Permanent relocation from Canada to Florida: the complete guide

Section 01The 60-second version

A permanent move requires four parallel tracks running for 12 to 18 months. Immigration comes first: green card (EB-1, EB-2 NIW, EB-3, family preference, IR/CR), or a long-term nonimmigrant status (TN renewable, E-2 treaty investor, L-1). Visitor status (B-2) cannot be the basis for a permanent move. Canadian tax departure is filed on a T1 departure return for the year you cease residency, with departure date noted on page 1, deemed disposition reported on most non-registered assets, and the principal residence sheltered by the Principal Residence Exemption (PRE) if eligible. Household export uses a detailed inventory presented to US Customs and Border Protection on Form 3299 for duty-free entry, with goods owned and used abroad for at least one year. Florida establishment triggers two short timelines once you take up domicile: vehicle title and registration within 10 days, Florida Class E driver licence within 30 days. Florida Homestead Exemption is filed by March 1 of the year you want it applied, but only if you have lawful permanent residence or another status compatible with intent to make Florida your permanent home.

Section 02Who this guide is for

This guide addresses Canadians who intend to make Florida their permanent legal home, ceasing Canadian tax residency in the process. The reader has either obtained, or is in the immigration pipeline for, a status that authorises permanent or long-term residence in the United States.

This guide is not for snowbirds or part-time residents who keep their Canadian residency and homestead in Canada. Those readers should consult the snowbird arrival and departure checklist, the temporary vehicle import guide, and the pharmacy coverage guide instead. The rules described below assume the reader is breaking residency, not extending it.

Section 03Step 1 : Confirm your US immigration status

The decision to move permanently is not yours alone to make. The US government decides who is allowed to live in the country indefinitely, and a Canadian passport plus a Florida lease is not a path to that. Before any moving truck is booked, the immigration question must be settled.

There are three clusters of status that authorise a permanent or long-term life in Florida.

Lawful Permanent Resident (LPR) status, commonly called the green card, is the only status that grants the legal right to live and work in the United States indefinitely without a sponsoring employer or treaty. Canadians most often obtain it through employment-based categories such as EB-1 (extraordinary ability), EB-2 NIW (national interest waiver), and EB-3 (skilled worker, professional). Family-sponsored categories (IR/CR for spouses of US citizens, F1 to F4 for other family preferences) are slower but do not require an employer. The Diversity Visa lottery is a long-shot annual draw with low yield for Canadian-born applicants. See the dedicated guides on employment-based green cards and family preference categories.

Long-term nonimmigrant statuses authorise extended stays without conferring permanent residence. The TN visa, available to Canadian and Mexican professionals under USMCA, has no annual cap and is renewable indefinitely in three-year increments. The E-2 treaty investor visa is renewable as long as the qualifying investment is maintained. The L-1 intra-company transferee visa applies to executives and specialised workers transferred from a Canadian employer to a US affiliate. None of these statuses authorises an open-ended life in Florida the way a green card does, and none of them, on its own, supports a Florida Homestead Exemption claim, which requires demonstrable intent to make Florida the permanent legal home (the legal concept of domicile).

Visitor (B-2) status is the path that does not work for a permanent move. A B-2 admission is granted for a maximum of six months at a time, with no work authorisation and no path to permanence built in. Attempting to use repeated B-2 admissions as the de facto basis for a permanent move triggers the doctrine of preconceived intent: CBP officers can refuse entry, cancel future visas, and in serious cases trigger fraud findings that affect future applications. Canadians who arrive in Florida on B-2 with the intent to stay are not making a permanent move. They are making an undeclared one, with consequences.

The takeaway: until the immigration status question is answered, none of the other steps in this guide should be initiated.

Section 04Step 2 : Plan your Canadian tax departure

Becoming a non-resident of Canada is not a procedural notification. It is a tax event that the CRA treats as the closing of a chapter. The day you cease Canadian tax residency, the CRA deems you to have sold most of your worldwide property at fair market value, and capital gains realised up to that point are subject to Canadian tax on a final return.

The mechanism is in section 128.1 of the Income Tax Act, applied through the T1 departure return filed for the year of departure. The departure date is recorded on page 1 of the return, and the CRA uses it as the line that separates Canadian-resident reporting (worldwide income, deemed disposition triggers) from non-resident reporting (Canadian-source income only, withholding tax regime).

