Calgary to Dallas: Energy, Land Wealth, and One of the Cleanest Rate Drops on the Map

Calgary and Dallas are both energy cities that have diversified into finance and corporate headquarters, and the corridor between them carries energy executives, finance professionals, and engineers. The tax picture is a clean cut: Alberta's combined top rate of about 48% becomes a federal-only 37%, with no Texas income tax. Texas charges property tax instead, and Alberta charges the lightest departure tax in Canada on the way out.

Key takeaways

• Alberta's roughly 48% top rate sets the departure tax. On a $300,000 unrealized gain, about $72,000.
• Texas has no state income tax; US tax is federal only.
• Alberta's 5% GST becomes 8.25% sales tax in Dallas.
• Dallas County property tax runs about 2% effective; Collin County (Plano, Frisco) slightly lower. File the homestead application after you move in.
• AHCIP ends on permanent departure.

The Alberta departure

Departure tax applies to non-registered investments, private company shares, crypto, and foreign property at fair market value on the departure date. Alberta real estate, RRSPs, TFSAs, and pensions are excluded. Report on Form T1243, list holdings on Form T1161 if the total exceeds $25,000, and post security under Form T1244 for illiquid assets. A Calgary corporation is deemed sold, loses CCPC status, and becomes a US controlled foreign corporation after the move; wind it up before you go.

Dallas's side

No income tax; property tax near 2% effective with a homestead exemption and a 10% annual appraisal cap; 8.25% sales tax; no estate tax; strong homestead creditor protection.

The RRSP in Texas

Untouched on departure, federally deferred under the treaty, with no Texas layer. Withdrawals face 25% Canadian withholding on lump sums, 15% on periodic RRIF payments within the treaty limit, with a US foreign tax credit.

Who makes this move

Calgary energy executives to Dallas's energy companies and private equity, Alberta finance professionals to the banks and asset managers in Uptown and Plano, and Calgary engineers to DFW's aerospace and manufacturing employers.

Worked example

A Calgary energy executive moves to Dallas on June 30 with $400,000 of unrealized gain in a non-registered account, $900,000 in an RRSP, a holding company with $400,000 of investments, and a Calgary home sold in the departure year.

• Departure tax. $400,000 gain, $200,000 taxable, at about 48%: roughly $96,000, plus the holding company shares.
• Holding company. Wind up before June 30 or accept Form 5471 in the US.
• Home. Sold as a resident under the principal residence exemption.
• RRSP. No tax on departure; periodic withdrawals later at 15%.
• Dallas. No state income tax. GST 5% becomes sales tax 8.25%. Property tax on a $900,000 home around $17,000 before homestead.

Official sources

"When you leave Canada, you are considered to have sold certain types of property (even if you have not sold them) at their fair market value (FMV) and to have immediately reacquired them for the same amount. This is called a deemed disposition and you may have to report a capital gain (also known as departure tax)." — Canada Revenue Agency, Leaving Canada (emigrants), https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/leaving-canada-emigrants.html

"Texas imposes a 6.25 percent state sales and use tax on all retail sales, leases and rentals of most goods, as well as taxable services. Local taxing jurisdictions (cities, counties, special purpose districts and transit authorities) can also impose up to 2 percent sales and use tax for a maximum combined rate of 8.25 percent." — Texas Comptroller of Public Accounts, Sales and Use Tax, https://comptroller.texas.gov/taxes/sales/

Alberta's top personal income tax bracket: "15%" on "$362,961.01 and up" (2025). — Government of Alberta, Personal income tax, https://www.alberta.ca/personal-income-tax

Practitioner note

Calgary-to-Dallas files often include a holding company with retained investments. It has to be dealt with before departure; after the move it is a controlled foreign corporation with annual Form 5471 filings and no tax-free capital dividend account.

See also: Weighing Florida instead? See the Canada-to-Florida guide, or the same city's Calgary to Miami guide.

Next step

Fairlight prepares the Alberta departure return, the corporate wind-up, and the first-year US return for Dallas clients. See cross-border pricing or book a call.