Montreal to Portland: Gaming, the Departure Tax, and Zero Sales Tax

Portland's gaming studios, its semiconductor cluster, and its outdoor-industry brands recruit Montreal's game developers and engineers. The tax picture is nearly lateral on income: Quebec's combined top rate of about 53.3% becomes about 51% inside Portland. The consumption tax shift is dramatic: Quebec's 14.975% becomes zero. 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.
• Oregon's top rate is 9.9%; Portland's county and Metro taxes push the combined top rate near 51%.
• Oregon follows the treaty's RRSP deferral.
• Quebec's 14.975% combined GST and QST becomes zero. 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. A Montreal condo kept and rented brings NR6 and Section 216 federally plus Quebec equivalents.

Portland's side

Oregon's graduated state income tax tops out at 9.9% above roughly $125,000 (single); Portland residents in Multnomah County also pay the Preschool for All tax (1.5% above $125,000 single, 3% above $250,000) and the Metro Supportive Housing Services tax (1% above $125,000), which together push the combined federal, state, and local top rate near 51%; no sales tax anywhere in Oregon; property tax near 1% effective; estate tax on estates above $1 million with rates from 10% to 16%.

The RRSP in Oregon

Federally deferred under Article XVIII of the treaty and deferred for Oregon because the state starts from federal taxable income. Withdrawals face 25% Canadian withholding on lump sums, 15% on periodic RRIF payments within the treaty limit, a US foreign tax credit federally, and Oregon's graduated rates.

Who makes this move

Montreal game developers to Portland's studios, Quebec semiconductor engineers to Intel Hillsboro, Montreal AI and software talent to Portland's tech employers, and Quebec outdoor-industry professionals to Nike and Columbia.

Worked example

A Montreal game developer moves to Portland on July 31 with $180,000 of unrealized gain in a non-registered account, $350,000 in an RRSP, and a Rosemont condo sold in the departure year.

• Departure tax. $180,000 gain, $90,000 taxable, at about 53.3%: roughly $48,000 across the T1 and TP-1. Cheaper than Oregon's ordinary-rate treatment later.
• Condo. Sold as a resident under the principal residence exemption on both returns.
• RRSP. No tax on departure; federal and Oregon deferral.
• Portland. Combined top rate about 51%. Sales tax 14.975% becomes zero.

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/

"…plus 9.9% of the excess over $125,000." — Oregon Department of Revenue, 2025 tax rate charts, Form OR-40, https://www.oregon.gov/dor/programs/individuals/pages/pit.aspx

Income over $125,000 is taxed at rate of 1.5% and an additional 1.5% (3% total) on income over $250,000. — Multnomah County, Preschool for All Personal Income Tax, https://www.multco.us/finance/preschool-all-personal-income-tax

Practitioner note

Montreal-to-Portland clients often assume the move is tax-neutral and skip planning. The income tax is close to neutral; the pre-departure gain realization, the TP-1 departure date, and Oregon's $1 million estate exemption are not.

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, Oregon, and local returns for Portland clients. See cross-border pricing or book a call.