Moving to Toronto

If you are relocating your business to Toronto and will be paying taxes here are the current tax rules. The tax-free threshold in Canada is CAD$14,398 as of 2022. Any more and you will be subject to Canada’s progressive tax rates, which were updated as of 2022. Residents of Toronto must pay both federal and provincial taxes.

Federal Taxes in Toronto

• For the first CAD$50,197, the federal tax rate is 15%
• Up to CAD$100,392 is taxed at 20.5%
• Up to CAD$155,625 is taxed at 26%
• Up to CAD$221,708 is taxed at 29%
• If your income exceeds CAD$221,708, the tax rate is 33%

Ontario Province Taxes

• For the first CAD$46,226, the provincial tax rate is 5.05%
• Up to CAD$92,454 is taxed at 9.15%
• Up to CAD$150,000 is taxed at 11.16%
• Up to CAD$220,000 is taxed at 12.16%
• If your income exceeds CAD$220,000, the tax rate is 13.16%

When selecting a bank while relocating to Toronto, consider monthly fees, atm charges, interact e-transfer (a transfer service used by Canadian banks), CDIC insurance (those moving to Toronto from US can compare this to FDIC), and what you will need to open an account.

• Your mobile phone number
• Your email address
• A valid passport
• Employment and yearly income information
• Proof that you are 18 years old or older
• Your Social Insurance Number (some banks accept US Social Security Numbers)

There are no special rules for newly opened or relocated businesses or expat entrepreneurs.

Check our “Moving to Toronto” recorded webinar and learn more about the tax system in Canada from our experts in Tax and Accounting, Immigration, Relocation & Moving.

When moving to Toronto, Canada, know that you will initially must have 2 forms already filled out. Both forms should indicate the estimated value of the goods as well as descriptions including the make, model, and serial numbers if applicable. Items that arrive separately from you can qualify for tax-free exemption, but only if you list them.

• Form BSF186 – This is a form declaring what goods you have as you are entering the country. This is required even if you have no goods with you when you arrive.
• Form BSF186A – This is a form declaring what goods will arrive separately from your own entry into the country.

Shipping items by air is the more expensive option and is subject to increased cost due to the weight limitations of aircraft. They will arrive faster. Shipping items by sea is the preferred option when moving many items or when moving heavy items. They will arrive slower.

Shipping containers come in different volumes:

• 20 foot shipping containers have 33 cubic meters of space and may cost between CAD$7,500 and $8,500.
• 40 foot shipping containers have 67 cubic meters of space and may cost between CAD$14,000 and CAD$16,000.
• Automobiles can be shipped for an estimated CAD$11,000 to CAD$17,000.

Canada’s immigration law is comparatively strict. Minor past offenses can disqualify you from immigration, so it’s recommended to check your admissibility before moving to Toronto. Some of the most common offenses include:

• Theft
• Assault
• Manslaughter
• Reckless, Dangerous or Drunk Driving offenses
• Drug Influenced Driving
• Drug offenses such as possession or trafficking

Canadian immigration requires a reason to immigrate. Visa types include:

• Student Visas – for those admitted to a Canadian university.
• Work Visas – for those that have a job offer in Canada. These are good for 6 months.
• Permanent Residence Visas – Allow the holder to settle in Canada Permanently but subject to more scrutiny.
• Express Entry Visas – For people with specific skills in trade occupations, in demand by federal or provincial economies, or for student visa holders seeking to transition to permanent residence.

Expats in Toronto typically apply for Permanent Residency visa before relocating to Canada.

Prices for Toronto residences are high by Canadian standards and continue to rise. From 2017 to 2018, prices rose roughly 30%. The Canadian government is combating this rise by raising taxes on foreign investments, but buying and renting property still remains high. However relocating business to Toronto, Canada still is encouraged and with low taxation.

• Rent – As of 2022, 1-bedroom apartments in Toronto average nearly CAD$2,000 per month, 2-bedrooms were CAD$2,600, 3-bedrooms were CAD$3,300, and 4-bedrooms were CAD$4,000.
• Buy – As of 2022, the average price of a property in Toronto was CAD$1,300,000. Detached homes prices averaged nearly CAD$1,700,000, semi-detached were CAD$1,317,000, townhouses were CAD$1,212,542, and condos were CAD$808,566.

Check our “Moving to Expatland: The Journey to Toronto” podcast and learn more professional moving tips for expats relocating to Toronto and the logistics matters business owners have to prepare for and consider before moving their business to Toronto.

The overwhelming majority of people in Toronto speak English as their primary language, with about 8% of residents knowing both English and French. Around 4% of the population knows a different language which usually includes Italian, Cantonese, Chinese, Punjabi, Tagalog, Spanish, and Urdu.

Despite the relative homogeneity of languages, it’s a city of many ethnic backgrounds with expats in Toronto from all of the world, all of whom bring their unique cultures and heritages to the city. Toronto has one of the highest counts of film festivals in the world. It holds several major history and art museums, the most active English Language Theater scene, and richly diverse gastronomic offerings.

Toronto boasts a large number of health and wellness centers, serene nature walks, a commitment to mental health and stress reduction, and universal healthcare. The city offers a directory of over 100 health and wellness clinics and centers, including their specialties.

Toronto is dotted with numerous parks and a unique ravine system that forms an urban forest throughout most of the city. The city encourages transportation via bicycles, and bike lanes are present city-wide. Bike sharing options are common, and new trails/lanes are built frequently.

Residents with residence permits or work permits are eligible for Canada’s healthcare system, but private health insurance groups also exist for those who are not eligible.