Canadians Working in the US: A Guide (Visas, Taxes & Tips)

Of course. It's one of the most common questions we hear: can Canadians work in the US? The short answer is yes, absolutely—but you can't just pack up and cross the border for a new job. You need to get the right legal authorization first.

The most well-trodden paths are the TN visa for professionals under the USMCA agreement, the L-1 visa for employees transferring within their company, and the H-1B visa for specialized roles. Each one has its own set of rules, application quirks, and limits, so it's crucial to know which one fits your situation before you start planning.

Your Essential First Steps for Working in the US#

The dream of working stateside is becoming a reality for more Canadians than ever. In 2022 alone, the number of Canadian-born residents in the United States shot up by over 42,000, bringing the total to 821,322. That’s the biggest single-year jump in over a decade, proving this isn't just a fleeting idea for many. You can dig into the numbers yourself in this detailed analysis of recent migration trends.

But turning this idea into a successful move takes more than just enthusiasm; it demands a solid plan. I always tell clients to think of their transition as being built on three core pillars:

• Legal Work Authorization: This is the absolute must-have. Without the right visa, you can't legally earn a dime in the United States. It's your ticket to entry.
• US Tax Residency: Getting a handle on your tax status is critical. The IRS will classify you as either a "resident alien" or "non-resident alien," and that distinction dictates exactly how your income is taxed.
• Cross-Border Financial Setup: This is the practical stuff—opening a US bank account, getting your Social Security Number (SSN), and starting to build a US credit history. Don't overlook these steps.

A Quick Guide to US Work Visas for Canadians#

Navigating the alphabet soup of US visas can feel overwhelming. To clear things up, here’s a breakdown of the three most common options for Canadians. Think of this table as a cheat sheet to quickly see which visa aligns with your job and career path.

Quick Guide to US Work Visas for Canadians#

Each path is designed for a different type of professional journey. The TN is fantastic for its straightforward process for listed professions, the L-1 is perfect for internal company moves, and the H-1B opens doors for roles that require highly specialized skills, though it comes with the uncertainty of a lottery system.

Alright, you've landed a job offer in the U.S. — congratulations! Now comes the most critical step: getting the legal green light to actually work there. Think of a U.S. work visa as the official key that unlocks your professional life south of the border. Without it, you can't be legally employed or, just as importantly, get paid.

The right key for you depends entirely on your profession, your employer, and the job itself. For Canadians, there are three well-trodden paths: the TN, L-1, and H-1B visas. Let's break down what they are and who they're for, so you can figure out exactly which one fits your situation.

The TN Visa: Your Professional Pass#

For qualified Canadian professionals, the TN visa is often the quickest and most straightforward route. Born from the United States-Mexico-Canada Agreement (USMCA), it’s like a special access pass for people in a specific list of over 60 professions—think engineers, accountants, scientists, and management consultants.

To get your hands on this pass, you must be a Canadian citizen with a pre-arranged job offer (full-time or part-time) from a U.S. employer. The real kicker is that both your new role and your educational background have to line up perfectly with one of the professions on that official USMCA list.

Here’s a snapshot of the official USCIS page outlining the general requirements for TN nonimmigrants.

As the page shows, being a citizen of Canada or Mexico and working in a designated profession are the core requirements. The biggest perk for Canadians? You can apply for it directly at a U.S. Port of Entry, which cuts out a ton of administrative hassle.

The L-1 Visa: For Internal Company Moves#

What if you aren't starting fresh with a new company but are just moving to a U.S. office of your current employer? That’s exactly what the L-1 visa is for. It’s a corporate mobility visa, built for employees transferring from a Canadian office to a U.S. parent, subsidiary, or affiliate of the same company.

The L-1 visa splits into two distinct categories:

• L-1A for Managers and Executives: This is for people who will be running departments, managing other professionals, or directing a major part of the U.S. business.
• L-1B for Specialized Knowledge Workers: This route is for employees with deep, unique knowledge of the company’s products, services, research, or internal processes—the kind of expertise you can’t just find anywhere.

