Calgary to Seattle: Energy to Tech, No Income Tax, and the Capital Gains Excise

Calgary's engineers, data scientists, and analysts are landing at Amazon, Microsoft, Boeing, and Seattle's startup scene. The move trades Alberta's combined top rate of about 48% for a federal-only 37% on salary, a clean cut. Equity is the exception: Washington's capital gains excise applies to large stock sales, and for a tech worker with a concentrated RSU position it can exceed what Alberta would have charged.

Key takeaways

• Alberta's roughly 48% top rate sets the departure tax. On a $300,000 unrealized gain, about $72,000.
• Washington has no income tax on wages or ordinary investment income.
• Washington taxes long-term capital gains above roughly $270,000 a year at 7%, plus 2.9% above $1 million. Stock and RSU sales are covered.
• Alberta's 5% GST becomes about 10.35% sales tax in Seattle.
• Washington's estate tax exemption is about $3 million; Alberta has no estate tax. 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. AHCIP ends on permanent departure.

Seattle's side

No state income tax on wages or ordinary investment income; a 7% excise on long-term capital gains above roughly $270,000 a year (indexed), plus 2.9% on gains above $1 million, with exemptions for real estate and retirement accounts but not stock or RSU sales; sales tax about 10.35% in Seattle; B&O gross receipts tax on businesses and consultants; property tax near 1% in King County; estate tax with an exemption near $3 million and rates to 35%.

The RRSP in Washington

Untouched on departure, federally deferred under the treaty, no state income tax to break the deferral, and exempt from the capital gains excise as a retirement account. Withdrawals face 25% Canadian withholding on lump sums, 15% on periodic RRIF payments within the treaty limit, with a US foreign tax credit.

RSUs and the excise

Vests are ordinary income, split between Canada and the US by working days, and not subject to the excise. Sales of vested shares are capital transactions: a large sale in one year can cross the threshold and trigger the 7%. Sell in tranches, or realize gains in Canada before departure.

Who makes this move

Calgary software engineers and data scientists to Amazon, Microsoft, and the Seattle startup scene, Alberta aerospace engineers to Boeing, and Calgary energy analysts to Seattle's clean-energy and cloud-infrastructure firms.

Worked example

A Calgary data scientist moves to Seattle on May 31 with $200,000 of unrealized gain in a non-registered account, $400,000 in an RRSP, RSUs vesting quarterly after the move, and a Calgary home sold in the departure year.

• Departure tax. $200,000 gain, $100,000 taxable, at about 48%: roughly $48,000.
• Home. Sold as a resident under the principal residence exemption.
• RRSP. No tax on departure; exempt from the excise.
• RSUs. Vests are ordinary income split by working days; subsequent sales above the threshold face the 7% excise. Sell in tranches.
• Seattle. No state income tax. GST 5% becomes sales tax 10.35%.

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

Washington's capital gains tax is "a 7% tax on the sale or exchange of long-term capital assets such as stocks, bonds, business interests, or other investments and tangible assets." — Washington State Department of Revenue, Capital gains tax, https://dor.wa.gov/taxes-rates/other-taxes/capital-gains-tax

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

Alberta-to-Seattle is a two-line file: salary, which is a clean cut, and equity, which is not. We build the RSU sale schedule against Washington's annual threshold before the move, and where the gain is already large we look at realizing it in Alberta.

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 equity timing plan, and the first-year US return for Seattle-area clients. See cross-border pricing or book a call.