall Street (New York) typically offers higher USD base salaries than Bay Street (Toronto), particularly for investment banking, private equity, and hedge funds. However, Toronto's financial sector has grown significantly. After-tax income comparisons depend heavily on whether you work in midtown Manhattan (NYC city + state + federal) versus downtown Toronto (federal + Ontario). The gap in absolute after-tax income is smaller than the headline tax rates suggest.

Q: Does Canada have healthcare included in the taxes?

Yes. Ontario's OHIP (Ontario Health Insurance Plan) provides universal healthcare funded through taxation. New York residents typically pay $400-$800/month in health insurance premiums (or have employer coverage). This healthcare value offsets some of Canada's higher income tax burden when comparing total cost of living.

Q: What are FBAR and FATCA requirements for Americans in Canada?

Americans with Canadian bank accounts must file FBAR (FinCEN Form 114) if aggregate foreign account values exceed $10,000 at any point during the year. FATCA Form 8938 is required for higher thresholds ($50,000-$200,000+ depending on filing status and residency). Canadian RRSPs and TFSAs have specific US reporting requirements. Greenback Expat Tax Services specialises in these filings for US expats in Canada.

Q: Which country has better capital gains treatment — New York or Canada?

The US federal long-term capital gains rate is 0%, 15%, or 20% depending on income. New York adds state tax on capital gains at ordinary income rates (up to 10.9%) plus NYC tax. Canada includes 50% of capital gains in taxable income (effective rate roughly half the marginal income tax rate). For high earners, US total capital gains treatment (federal + New York) is generally more favorable than Canada's at equivalent income levels.

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