Sat. Dec 7th, 2024

Record Number of Canadians Emigrate to the U.S., Driven by Job Opportunities and Lower Taxes

A record number of Canadians are moving to the United States, reaching levels not seen in over a decade. The American Community Survey (ACS), conducted by the U.S. Census Bureau, revealed that 126,340 Canadians emigrated to the U.S. in 2022. This marks a nearly 70 percent increase from the 75,752 Canadians who made the move in 2012.

While Canadians have long relocated south for various reasons such as love, work, or warmer weather, the latest figures indicate a significant rise above historical averages. Of the 126,340 people who left Canada in 2022, 53,311 were born in Canada, 42,595 were American-born individuals returning home, and 30,434 were foreign-born immigrants to Canada who opted for the U.S. instead.

The Canadian-born emigrant figure is particularly notable, up roughly 50 percent compared to pre-COVID numbers. The United States remains the top destination for Canadian emigrants, with about 800,000 Canadians residing in the U.S. as of 2020, vastly outnumbering the 100,000 living in the U.K., according to UN data shared by Statistics Canada.

To facilitate the move, numerous Facebook groups have emerged, offering guidance on securing visas or green cards, choosing places to live, and navigating health insurance. One such group, “Canadians Moving to Florida & USA,” boasts over 55,000 members and is rapidly growing.

Real estate agents and immigration lawyers attribute the surge partly to the appeal of a more affordable lifestyle in the U.S. Higher wages in fields like information technology and health care, along with lower tax burdens in many states, attract many Canadians. For instance, Florida has no state income tax, while Arizona offers a flat state tax rate of 2.5 percent.

Additionally, daily essentials like alcohol and tobacco can be more affordable in the U.S. due to lower “sin” taxes. However, some cost savings may be offset by recent increases in home insurance rates and property taxes in certain U.S. areas. Another major consideration for Canadians moving south is healthcare costs.

In the U.S., about 54.5 percent of the population has health insurance through their employer. Another 18.8 percent rely on income-tested Medicaid, and 18.7 percent depend on age-related Medicare. Around 10 percent of Americans purchase insurance directly from providers, with premiums being quite high. For example, a 55-year-old single man in Naples, Florida, without employer-based insurance can expect to pay about $10,000 annually for health insurance.

Despite the challenges, the trend of Canadians moving to the U.S. continues to grow, driven by the promise of higher wages, lower taxes, and new opportunities.

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