Tool

Ceasing to be a Canadian tax resident: how much departure tax may apply?

When you cease to be a Canadian tax resident, Canada generally treats certain property as disposed of at fair market value on the departure date. Even without an actual sale or any cash received, the unrealized gain may enter that year's tax return. This tool applies a set of conservative assumptions to estimate the high-side magnitude of departure tax and helps you sort out which assets are worth confirming further — it does not determine your residency status, and it does not replace a formal departure-return calculation.

The amounts you enter are calculated in your browser only and are never sent to Lucid; no sign-up required.

Short-term resident exception: if you were a Canadian tax resident for 60 months or less in the ten years before departure, some property you owned before immigrating — or inherited afterward — may be exempt from the deemed disposition. This tool does not model that rule; if it applies to you, the actual exposure may be substantially lower than the result below.

Deemed sold on departure

Enter all amounts in Canadian dollars; convert foreign values and costs at the exchange rates of the relevant dates. Newcomers: the value on your immigration date may form your Canadian tax cost — not the original purchase price.

Non-registered investments · market value

Stocks, funds — Canadian and foreign investments are usually both included; the short-term resident exception may apply

Non-registered investments · adjusted cost base (ACB)

Private company shares · value

A reasoned preliminary estimate is fine here; the valuation support required for the formal tax calculation should be confirmed separately

Private company shares · adjusted cost base (ACB)

Foreign property & other taxable assets · market value

Overseas investment property, crypto; Canadian real estate does not go here

Foreign property & other taxable assets · adjusted cost base (ACB)

Not deemed sold on departure

Canadian real estate

Stays in Canada's tax net; taxed when actually sold (via the non-resident clearance process). In certain situations a taxpayer can elect to include it in the departure disposition

RRSP / RRIF

Keeps its tax-deferred status; withdrawals face non-resident withholding tax

TFSA

No departure tax — but the destination country may not recognize its tax-free status

Life insurance policies

Some Canadian life policies may fall under exceptions; segregated fund policies and foreign policies need specific review

This is a simplified educational estimate: it applies BC's top marginal rate of 53.5% and 50% inclusion to all taxable gains; gains and losses are simply netted, and loss rules for special asset classes may differ; the short-term resident exception (60 months or less in the ten years before departure) is not modelled; it ignores your actual bracket, other income in the departure year, employee options and special asset classes, tax treaties, and the destination country's treatment. Departures stack two countries' rules — this tool is for thinking about magnitude, not tax or financial advice.