To qualify, you must have worked for the Canadian branch of your company for at least one continuous year within the last three years. Unlike the TN visa, the L-1 requires your employer to file a petition for you with U.S. Citizenship and Immigration Services (USCIS) ahead of time.

The H-1B Visa: For Specialty Occupations#

The H-1B visa is the go-to for professionals in "specialty occupations," which are basically jobs that require a bachelor's degree or equivalent as a bare minimum. It's a popular path for folks in tech, finance, and engineering, where specialized skills are always in high demand.

But the H-1B comes with a huge catch: it's a lottery. The U.S. government caps the number of new H-1B visas each year, and the number of applicants always blows past the available spots. This means that even if you and your employer tick every single box, getting the visa comes down to the luck of the draw.

This reliance on temporary work authorizations has completely reshaped how professionals move between our two countries. After NAFTA's implementation in 1994, a massive wave of Canadian professionals headed to the U.S. on temporary visas like the TN and H-1B. In fact, some studies suggest over 90% of high-skilled Canadian emigration during that period was temporary, not permanent. You can dive deeper into this trend and its effect on Canadian labor mobility.

This really highlights how vital these temporary work visas are for Canadians working in the US. They offer the flexibility and opportunity many professionals are looking for without the full commitment of permanent residency. Since the H-1B process is so complex and lottery-based, it's absolutely crucial that your employer partners with an experienced immigration attorney to get the petition filed correctly.

Navigating Your US Tax Obligations#

Once you've got your visa sorted, the next big puzzle for any Canadian working in the US is the tax system. It plays by a completely different set of rules, and getting a handle on your status from day one is the best way to avoid nasty surprises and penalties later on.

Your entire US tax situation boils down to one simple question: are you a "resident alien" or a "non-resident alien" for tax purposes? This has nothing to do with your immigration status—it's a specific label the Internal Revenue Service (IRS) uses to figure out how to tax you.

The Substantial Presence Test#

So, how do you know which category you fall into? The IRS uses a formula called the Substantial Presence Test. Think of it as a counter that adds up the number of days you're physically in the United States over a three-year window.

You'll meet this test if you are in the US for at least:

• 31 days during the current year, AND
• 183 days during the 3-year period that includes the current year and the two years just before it.

Now, that 183-day total isn't a straight count. It's weighted. You count all your days in the current year, one-third of your days from the year before, and one-sixth from the year before that. If the final number hits 183 or more, the IRS generally considers you a US resident for tax purposes.

Key Takeaway: If you're a US resident alien for tax purposes, you're taxed on your worldwide income, just like a US citizen. If you're a non-resident alien, you're generally only taxed on your US-source income.

Federal vs State Taxes#

Here's another big difference that often trips up Canadians: federal versus state taxes. Back home, our system is pretty integrated. In the US, you’ll file a federal return with the IRS and, in most states, a separate state tax return where you live and work.

• Federal Taxes: These go to the national government and apply to everyone earning income in the US.
• State Taxes: These are owed to the state, and the rules and rates are all over the map. Some states like Florida and Texas have no state income tax at all. Others, like California and New York, have some of the highest rates in the country.

Your tax liability is directly tied to your residency status, which can make a huge difference in your take-home pay.

Key US Tax Differences for Canadian Workers#

To help clarify, here’s a quick comparison of what you can expect based on your tax residency status.

This table makes it clear why understanding your status under the Substantial Presence Test is the first and most important step.

Avoiding Double Taxation#

The biggest fear for most Canadians is the nightmare of being taxed twice on the same income—once by Canada and once by the US. Thankfully, the Canada-U.S. Tax Treaty exists specifically to prevent this. This agreement contains rules that let you claim foreign tax credits.

In simple terms, you can use the taxes you pay to one country to offset what you owe to the other. It ensures you’re not getting hit from both sides. To see exactly how this works, you can dig into the specifics of the **Canada-US tax treaty**Canada-US tax treaty](https://www.taxsym.com/blog/tax-treaty-canada-usa) and see how it protects cross-border workers like you.

