What About Taxes?
The question that has been raised by many people is whether paying taxes in Canada is a requirement in order to become a Canadian citizen. The positive side of it is that the citizenship by itself does not impose a tax burden there.
Canada, contrary to the United States, does not tax its citizens globally but rather taxes them according to the place of residence. Therefore, when you become a Canadian citizen but remain living and working in the United States, and you do not own property or run businesses in Canada, you will not usually pay Canadian income taxes or have to file a Canadian tax return.
The thing is, though, that when you make the permanent move to Canada, you will become a Canadian tax resident. The U.S.-Canada tax treaty will come in handy to avoid double taxation in that case by permitting some tax credits between the two countries.
Why the Law Changed
This was changed by Bill C-3, which was a bill that amended the Canadian Citizenship Act and came into effect on December 15, 2025. In the past, Canada also had a regulation referred to as the first-generation limit (FGL). It was introduced in 2009, and only the first generation of children who were born outside Canada could be granted citizenship by descent. In December 2023, the Ontario Superior Court of Justice found that limitation to be unconstitutional.
This led to the revision of the law by the Canadian government. The revision eliminated the previous restriction that applied to people born prior to December 15, 2025. In the case of children born after that date, an exception still exists in which citizenship is possible in case the Canadian parent can demonstrate a significant connection to Canada. Usually, it implies that the parent needs to have resided in Canada at least three years before the birth or adoption of the child. To a lot of Americans of Canadian origin, this legal development would spell out a second citizenship- and perhaps even a Canadian passport- all one has to do is to have the history of their family documented.
