Compare taxes and see how much you save moving from Texas to Canada
Texas has no state income tax — but Texans still pay US federal tax (10-37%). Canada's combined federal and provincial income tax (using Ontario as a representative province) totals approximately $24,385 at $100,000 income. On a state-vs-country basis, Texas's $0 looks great, but the full picture requires adding US federal tax: Texans pay ~$17,344 in federal tax at $100K, while Canadians pay ~$24,385 combined. Canada is more expensive, though the gap is smaller than the headline $0 vs $24K suggests. Americans moving from Texas to Canada face a unique complexity: they must still file US federal tax returns every year (worldwide income obligation). The US and Canada have a tax treaty with foreign tax credit provisions, so most US expats in Canada don't pay tax twice in full — but the filing obligations remain. Canada offers universal healthcare (Medicare), which partially offsets the higher taxes for many residents.
No State Income Tax
Constitutional prohibition on state income tax
Federal + Provincial Tax
Federal 15-33% plus provincial tax (Ontario ~5.05-13.16%)
At $100,000 income:
Canada's combined federal and provincial income tax totals ~$24,385 at $100,000 versus Texas's $0 state income tax. Note: American movers still file US federal returns and use foreign tax credits to avoid double taxation. Total Texas (state + federal) is ~$17,344 — still less than Canada's combined $24,385.
| Income | TX Tax | CA Tax | Savings | 10-Year |
|---|---|---|---|---|
| $50,000 | $0 | $10,025 | -$10,025 Canada costs more | -$100,250 |
| $75,000 | $0 | $16,972 | -$16,972 Canada costs more | -$169,720 |
| $100,000 | $0 | $24,385 | -$24,385 Canada costs more | -$243,850 |
| $150,000 | $0 | $42,096 | -$42,096 Canada costs more | -$420,960 |
| $250,000 | $0 | $84,527 | -$84,527 Canada costs more | -$845,270 |
CountryTaxCalc.com is reader-supported. When you use our partner links, we may earn a commission at no cost to you. This helps us provide free tax calculators and comparison tools. Learn more about our affiliate partnerships
★ 4.8 Trustpilot · 1,625 reviews
Americans abroad must still file a US tax return every year — no matter which country you move to. Greenback's CPAs specialise exclusively in US expat returns: FEIE, foreign tax credits, FBAR, and state filing requirements. Fixed pricing, no surprises.
⚠ Not the cheapest option — best for complex situations and expats who want a dedicated CPA.
Get Your US Expat Taxes Filed →★ 4.8 Trustpilot · 2,681 reviews
25 years filing US expat taxes across 190+ countries. Two-CPA review process. 50,000+ clients. 4.8 stars / 2,681 Trustpilot reviews.
⚠ Best for existing expats. If you're still in the US, a local CPA may be more cost-effective.
File With TFX — Expert Expat CPAs →★ 4.3 Trustpilot · 287,413 reviews
Moving money between your US accounts and your new country? Wise offers mid-market exchange rates with low transparent fees — typically 4-8x cheaper than banks for international transfers.
⚠ For currency exchange only — not a bank account replacement.
Transfer Money Internationally →Yes. All US citizens and green card holders must file a US federal tax return regardless of where they live. Texas has no state tax to leave behind, but your US federal tax obligation continues. The US-Canada tax treaty provides foreign tax credits that prevent double taxation — most Americans in Canada end up paying Canadian rates (which are generally higher than US rates), with foreign tax credits offsetting the US liability.
Texas charges $0 in state income tax at all income levels. Canada's combined federal and Ontario provincial income tax totals approximately $10,025 at $50,000, $24,385 at $100,000, and $84,527 at $250,000. These figures include both federal and Ontario provincial tax. Other provinces have similar combined rates; Quebec is higher (~$5-8% more).
Yes. Canada's universal healthcare system (Medicare) is funded through general taxation. Unlike the US, Canadians do not pay additional private health insurance premiums for basic coverage. This partially offsets Canada's higher tax burden — American expats moving to Canada gain access to the provincial healthcare system after typically a 3-month waiting period.
The US-Canada Tax Convention prevents double taxation on most types of income. Americans living in Canada can claim foreign tax credits on their US return for Canadian income taxes paid. Since Canadian rates typically exceed US federal rates, most Americans in Canada owe little or no additional US tax after credits — but they must still file the US return annually.
Alberta has the lowest provincial income tax at a flat 10% rate, making it one of the more tax-competitive provinces. Ontario (used in this comparison) has rates from 5.05% to 13.16%. Quebec has the highest rates. For Americans comparing Texas to Canada specifically, Alberta would be the closest equivalent to Texas in terms of lower provincial tax.
Yes. Canada includes 50% of capital gains in taxable income (the inclusion rate was proposed to increase to 67% for gains over $250,000 CAD, though legislative status should be verified). Texas has no state capital gains tax, but US federal capital gains tax (0-20% for long-term gains) applies. Americans in Canada pay Canadian capital gains tax and can credit it against US federal liability.
Americans with Canadian bank accounts must file FBAR (FinCEN Form 114) if the aggregate value of all foreign financial accounts exceeds $10,000 at any point during the year. Additionally, FATCA Form 8938 may be required for higher account balances. Greenback Expat Tax Services specialises in these filings and the complete US expat return for Canada-based Americans.