Updated Checked by the Tax-Services.ca editorial team How we check
States without state tax do exist in the US. Florida’s revenue department says plainly that Florida has no personal income tax. But if you’re a Canadian resident, that changes nothing on your Canadian return, because the CRA taxes you on income from inside and outside Canada until you stop being resident.
Which US states without state tax can we name?
Only one, with a source: Florida. Lists online commonly name about nine states, but we could only confirm Florida on the state’s own revenue site. Check the department of revenue in any other state before you count on it.
Two more points. “No income tax” doesn’t mean no tax. States that skip the income tax collect money through sales taxes, property taxes and other charges, and we haven’t priced those. And federal US tax still applies to what you earn there.
Does moving south make you a non-resident for tax?
Not by itself. Here’s how the CRA puts the test:
You are a factual resident of Canada for income tax purposes if you keep significant residential ties in Canada
Factual residents, Temporarily outside of Canada, CRA, canada.ca
So it’s ties, not a calendar. The CRA looks at them one by one. It says the most important are a home in Canada, a spouse or common-law partner in Canada and dependants in Canada. Secondary ties include a car or furniture, a Canadian bank account or credit card, and memberships in Canadian clubs.
Spend winters in Florida and keep the house, the spouse and the bank account? The CRA page on Canadians going south says it usually treats you as a factual resident. You report all income from sources inside and outside Canada and pay federal tax plus tax to the province where you keep your ties. It also warns that provincial health coverage may not follow you, so you may want extra cover.
That’s why a sunny address on a lease doesn’t cut your bill.
What does a snowbird’s year look like on paper?
Take Ruth and Dan from Winnipeg. They winter in Florida, keep their house and their Canadian bank accounts, and come home in spring. Florida charges them no state income tax, which is nice. But Canada still wants a return from each of them showing worldwide income, and the Florida sunshine doesn’t change the federal or Manitoba bill. If you’re in their shoes, keep your slips from both countries and ask a cross-border accountant about the treaty before you assume anything.
What happens if you really do leave Canada?
You may owe tax on the way out. The CRA says that when you cease to be resident you’re treated as having sold certain property at fair market value and bought it back at once. Any gain is reported on Form T1243. If all your property was worth more than $25,000 when you left, you also list it on Form T1161.
The exceptions matter. The CRA lists Canadian real property, RRSPs, TFSAs and several other plans as outside the deemed sale. So the tax often lands on things like non-registered shares, not the family home. Whether that applies to you is a question for a cross-border accountant, because the CRA page alone won’t settle your case.
US citizens are a special case. The IRS says its treaty publication lets the US keep taxing its citizens and green card holders as if the treaty didn’t exist. Living in Canada doesn’t stop that filing.
How does Canada’s provincial tax compare?
Canada has no states, but every province taxes income, and the gap between them is real. This table shows federal plus provincial income tax on a $90,000 salary for a single person, from our income tax calculator on 2026 rules. We left out BC, because its lowest 2026 rate differs between official sources, and Manitoba, because our data file and the CRA page disagree on its brackets.
| Province | Income tax on $90,000 |
|---|---|
| Alberta | $16,722 |
| Ontario | $17,034 |
| Saskatchewan | $18,643 |
| Quebec | $19,880 |
So Alberta is the lightest of these four, and Quebec the heaviest. The spread is about $3,160 a year. Run your own income through the income tax calculator, then look at the marginal tax rate calculator to see what your next dollar costs. The take-home pay calculator adds CPP, QPP and EI to the picture.
A caution on that table: it doesn’t include sales tax, property tax or the cost of living. A province with lower income tax isn’t automatically cheaper to live in.
Is a no-income-tax state really cheaper?
Not automatically. Add up what you’d pay in sales tax, property tax, health insurance and the exchange rate on your pension cheque before you decide. Our table above is only the income tax slice, and it’s the slice that disappears first when people move south, then the other bills show up.
Our sources
The Florida statement comes from the Florida Department of Revenue. Residency and departure rules come from CRA pages on determining residency, factual residents going south and dispositions of property by emigrants. The treaty note is from the IRS. Provincial tax figures are from our engine and 2026 federal and provincial data. This site isn’t linked to the CRA, the IRS or any government.
Frequently asked questions
Which states have no state income tax?
Florida's revenue department says Florida has none. Online lists name about nine states, but we only confirmed Florida, so check each state's revenue site.
Do I pay Canadian tax if I winter in Florida?
Usually yes. The CRA usually treats people who keep their Canadian ties as factual residents, taxable on income from inside and outside Canada.
What are significant residential ties?
A home in Canada, a spouse or common-law partner in Canada and dependants in Canada. Secondary ties include bank accounts, a car or furniture and memberships.
Is there tax when I leave Canada for good?
You are treated as having sold certain property at fair market value on departure and may report a gain on Form T1243. Registered plans like RRSPs and TFSAs are among the exceptions.
Which province has the lowest income tax?
Among the four we ran on $90,000, Alberta came out lowest at $16,722. We left out BC and Manitoba because official sources disagree on their figures.