Moving from Canada to Georgia: A Falling Flat Tax, Atlanta's HQs, and the Film Industry

Atlanta is a Fortune 500 headquarters city, a fintech capital, and, alongside Toronto and Vancouver, one of North America's largest film production centres. Canadians arrive through all three. Georgia's tax system is a flat income tax cut to 4.99% for 2026, no city income tax anywhere in the state, and moderate property and sales taxes.

Key takeaways

• Georgia's flat income tax is 4.99% for 2026, cut from 5.19% on January 1, with further reductions scheduled. No city income tax.
• Georgia starts from federal AGI, so the treaty's RRSP deferral flows through.
• Sales tax is 8.9% in the City of Atlanta, 7% to 7.75% in most suburbs.
• Property tax is near 1% effective with county homestead exemptions.
• No estate tax. Georgia excludes a large amount of retirement income for taxpayers 62 and older.

The Canadian departure

Departure tax applies to non-registered investments, private company shares, crypto, and foreign property at fair market value on the day you leave. Canadian 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 to defer tax on illiquid assets. The rate is your province's: on a $300,000 unrealized gain, roughly $72,000 from Alberta and $80,000 from Ontario, Quebec, or BC. Provincial health coverage ends around your departure date; confirm the exact date with your plan and arrange US coverage to start the same month.

US federal side

Dual-status return in the arrival year, FBAR on Canadian accounts above $10,000 aggregate, Form 8938 above thresholds, and the RRSP treaty deferral federally. The TFSA loses its tax-free status the day you become a US person; close it before crossing. Equity compensation vesting after the move is split by working days between Canada and the US.

Georgia's side

Flat 4.99% income tax for 2026 under the state's rate-reduction schedule; no city income tax; 4% state sales tax plus local, 8.9% in the City of Atlanta and 7% to 7.75% in the suburbs; property tax near 1% effective with county homestead exemptions, some with assessment freezes; no estate tax. Georgia starts from federal AGI and excludes up to $65,000 of retirement income per person for taxpayers 65 and older ($35,000 from 62 to 64).

The RRSP

Federally deferred under Article XVIII of the treaty and deferred for Georgia because the state starts from federal AGI. Withdrawals face 25% Canadian withholding on lump sums, 15% on periodic RRIF payments within the treaty limit, a US foreign tax credit federally, and Georgia's flat rate after the retirement income exclusion, which can shelter most RRIF and pension income after 62.

Who makes this move

Canadian finance and technology professionals to Atlanta's Fortune 500 headquarters and fintech cluster, Toronto and Vancouver film crews to Georgia's production industry, Canadian aerospace staff to Delta and Lockheed Martin Marietta, and Canadian healthcare professionals to Emory and the CDC.

Worked example

A Toronto film production manager moves to Atlanta on June 30 with $200,000 of unrealized gain in a non-registered account, $400,000 in an RRSP, and a Toronto condo sold in the departure year.

• Departure tax. $200,000 gain, $100,000 taxable, at about 53.5%: roughly $53,500.
• Condo. Sold as a resident under the principal residence exemption.
• RRSP. No tax on departure; federal and Georgia deferral.
• Atlanta. Combined top rate about 42%. HST 13% becomes sales tax 8.9%. Property tax on a $600,000 home around $6,000.

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

The Georgia income tax rate has been reduced to a flat rate of 4.99%. — Georgia Department of Revenue, Important Tax Updates, https://dor.georgia.gov/taxes/important-tax-updates

"You will be considered a United States resident for tax purposes if you meet the substantial presence test for the calendar year. To meet this test, you must be physically present in the United States (U.S.) on at least: 31 days during the current year, and 183 days during the 3-year period that includes the current year and the 2 years immediately before that." — Internal Revenue Service, Substantial Presence Test, https://www.irs.gov/individuals/international-taxpayers/substantial-presence-test

Practitioner note

Georgia's retirement income exclusion is one of the largest in the US, and it covers Canadian pension and RRIF income once the client reaches 62. Film industry movers should note that contract income is sourced by where the work is performed; a Toronto production that wraps in June and a Georgia one that starts in August split cleanly.

Corridor guides

• Calgary to Atlanta: Energy to Corporate HQ, and Georgia's Falling Flat Tax
• Montreal to Atlanta: Gaming, Fintech, and Three Authorities on the Way Out
• Ottawa to Atlanta: The Defence Corridor, a Federal Pension, and Georgia's Flat Tax
• Toronto to Atlanta: Tech, Film, and Georgia's Flat Tax With No City Layer
• Vancouver to Atlanta: Film, Tech, and Georgia's Flat Tax

See also: Weighing Florida instead? See the Canada-to-Florida guide. Browse every corridor by city, province, and state.

Next step

Fairlight prepares the Canadian departure return, the first-year federal and state returns, and ongoing cross-border filings. See cross-border pricing or book a call.