Departure Tax Calculator (Canada)
Estimate the deemed-disposition tax on emigration under ITA s.128.1(4). Excludes RRSP, principal residence, and Canadian real property from the deemed disposition.
Your departure tax calculator
$16,453 departure tax
Marginal rate 29.9% on 50% taxable capital gain inclusion.
| Total asset FMV | $170,000 |
| Total realized gain (taxable-cap-property only) | $110,000 |
| Taxable capital gain (50%) | $55,000 |
| Federal + provincial tax | $16,453 |
What triggers departure tax
Departure tax under ITA s.128.1(4) is triggered the moment you cease to be a Canadian tax resident. Residency is determined by primary and secondary ties (home, spouse, dependents, driver's licence, health card, vehicle registration). Tax residency does not automatically follow physical move dates — many Canadians establishing residency abroad retain enough ties to remain Canadian residents.
Excluded categories
Five categories are excluded from the deemed disposition:
- • Canadian real property — taxed only when actually sold, regardless of when
- • Business assets used in a Canadian permanent establishment
- • RRSP, RRIF, and similar deferred plans — tax deferred until withdrawal; withholding at non-resident rate
- • Principal residence — the PR exemption continues to apply for the period of Canadian residency
- • Personal-use property under $1,000 — de minimis
Forms triggered on departure
Three forms commonly file with your year-of-departure T1:
- • Form T1161 — list of properties owned at departure with FMV exceeding $25,000 in aggregate
- • Form T1243 — deemed disposition of taxable Canadian property
- • Form T1244 — election to defer payment of the departure tax by posting acceptable security; useful when liquidity is constrained
Related decisions
If you hold QSBC shares at departure, the Lifetime Capital Gains Exemption Calculator tells you how much of the deemed gain is exempt under s.110.6. If you are leaving for the US specifically, see the US Citizens in Canada Calculator and the Snowbird SPT Calculator for the US-side implications.