The deemed-disposition rule applies broadly, but the Income Tax Act carves out important exceptions.

Real property situated in Canada is not subject to deemed disposition on departure. This means a Canadian principal residence and Canadian rental properties remain on your books at their original cost base, and capital gains are not crystallised at departure. Tax is realised only when the property is actually sold, and by that point you are a non-resident, which triggers a different regime (CRA certificate of compliance under section 116, withholding obligation on the buyer or notary).

RRSP and RRIF accounts are not subject to deemed disposition. You can keep these accounts after leaving Canada. Distributions while you are a non-resident are subject to Canadian withholding tax: 25% under domestic law, reduced to 15% under Article XVIII paragraph 2 of the Canada-US Tax Convention if the distribution qualifies as a periodic pension payment. Lump-sum withdrawals do not get the 15% treaty rate and remain at 25%.

TFSA accounts are not subject to deemed disposition either, but a different trap applies. A non-resident may continue to hold a TFSA, but any contribution made while non-resident triggers a 1% per month tax on the contribution as long as it remains in the account. The clean approach is to stop all TFSA contributions before the departure date and never contribute again until and unless Canadian residency is resumed.

Non-registered investment accounts (taxable brokerage, foreign stock holdings, private company shares, partnership interests) are the typical core of the deemed-disposition computation. The fair market value at the departure date sets the new cost base for US tax purposes, which is helpful for avoiding double taxation later. Section 220(4.5) of the Income Tax Act permits an election to defer payment of the departure tax by posting acceptable security to the CRA, which can be useful when the deemed-gain liability is large but the assets are illiquid.

OAS, CPP, and QPP, as set out in the verified-fact box at the top of this guide, are taxable only in the United States once US residency is established, under Article XVIII paragraph 5 of the Convention. Service Canada continues to pay benefits abroad. The 25% non-resident withholding rate that applies to non-treaty countries does not apply to US residents, and Canada does not withhold tax on these payments to US residents under the treaty. The benefits are reported on the US 1040 return as social-security-equivalent income, with up to 85% potentially included in US taxable income depending on overall income.

The takeaway: the T1 departure return is not optional and is not a routine year-end filing. It is the document that closes your Canadian tax life and sets the cost basis for everything you take into your US tax life. Do not file it without a cross-border tax advisor reviewing the deemed-disposition computation, the deferral election, and the registered-account treatment.

Section 05Step 3 : Sell or keep your Canadian principal residence

For most permanent movers, the Canadian principal residence is the single largest pre-departure decision. The PRE shelters capital gains on a property that has been designated principal residence for every year of ownership, and the deemed disposition that occurs on departure does not apply to Canadian real property in any case.

The cleanest sequence is to sell the principal residence before ceasing Canadian residency. The sale is reported on Schedule 3 of the final Canadian-resident T1 return, with Form T2091 used to designate the property as principal residence for the relevant years. The PRE shelters the gain and the proceeds are deposited free of withholding.

Selling after departure is permitted but introduces friction. The buyer (or, in Quebec, the notary) is required to withhold a percentage of the gross sale price under section 116 unless the seller obtains a CRA certificate of compliance, which requires the seller to remit estimated tax on the gain in advance. The PRE designation is still available for the years you were Canadian-resident, but the mechanics of obtaining the certificate are slow (six to twelve weeks is realistic) and can hold up the closing. The Canadian section 116 framework is structurally similar to the US FIRPTA framework that applies on the Florida side. Both exist for the same reason: governments do not want non-residents leaving with sale proceeds before the tax authority has its share. The detailed FIRPTA mechanics are covered in the FIRPTA 15% withholding guide.

The decision on whether to keep the Canadian home as a rental property after departure is a separate analysis with its own complications: change-in-use rules under section 45(2) of the Income Tax Act, ongoing Canadian tax filing obligations as a non-resident landlord under section 216, withholding tax on gross rents at 25%, and CRA non-resident reporting compliance. Most permanent movers eventually sell.

The takeaway: the principal residence sale is best closed before the departure date if the timing permits. Selling after departure is workable but slower and more expensive in administrative terms.

