Planning Before You Leave: A Checklist and How to Choose the Timing

Your departure date, the order in which to deal with assets, what to arrange in advance

Scott Tang, CPAUpdated 2026-11-052026 rules5 min read

The year you leave Canada is when everything gets settled at once: departure tax, your home in Canada, your RRSP, benefits and accounts are all decided in and around that year. Depending on which day you leave and which assets you deal with first, the tax on the very same assets can differ a great deal. We recommend starting to plan 6–12 months ahead.

6–12 months

How far ahead we recommend starting to plan

Departure date

Sets the market values used for departure tax, and the day your resident period ends on the departure-year return

April 30 of the next year

The usual deadline for the T1 and T1161 (June 15 for eligible self-employed people); the T1244 and any balance owing are usually due April 30; the budget proposes a single May 15 filing and payment deadline for individuals from the 2027 taxation year (not yet law)

Non-resident rules

After you leave, rent from Canada, your RRSP and property sales are dealt with under the non-resident rules

Timeline

1
12 months ahead
List your assets, estimate departure tax, set the overall direction
2
6 months ahead
Fix the moving date, decide whether to sell or rent out your home, decide how to withdraw from your RRSP
3
Before you leave
Deal with your accounts, notify your banks, arrange an agent for the rent
4
Departure day
Record your assets' market values, move out, sever your ties
5
After you leave
Departure-year return, NR6 or section 216, clearance certificate

Choosing your departure date

Consideration	Leave early in the year short resident period that year	Leave late in the year long resident period that year
Wages and income in the year you leave	✓Less income while resident, so a lower tax rate	◐The whole year's income is reported in Canada
Asset market values	◐Depends on the market at the time	◐Depends on the market at the time
Benefits	◐Stop once you no longer qualify	◐Based on your eligibility month by month; you won't necessarily receive the full amount
Things to arrange	—Little time before you leave, so prepare early	—Plenty of time

Wages and income in the year you leave

⏪ Leave early in the year: ✓Less income while resident, so a lower tax rate
⏩ Leave late in the year: ◐The whole year's income is reported in Canada

Asset market values

⏪ Leave early in the year: ◐Depends on the market at the time
⏩ Leave late in the year: ◐Depends on the market at the time

Benefits

⏪ Leave early in the year: ◐Stop once you no longer qualify
⏩ Leave late in the year: ◐Based on your eligibility month by month; you won't necessarily receive the full amount

Things to arrange

⏪ Leave early in the year: —Little time before you leave, so prepare early
⏩ Leave late in the year: —Plenty of time

You can compare different genuine moving arrangements, but your tax departure date is ultimately determined by your actual residential ties and the treaty — you can't just pick a date that works out well. When assets are rising or falling sharply, the departure date directly affects your departure tax; if you hold private company shares or a large amount of stock, look at the timing together with a valuation.

What to deal with before you leave

Your home in Canada
Sell it or rent it out? If you rent it out, find an agent and prepare the NR6 before you leave. If you sell, selling before you leave is often simpler than selling afterwards (after you leave, you need a section 116 clearance certificate).
RRSP
Withdraw part of it in a low-income year before you leave, or withdraw after you leave with non-resident withholding? Run the numbers first.
Banks and brokerages
Tell your financial institutions the date you became a non-resident; some accounts can't be held, or traded in, by non-residents.
TFSA
You can keep it; contributions after you leave are taxed at 1% a month, and you don't earn new room while you are a non-resident. If you want to contribute, do it before you leave.
Benefits
Tell the CRA your departure date: the Canada Child Benefit (CCB), the CGEB and other benefits stop, and telling the CRA avoids overpayments you would have to pay back.
Private corporation
If you are a director and shareholder, the company's management, signing authority and residence status need separate arrangements after you leave.

Points to watch

Really sever your ties
If your home sits empty or your family stays behind, the CRA may consider that you haven't left; see "You've Left Canada: Could the CRA Still Treat You as a Resident?" in this series.
Look at both sides
Plan around your new country's tax rules, and how it sets your cost base, together with Canadian departure tax, to avoid being taxed twice.
Departure-year forms
File the T1243, T1161 and T1244 with your departure-year return; see "How to File Your Tax Return for the Year You Leave" in this series.

How Sheng Qian CPA can help

A departure timeline
Starting 12 months ahead, we list every step you need to take and its deadline.
The options compared
We work out the tax under each option: the departure date, selling or renting out your home, withdrawing from your RRSP before or after you leave.
Continuing after you leave
The departure-year return, reporting rental income and the clearance certificate when you sell, followed up by the same team. For prices, see "What Sheng Qian CPA Can Do for Newcomers and People Leaving Canada: Support on Arrival and on Departure" in this series.

Sources

CRA: Emigrants and income tax · Non-residents and income tax (T4058)
CRA: Form NR6

Disclaimer

This article is general information only and is not tax advice. Everyone's situation is different; please consult a CPA about your specific arrangements, and a qualified local adviser about tax questions in your new country. Service fees are as set out in our written quote.