A Practical Example#

Let's walk through a quick case study to see how all these pieces fit together.

Name: Sophie, a Canadian software developer.
Visa: TN visa.
Location: Working for a tech company in San Francisco, California.

1. Tax Residency: Sophie will be in the US for well over 183 days in her first year alone. She easily passes the Substantial Presence Test and is officially a US resident alien for tax purposes.
2. Tax Forms: When she starts her job, she'll fill out a Form W-4. This tells her employer how much federal income tax to withhold from each paycheck.
3. Filing Obligations: When tax season rolls around, Sophie will have to file two separate tax returns:
4. Double Taxation: Sophie will also file a Canadian tax return. But here's the key: she can claim a foreign tax credit for the US federal and state taxes she already paid. This will dramatically reduce or even completely wipe out her Canadian tax bill on her US earnings.

Getting Your SSN or ITIN for Payroll and Banking#

Once you've sorted out your visa, the next big hurdle is getting a U.S. taxpayer identification number. This isn't just another piece of paperwork—it's the key that unlocks your entire financial life in the States. Without one, you can't get paid, open a bank account, or even start building a U.S. credit history.

For Canadians working in the US, this comes down to one of two numbers: a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN).

Think of the SSN as the master key. It’s for anyone authorized to work, and it opens every door from payroll to retirement benefits. The ITIN, on the other hand, is a more specialized key, used only for tax reporting by people who aren't eligible for an SSN, like a non-working spouse.

The All-Important Social Security Number#

If you're coming in on a work-authorized visa like a TN, L-1, or H-1B, getting your SSN needs to be your top priority the moment you arrive. This nine-digit number is your main identifier in the U.S. system, and you'll need it for just about everything.

Your employer needs it for payroll, banks ask for it to open an account, and it's the bedrock of your U.S. credit score.

Getting one is pretty straightforward:

1. Wait 10 Days: It's best to give it about ten business days after you arrive. This gives all the government systems time to catch up with your entry information.
2. Visit a Social Security Office: You’ll need to apply in person at a local Social Security Administration (SSA) office. Appointments usually aren't necessary.
3. Bring Your Docs: Make sure you have your passport, your work-authorized visa (printed I-94 record), and a completed Form SS-5 (Application for a Social Security Card).

You can expect your card to show up in the mail within a couple of weeks.

When an ITIN Is Necessary for Your Family#

So, what about your spouse or kids who came with you but aren't authorized to work? They can't get an SSN, but they'll likely need an Individual Taxpayer Identification Number (ITIN).

An ITIN is a tax processing number issued by the IRS. It's absolutely essential if you want to claim your non-working spouse or children as dependents on your U.S. tax return, which can save you a significant amount of money. An ITIN lets them comply with U.S. tax laws without needing work authorization.

Applying for an ITIN involves sending Form W-7 to the IRS along with proof of their identity and foreign status. Unlike the in-person SSN process, this is almost always done when you file your U.S. tax return for the first time.

If you want to get into the weeds of the application, our guide breaks down exactly **what an ITIN number is**what an ITIN number is](https://www.taxsym.com/blog/what-is-an-itin-number) and how the process works.

Expert Tip: Don't put off applying for your SSN. Your employer legally can't keep you on the payroll forever without one. Tackling this within your first two weeks will make for a much smoother start to your job and financial life in the U.S.

Getting the difference between an SSN and an ITIN is fundamental. The SSN is for you, the worker. The ITIN is for your non-working family members, ensuring your entire household is set up correctly for tax season.

Sorting Out Retirement and Healthcare Across the Border#

If you’re working in the U.S., you'll see deductions for Social Security and Medicare on your pay stub. It's a common point of confusion—and worry—for many Canadians. Does paying into the American system mean you’re losing out on the Canadian Pension Plan (CPP) or Old Age Security (OAS) benefits you’ve been building back home?

The short answer is no, you don't have to worry about your hard-earned retirement credits vanishing. A key agreement between Canada and the U.S. has your back.