Section 06Step 4 : Move your household goods

The Canadian side of household export is administratively light. Canada does not require a customs export form for personal household effects of an emigrant. The moving company will produce its own commercial documentation and, where required, file a Canadian Export Reporting System (CERS) declaration for the commercial shipment. As a private mover, you do not file a separate CBSA form.

The US side is where the paperwork concentrates. Canadian moving into the United States with household effects must clear those effects through CBP, and the duty-free pathway is governed by CBP Form 3299 (Declaration for Free Entry of Unaccompanied Articles). The legal basis is in 19 CFR 148.6, 148.52, 148.53, and 148.77, with HTS subheading 9805.00.50 for the duty-free classification.

Three conditions must hold for duty-free entry under Form 3299:

1. The articles must have been owned and used abroad for at least one year by the importer or the importer's family in a household where they were a resident member.
2. The articles must not be intended for sale or for the account of any other person after import.
3. The importer must be in a category that qualifies (new immigrant, returning resident, or qualifying nonresident establishing US domicile). Tourist (B-2) status does not qualify.

The form is filed at the port of entry. CBP officers may inspect the shipment and request documentation supporting the one-year ownership condition. A detailed inventory listing each item with its estimated value is mandatory and is also useful for insurance purposes.

Restricted and prohibited categories are handled separately. Firearms require ATF Form 6NIA in advance. Plants, certain food products, and some wood products are subject to USDA and Animal and Plant Health Inspection Service (APHIS) controls. Vehicles permanently imported require EPA Form 3520-1 (emissions conformity) and DOT Form HS-7 (safety conformity), and the full procedure is covered in the permanent vehicle import guide.

The takeaway: Form 3299 is the gating document on the US side. Without it, the duty-free import does not happen, and the household effects can be held by CBP or assessed at full duty.

Section 07Step 5 : Establish Florida residency

Florida residency is not a single document. It is a pattern of behaviours and registrations that, taken together, demonstrate intent to make Florida your permanent legal home. The state and the IRS both look at the same indicators (driver licence, vehicle registration, voter registration where eligible, homestead, financial accounts, declared address, time spent), and the cumulative pattern is what counts.

Two specific deadlines start running the moment you take up domicile in Florida.

Florida Class E driver licence: 30 days. Florida law requires new residents to obtain a Florida driver licence within 30 days of establishing residency. The application is in person at any FLHSMV office. A valid Canadian licence in good standing typically allows the holder to skip the written and road tests, with only a vision test required. The fee for an initial Class E licence is approximately USD 48, plus the surrender of the Canadian licence at the time of application. The full procedure is in the Florida Class E driver licence guide and the Canadian driver licence exchange guide.

Florida vehicle title and registration: 10 days. A vehicle brought to Florida for use must be titled and registered within 10 days of establishing residency, securing employment, or enrolling a child in a Florida public school. Florida insurance with the statutory minimums (USD 10,000 PIP, USD 10,000 PDL) must be in place at the time of registration: a Canadian or out-of-state policy is not accepted. The full procedure is in the vehicle registration guide.

Florida Homestead Exemption: file by March 1. If you own and occupy your Florida home as your permanent residence (domicile) on January 1 of the tax year, you may apply for the Homestead Exemption with your county property appraiser by March 1. The exemption removes up to USD 50,000 from the assessed value of the property (USD 25,000 for all taxes, plus an additional USD 25,000 for non-school taxes that is now CPI-adjusted under Amendment 5 approved by Florida voters in November 2024). The exemption also activates the Save Our Homes cap, which limits annual increases in assessed value to 3% or the change in the Consumer Price Index, whichever is lower. The full procedure is in the Homestead Exemption guide and the Save Our Homes 3% cap guide.

Financial accounts and ITIN. Canadian banks differ in their willingness to keep retail accounts open for clients who have become US residents. Some institutions impose restrictions on registered accounts (RRSP, RRIF) once the holder is non-resident, particularly on trade execution. Confirming the institution's non-resident policy in writing before departure is more reliable than assuming continuity. On the US side, a US bank account is needed for everyday operations. Canadians who do not have a Social Security Number need an ITIN to be tax-reportable on US accounts, file US tax returns, or take title to US real property in their own name. The application is on IRS Form W-7 and is covered in detail in the ITIN guide.

