Cross-Border Tax Calculator
Estimate your tax liability if you earn income in both the US and Canada. Covers foreign tax credits, the Canada-US Tax Treaty, and the substantial presence test for determining residence.
Cross-Border Income
Tax Summary
Total Income (CAD)
$158,000
US Tax (USD)
$12,514
CA Tax
$50,993
Net Tax Owing
$34,099
Canadian resident: report worldwide income. Foreign tax credit of 16893.9 CAD available for US tax paid. Net Canadian tax owing: 34098.83 CAD.
Frequently asked questions
What does this cross-border tax calculator estimate?
It estimates your combined tax when you have income in both countries by adding US income (converted to Canadian dollars at the exchange rate you set) to your Canadian income, then applying a foreign tax credit so the same income is not taxed twice. You enter your US income in USD, your Canadian income in CAD, a USD→CAD exchange rate, your residence country, and your province. It models US federal tax plus Canadian federal and provincial tax, CPP, and EI — giving you a net tax-owing figure rather than line-by-line return amounts.
How is the foreign tax credit calculated here?
The foreign tax credit is the lesser of the US tax you paid (converted to CAD) and the Canadian tax attributable to your US-source income. That mirrors how relief works in practice: you get credit for foreign tax up to the Canadian tax on the same income, so if the US rate is higher the extra is not refunded by Canada. For a Canadian resident, net Canadian tax owing equals your total Canadian tax minus this credit.
Does this run the substantial presence test or the treaty tie-breaker for me?
No. You select your residence country — Canada or United States — as an input, and the calculator estimates tax on that basis. It does not run the IRS substantial presence test or the Canada-US Tax Treaty Article IV residency tie-breaker to decide your status for you. Determine your residency first (the substantial presence test and treaty tie-breaker rules are how that is settled), then run the figures with the correct residence selected.
Which exchange rate does the calculator use?
It defaults to a USD→CAD rate of 1.35, which you can override with your own figure. The rate converts both your US income and the US tax you paid into Canadian dollars so the two countries' amounts can be combined and compared. For an actual return, the CRA generally expects the Bank of Canada exchange rate for the relevant period.
Is US state tax included?
No — the calculator estimates US federal tax only, using a simplified set of 2026 federal brackets. It does not model US state or city income taxes, which many cross-border workers also owe. Treat the US figure as a federal-only estimate and add any applicable state tax separately when planning.
Which provinces does it support?
You can choose Ontario, British Columbia, Alberta, or Quebec. The Canadian side applies that province's tax alongside federal tax, CPP, and EI. Quebec in particular runs its own provincial system, so treat cross-border estimates there as indicative and confirm with a cross-border tax professional.