The Canada-U.S. Totalization Agreement#

Think of the Canada-U.S. Totalization Agreement as a bridge connecting your work histories from both countries. It's a powerful pact designed to make sure the time you spend working on either side of the border counts toward a single, secure retirement.

Here’s how it works: the agreement lets you combine your work periods from both the U.S. and Canada to meet the minimum eligibility rules for benefits. For example, say you worked in the U.S. for a few years but not long enough to qualify for Social Security benefits on its own. Your CPP credits can be used to push you over that threshold.

This clever bit of coordination prevents that frustrating scenario where you fall just short of qualifying for benefits in two different countries. It merges your cross-border career into one cohesive retirement plan.

Avoid Double Payments with a Certificate of Coverage#

What if your U.S. job is just a temporary gig—maybe a two-year project? In that case, you might be able to sidestep paying into the U.S. Social Security system completely.

You or your employer can request a Certificate of Coverage from the Canadian government. This official document proves you're still contributing to your CPP while on assignment in the States. Hand that certificate over to your U.S. employer, and you'll be exempt from U.S. Social Security taxes for up to five years.

This is a huge money-saver for Canadians on temporary assignments. It stops the financial drain of paying into two different social security systems for the exact same work.

The pull for cross-border work isn't new. Back in the 1980s, even when unemployment was higher in Canada, professionals were still actively seeking roles in the U.S. You can learn more about this long-standing historical trend in labor mobility.

The Deal with U.S. Medicare Contributions#

Alongside Social Security, your U.S. paycheck will also have deductions for Medicare tax. This is mandatory for almost everyone working in the United States, no matter their citizenship or visa status.

But here’s the catch: paying into the system doesn't mean you automatically get the benefits. Qualifying for Medicare is a whole different ballgame. It usually requires a long work history in the U.S. (typically 10 years) and meeting specific age or disability rules.

For most Canadians working stateside temporarily, Medicare is simply a tax they have to pay without a realistic expectation of getting future healthcare coverage from it.

Your Transition Checklist From Canada to the US#

Moving to the US for work feels like juggling a dozen things at once. To help you keep everything straight and avoid any costly mistakes, we've put together a step-by-step game plan.

Think of this as your personal roadmap for a smooth transition from Canada to the US. Bookmark this page and check things off as you go—following these steps in order will help you build a solid legal and financial foundation from day one.

Phase 1: Before You Move#

This is all about getting your ducks in a row. Nailing the prep work and paperwork now is absolutely crucial, as it sets the stage for your entire stay in the US. Don't rush it. A little extra care here will save you massive headaches down the road.

• Secure a Written Job Offer: Get a detailed offer letter from your US employer. This document is the bedrock of your entire visa application.
• Prepare Your Visa Application Package: Team up with your employer or an immigration attorney to assemble all the required documents for your visa (TN, L-1, H-1B). This usually includes your offer letter, diplomas, transcripts, and proof of professional experience.
• Gather Personal Documents: Collect your essential records like your passport, birth certificate, and marriage certificate if you're married. Make both physical and digital copies of everything—you can never have too many backups.
• Notify Canadian Authorities: Give Service Canada and your provincial health authority a heads-up about your departure date. This helps prevent any snags with benefits or your tax residency status.

Phase 2: Upon Arrival in the US#

Once you've crossed the border, the first couple of weeks are all about getting plugged into the US system. Your main goal here is to establish your official identity so you can get paid and start your new life.

1. Get Your I-94 Record: The moment you're in, head to the official CBP website to download your electronic I-94 arrival record. This is your official proof of legal entry.
2. Apply for Your Social Security Number (SSN): Give the government systems about 10 business days to sync up, then visit a Social Security Administration office to apply for your SSN.
3. Open a US Bank Account: With a US address and your new SSN, you can open a checking and savings account. This is non-negotiable for getting your pay cheques and handling day-to-day finances.
4. Complete Employee Paperwork: Sit down with your employer to fill out your Form W-4 (Employee's Withholding Certificate) and Form I-9 (Employment Eligibility Verification).