The takeaway: the 30-day, 10-day, and March 1 deadlines are the only hard timing constraints on the Florida side, and missing them creates immediate, measurable cost (driving on a non-Florida licence past 30 days, driving on a non-Florida-registered vehicle past 10 days, paying full property tax for a year because the Homestead application went in on March 2).

Section 08Step 6 : The administrative loose ends

The last group of tasks does not have a single hard deadline, but each one creates a slow leak if neglected.

Provincial health card. Provincial health insurance ceases when you cease provincial residency, and the rules vary by province: RAMQ (Quebec) requires departure notification, OHIP (Ontario) ends coverage after extended absence under specific rules, MSP (British Columbia) similarly, and the other provinces operate their own residency tests. The provincial health card is no longer valid for non-residents and should be returned or cancelled in writing. Private US health coverage must be in place from the day of departure: a gap of even a few days is risk that does not need to be carried. The chapter on Health and insurance covers the US private market for Canadians.

Voter registration. Canadian citizens may remain on the federal voter list as international electors and vote by mail in federal elections. The procedure is in the overseas voting guide. Provincial voting eligibility ends with provincial residency. Florida voter registration requires US citizenship, which Canadian permanent residents do not have until naturalisation.

Consular registration. Registration of Canadians abroad with Global Affairs Canada is voluntary but recommended for emergencies. The overseas Canadian registration guide covers the Registration of Canadians Abroad service.

Mail forwarding and US address. A US mailing address is a foundational document for nearly every Florida registration. The US mailbox and mail forwarding guides cover the practical mechanics.

Notify CRA. A short letter or My Account update to the CRA confirming the departure date and providing the new US address closes the loop on Canadian tax filing. The CRA uses this to issue NR4 information slips for any Canadian-source income paid in the year of departure or after.

The takeaway: these are the items that fall to the bottom of every move list and resurface weeks later as friction. They are not hard, but they are easy to miss.

Section 09CA ↔ FL comparison table

The four-track structure of a permanent move is easier to read as a side-by-side. Levels of jurisdiction are explicit because each item is governed at a specific level.

Section 10Worked example: a Quebec couple moving to Boca Raton

Marie and Jean (ages 58 and 60, Outremont, Quebec) hold EB-2 NIW green cards approved in October. They plan to relocate to Boca Raton, Florida in February of the following year, after selling their primary residence and winding down their Canadian tax position. Their financial picture before departure:

• Outremont home: CAD 1,400,000 fair market value, mortgage paid, owned since 2006, principal residence every year.
• Non-registered investment account: CAD 850,000, with CAD 240,000 unrealised capital gain across the portfolio.
• RRSP (Marie): CAD 620,000.
• TFSA (joint): CAD 195,000 combined.
• CPP (both): combined CAD 2,150 per month at age 65.
• OAS (both): combined CAD 1,490 per month at age 65 (full benefit).

Canadian side, year of departure (February). They list the home in October of the previous year and close in early January, before the February departure date. The PRE shelters the gain on the Outremont home. Schedule 3 with Form T2091 designates principal residence for every year of ownership.

The non-registered account triggers deemed disposition on the February departure date. The CAD 240,000 unrealised gain is realised on the T1 departure return for the year, with 50% (CAD 120,000) included in taxable income. Combined federal and Quebec tax on this inclusion runs in the order of CAD 50,000 to CAD 60,000 depending on the marginal rate, and is paid with the T1 (or deferred under section 220(4.5) by posting security).

The RRSP is not affected by deemed disposition. They keep it. Future RRIF distributions will be taxed at 15% Canadian withholding under Article XVIII paragraph 2 of the Convention.

The TFSA is not affected by deemed disposition either. They stop all contributions on the day before the departure date. They keep the account open but make no further contributions while non-resident.

CPP and OAS, when they begin, will be paid abroad with no Canadian withholding (Article XVIII paragraph 5 of the Convention). The benefits will be reported on their joint US 1040 as social-security-equivalent income, with up to 85% potentially taxable depending on overall income.

