Montreal to Columbus: Fintech, the JPMorgan Corridor, and Ohio's Flat Tax Plus City Tax

Montreal's fintech and finance professionals land at JPMorgan Chase, Nationwide, and Huntington in Columbus, and its AI and data talent lands in the region's growing tech and data centre sector. The move is a large tax cut: Quebec's combined top rate of about 53.3% becomes about 42% in Columbus. The departure year runs through Revenu Québec, the CRA, and the IRS.

Key takeaways

• Two Canadian departure returns: the federal T1 and Revenu Québec's TP-1, with matching departure dates.
• Quebec's roughly 53.3% top rate sets the departure tax. On a $300,000 unrealized gain, about $80,000.
• Ohio's flat 2.75% state tax plus Columbus's 2.5% city tax, about 5.25% combined.
• Ohio follows the treaty's RRSP deferral.
• Quebec's 14.975% combined GST and QST becomes 7.5% sales tax. RAMQ ends on departure.

The three-authority departure

The federal deemed disposition applies to non-registered investments, private company shares, crypto, and property outside Canada; Quebec mirrors it. Report on federal Form T1243 (with T1161 if the property list exceeds $25,000) and on the Quebec equivalents. RAMQ ends when you leave Quebec to settle outside Canada. QPP paid later to an Ohio resident is taxable only in the US federally and exempt from Ohio tax as a Social Security-type benefit.

Columbus's side

Flat 2.75% state income tax; 2.5% Columbus municipal income tax, with suburbs charging their own; 7.5% sales tax in Franklin County; property tax near 1.5% to 2%; no estate tax.

The RRSP in Ohio

Federally deferred under Article XVIII of the treaty and deferred for Ohio. Canadian withholding is 25% on lump sums, 15% on periodic RRIF payments within the treaty limit, with a US foreign tax credit federally. Ohio municipal income tax generally does not apply to retirement income.

Who makes this move

Montreal fintech and banking staff to JPMorgan Chase's Columbus operations, Quebec insurance professionals to Nationwide, Montreal AI and data engineers to the region's tech and data centre employers, and Quebec aerospace engineers to central Ohio's manufacturers.

Worked example

A Montreal fintech engineer moves to Columbus on July 31 with $160,000 of unrealized gain in a non-registered account, $350,000 in an RRSP, and a Rosemont condo sold in the departure year.

• Departure tax. $160,000 gain, $80,000 taxable, at about 53.3%: roughly $43,000 across the T1 and TP-1.
• Condo. Sold as a resident under the principal residence exemption on both returns.
• RRSP. No tax on departure; federal and Ohio deferral.
• Columbus. Combined top rate about 42%. Sales tax 14.975% becomes 7.5%.

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

Revenu Québec sets out the income tax obligations of individuals who cease to be resident in Québec, including the deemed disposition of property on departure. — Revenu Québec, Leaving Québec, https://www.revenuquebec.ca/en/citizens/your-situation/residence-status-and-tax-obligations/leaving-quebec/

Ohio's individual income tax rates and brackets are published by the Department of Taxation. — Ohio Department of Taxation, Annual Tax Rates, https://tax.ohio.gov/individual/resources/annual-tax-rates

Practitioner note

Quebec-to-Columbus files have four returns in the departure year (T1, TP-1, 1040, Ohio IT-1040) plus a Columbus municipal return. Five filings, one departure date. We reconcile the date across all five before the first one is filed.

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

Next step

Fairlight prepares the T1, the TP-1, and the first-year federal, Ohio, and municipal returns. See cross-border pricing or book a call.