🤠 COUNTRY A Texas VS 🍁 COUNTRY B Canada

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.