US Citizens Working in Canada
See what you actually take home after US and Canada taxes: whether you're already working abroad or planning a move.
Here's what matters most for US citizens working in Canada:
- •Canadian tax rates vary by province, making calculations complex
- •US-Canada tax treaty is comprehensive and helps prevent double taxation
- •Provincial taxes add an additional layer beyond federal taxes
Calculate your take-home pay
See your real take-home pay with currency conversion and cost of living adjustments.
Who taxes you?
As a US citizen working in Canada, you're subject to taxation by both countries. The US taxes citizens on worldwide income, but the Foreign Earned Income Exclusion (FEIE) can exclude up to $132,900 of foreign earned income in 2026 if you meet the 330-day physical presence test. Canada taxes its residents on their worldwide income, from inside and outside Canada, with both federal and provincial rates. The US-Canada tax treaty is one of the most comprehensive and provides foreign tax credits to prevent double taxation.
Common pitfalls
- Canadian tax rates vary significantly by province (Alberta vs Quebec, for example)
- Provincial tax rates can add 10-15% on top of federal rates
- Currency fluctuations between USD and CAD can impact your effective income
Is there a US-Canada tax treaty?
Yes. The US-Canada income tax treaty is comprehensive, and foreign tax credits cover what it does not.
Getting paid in Canadian Dollar
Salaries in Toronto are paid in Canadian Dollar (CAD). A 100,000 US-dollar salary is roughly 136,000 CAD at current rates. That matters twice over: your US return is always filed in dollars, so the rate on each payday feeds straight into what you report, and a currency that moves against the dollar changes what the same nominal salary is worth to you without your pay changing at all.
Coverage level
Partial coverage with general tax guidance. Calculations are approximate.
Frequently asked questions
Not on the same income: a treaty is in force. You pay the higher of the two rates, not both.
The Canadian Dollar (CAD). A 100,000 US-dollar salary is about 136,000 CAD at current rates. Your US tax is always calculated in dollars, so the exchange rate on the day you are paid feeds directly into what you report, and into how far the same nominal salary goes in Toronto.
Canada has a progressive income tax system with both federal and provincial rates. Federal rates range from 15% to 33%, and provincial rates vary significantly. Combined rates can exceed 50% in high-tax provinces like Quebec or Nova Scotia.
Each Canadian province has its own tax rates that apply in addition to federal taxes. Rates vary from around 10% in Alberta to over 15% in Quebec. Your total tax rate is the sum of federal and provincial rates.
Official resources
Primary sources:
Calculate your take-home pay
See your real take-home pay with currency conversion and cost of living adjustments.
Working in the US? Use our main calculator:
US Take-Home Pay Calculator →