Pro Tip: Your Canadian credit history, unfortunately, doesn't cross the border with you. When you're opening that bank account, ask the banker about secured credit cards or any other products they have for newcomers. Starting to build a US credit profile immediately is a smart move.

Phase 3: Ongoing Responsibilities#

The transition doesn't stop after the first month. For all Canadians working in the US, staying on top of your cross-border obligations is essential for long-term financial health and staying compliant.

• Track Your Days in the US: Keep a detailed, running log of every single day you spend stateside. This is critical for figuring out your tax residency status with the Substantial Presence Test.
• File Annual Tax Returns: Get ready to file both US federal (Form 1040 or 1040-NR) and state tax returns, on top of your final Canadian tax return.
• Manage Cross-Border Accounts: Be aware of the reporting rules for any Canadian financial accounts you decide to keep open, like your RRSPs or TFSAs. The IRS wants to know about them.

Your Top Questions Answered#

Working in the U.S. is a huge step, and it’s natural to have a ton of questions about the little details. Let's tackle some of the most common ones that come up for Canadians making the move.

Can I Just Work Remotely for a US Company from Canada?#

Technically, yes, but this arrangement is a lot more complicated than it sounds. From an immigration perspective, you're in the clear—if you stay physically in Canada, you don't need a U.S. work visa.

The real headache is on the tax side, both for you and your employer. Your U.S. company would likely need to register for Canadian payroll accounts. That means they'd be on the hook for withholding Canadian income tax, CPP, and EI, creating a major administrative burden for them. This is a huge point to bring up with your employer right from the start.

What Happens to My RRSP and TFSA When I Move?#

Your Canadian investment accounts need some careful planning once you become a U.S. tax resident. They don't just transfer over seamlessly.

• RRSP: The good news is that the Canada-U.S. Tax Treaty lets you defer U.S. tax on the growth inside your RRSP, much like a 401(k). But you can't just forget about it—you have to report it every year on specific U.S. forms, like the FinCEN Form 114 (FBAR) and Form 8938.
• TFSA: This is where it gets tricky. The U.S. does not recognize the tax-free status of a TFSA. Any income, dividends, or capital gains earned inside your TFSA are fully taxable by the IRS and must be reported annually.

Because of these complicated reporting rules, many Canadians cash out their TFSAs before moving south. If you don't, it's a good idea to chat with a cross-border tax pro to avoid any nasty surprises or penalties from the IRS.

How Do I Build Credit in the US? My Canadian History Doesn't Transfer!#

It’s true—your stellar Canadian credit score hits a big reset button the moment you cross the border. You’re essentially starting from scratch. Here are a few solid strategies to build your U.S. credit file:

• Get a Secured Credit Card: This is the classic first step. You provide a cash deposit that becomes your credit limit, which makes it very easy to get approved. Use it responsibly for a few months, and you can usually upgrade to a regular, unsecured card.
• Try a Credit-Builder Loan: Some banks offer small loans where the money is held in a savings account while you make payments. Each payment gets reported to the credit bureaus, building up a positive history.
• Report Your Rent Payments: You can use services that report your on-time monthly rent payments to the big credit bureaus (Experian, TransUnion, Equifax). It’s an easy way to add a consistent positive mark to your file.

Can My Spouse and Kids Come With Me?#

Absolutely. Your legal spouse and unmarried children under 21 can usually join you in the U.S. They'll need to apply for a dependent visa tied to your specific work visa. For instance, if you have a TN visa, your family would apply for TD (Trade Dependent) status.

The key thing to remember is that most dependent visas, including the TD, do not come with work authorization. Your spouse can live in the U.S. and go to school, but they can't legally earn an income unless they qualify for and get their own separate work visa.

Bringing your family to the U.S. is a huge part of the journey, but getting them an ITIN for tax filing can be a real hassle. Taxsym cuts through the red tape. As an IRS-Approved Certified Acceptance Agent, we help you get an ITIN for your spouse or dependents 100% online—no need to mail their original passports. Get your family set up for financial success in the U.S. and start your ITIN application