Customs side, day of physical move. Their moving company crosses the border in February with the household contents. At the port of entry, they present CBP Form 3299, the inventory, and their green cards. Because the items have been owned and used in the Outremont household for more than one year and are not for sale, the entry is duty-free under HTS 9805.00.50. Their two vehicles are imported at the same crossing under EPA Form 3520-1 and DOT Form HS-7.

Florida side, first 30 days. They take possession of the Boca Raton home in early February. Within 10 days, both vehicles are titled and registered with the Palm Beach County Tax Collector. Within 30 days, both spouses obtain Florida Class E licences at the local FLHSMV service centre. They open a US bank account, apply for an ITIN for Marie (Jean already had an SSN from a prior US assignment), and update their Canadian banking and brokerage on file with the new US address.

Florida side, the following March 1. They file the Homestead Exemption application with the Palm Beach County Property Appraiser, supported by their green cards, Florida driver licences, Florida vehicle registrations, and Boca Raton utility statements. The exemption is approved, removing up to USD 50,000 from the assessed value (plus the CPI-adjusted increment under Amendment 5) and activating the Save Our Homes 3% cap from the year of approval onward.

Canadian side, April 30 of the year following departure. Their accountant files the T1 departure return for the year of departure. The return reports the deemed disposition, the principal residence sale with PRE designation, and the departure date on page 1. Provincial Quebec TP-1 follows the same logic.

Result. The couple's permanent move is closed cleanly. The PRE preserved approximately CAD 800,000 of accumulated gain on the Outremont home. The deemed disposition on the non-registered portfolio is the only departure tax cost, and it sets a stepped-up cost basis that the IRS recognises for future US capital-gains computations. CPP and OAS, when received, flow with no Canadian withholding. The Florida Homestead Exemption locks in long-term protection against rapid assessment increases.

Section 11Common mistakes

Treating B-2 admission as a path to permanent status. Repeated B-2 admissions with the de facto intent to stay is the classic preconceived-intent fact pattern. CBP can refuse entry, void future visas, and create a record that complicates any later immigration application.

Filing the year-of-departure return as a routine T1. A T1 departure return is structurally different: page 1 carries the departure date, the deemed-disposition computation is on Schedule 3, registered-account treatment is specific. A general-practice tax preparer who has not handled departures before is the wrong professional for this filing.

Continuing to contribute to the TFSA after the departure date. A 1% per month tax on the contribution accumulates until the contribution is withdrawn. Six months of contributions with the routine bank auto-debit can quickly exceed CAD 5,000 in penalty taxes.

Selling the Canadian principal residence after ceasing residency. Permitted but slower and more expensive in administrative terms, with section 116 certificate of compliance friction and notary or buyer withholding obligations. Closing before the departure date is cleaner.

Missing the 30-day FLHSMV window or the 10-day vehicle window. A Canadian licence is not a Florida licence, a Canadian registration is not a Florida registration, and FLHSMV enforcement against new residents is real. Driving on a non-Florida licence at day 31 is a documented violation.

Applying for Florida Homestead Exemption while still holding active Canadian primary residency markers (RAMQ, provincial driver licence, Canadian voter registration). Property appraisers can and do challenge homestead applications where the applicant's domicile evidence points to two countries. Pick one.

Waiting until the second tax year to obtain an ITIN. ITIN processing has historically run 7 to 11 weeks. Starting the W-7 the day before a Florida real estate closing or the first US tax filing creates avoidable timing pressure.

Assuming Canadian financial institutions will keep all accounts open without restriction once you are a US resident. Some institutions restrict trading on registered accounts for US-resident clients (regulatory disclosure obligations). Confirm in writing before departure.

Believing the old version of the OAS/CPP withholding rule. The 25% non-resident withholding rate that applies to non-treaty countries does not apply to US residents under the treaty. CPP, QPP, and OAS to US residents flow with no Canadian withholding. Accountants and online articles that have not been updated for the treaty position will produce incorrect tax filings on both sides.

Forgetting NR4 information slips. Any Canadian-source income paid to you after the departure date generates an NR4 slip from the payer. Track these for the US 1040 foreign-tax-credit computation.

Section 12Step-by-step checklist

12 to 18 months before departure

1. Confirm immigration status is filed and on track.
2. Engage a cross-border tax advisor with Canada-US experience.
3. Map the timing of principal residence sale relative to departure date.
4. Inventory non-registered assets for deemed-disposition planning.
5. Identify which Canadian financial accounts will be kept, restricted, or closed.

6 to 12 months before departure

1. Get three quotes from CBP-bonded cross-border moving companies.
2. Plan TFSA wind-down: stop new contributions effective on the planned departure date.
3. Decide on vehicle import (each vehicle is a separate EPA/DOT determination).
4. Begin Florida home search if not already in possession.
5. Plan US private health coverage to start on the departure date.

3 to 6 months before departure

1. List the Canadian principal residence (if selling before departure).
2. Notify the provincial health authority of upcoming departure.
3. Prepare the household inventory for CBP Form 3299.
4. Apply for ITIN if no SSN and US tax events are upcoming.
5. Open a US bank account if possible (some banks offer cross-border products).

Day of departure

1. Confirm departure date with cross-border tax advisor (this date drives the T1).
2. Cross border with the moving truck or arrange CBP entry of unaccompanied articles with Form 3299.
3. Surrender the Canadian principal residence keys (if sale closed) or finalise rental management.

Within 10 days of taking up Florida domicile

1. Title and register vehicle(s) at the county Tax Collector with proof of Florida insurance.

Within 30 days of taking up Florida domicile

1. Obtain Florida Class E driver licence at FLHSMV. Surrender Canadian licence.

Within 60 to 90 days

1. Update all Canadian financial institutions with the new US address.
2. Notify CRA in writing or via My Account of departure date and new address.

By March 1 of the year following Florida residency taken on January 1

1. File Florida Homestead Exemption application with the county property appraiser.

By April 30 of the year following departure

1. File T1 departure return (federal CA) and provincial equivalent (TP-1 for Quebec). Include Schedule 3 for principal residence designation, deemed-disposition computation, and any section 220(4.5) deferral election.

Section 13Frequently asked questions

Q. Can I use my Canadian driver licence in Florida indefinitely if I do not formally establish residency?

A. No. The 30-day rule starts the moment you establish residency, which Florida defines through behavioural indicators (employment, rental or ownership of a residence, school enrolment, vehicle registration). A Canadian licence is fine for visitors. It is not fine for permanent residents.

Q. Do I have to sell my Canadian home before becoming a US resident?

A. No. Canadian real property is not subject to deemed disposition on departure. You can keep it and sell later as a non-resident, subject to section 116 certificate of compliance and PRE designation for the years you were Canadian-resident. The trade-off is administrative friction at the later sale.

Q. Will the IRS tax my CPP and OAS even though Canada paid them?

A. Yes. Under Article XVIII paragraph 5 of the Convention, CPP, QPP, and OAS paid to US residents are taxable only in the United States, treated as social-security-equivalent income. Up to 85% may be included in US taxable income depending on overall income. Canada does not withhold tax on these payments to US residents.

Q. Can I keep my RRSP?

A. Yes. You can keep the RRSP after becoming a US resident. There is no deemed disposition on the RRSP at departure. Future periodic distributions are subject to 15% Canadian withholding under Article XVIII paragraph 2 of the Convention. Lump-sum withdrawals are subject to 25%. The US side requires reporting on the 1040 and may require Form 8833 to claim treaty positions.

Q. Is my Florida Homestead Exemption application going to be approved if I hold only a TN or E-2 visa?

A. Florida property appraisers evaluate domicile on a totality-of-evidence basis. A long-term nonimmigrant status without permanent residence is harder to defend on a homestead application than an LPR status, and the evidence required will likely include a written declaration of intent and supporting indicia (Florida driver licence, vehicle registration, US tax filings, lack of competing Canadian primary residency markers). Practical guidance from local counsel is recommended before filing.

Q. What happens if I miss the March 1 Homestead deadline?

A. The exemption is forfeited for that tax year and must be applied for in the following year. Some counties allow late applications under documented extenuating circumstances, but the safe assumption is that March 1 is hard.

Q. Do I need an ITIN if my spouse has an SSN?

A. Yes, in many cases. Both spouses appearing on US tax filings, US real estate title, or US-issued tax-reporting documents need a tax identification number. The ITIN is the standard solution for the spouse without SSN eligibility.