Changes to Certain Cross-Border Tax Amounts for 2015
February 4, 2015
As the calendar changes to 2015, both the Internal Revenue Service and Canada Revenue Agency have changed or left unchanged certain amounts and figures. Below are some of the revised amounts, numbers and limits for the year 2015 relevant to U.S. citizens resident in Canada.
Changes to Certain Cross-Border Tax Amounts for 2015
| Item | New Amounts (2015) |
| Top Marginal personal tax rate – US Federal | 39.6%11 |
| Annual Gift Tax Exemption | US$14,00022 |
| Annual Gift Tax Exemption – To a nonresident alien spouse | US$147,000 |
| US Federal Estate Tax Exemption | US$5,430,000 |
| Foreign Earned Income Exclusion | US$100,800 |
| Expatriation – exemption from tax on deemed gains | US$690,00033 |
Canada Revenue Agency
| Item | New amounts (2015) |
| Top Marginal personal tax rate (ordinary income) | |
| – British Columbia | 45.8% |
| – Alberta | 39.0% |
| – Saskatchewan | 44.0% |
| – Ontario | 49.53% |
| Per kilometer tax-free reimbursement | 55 cents/km44 |
| Prescribed interest rate – spousal loans | 1%5 |
1 Unchanged from 2014
2 Unchanged from 2014
3 When a U.S. citizen revokes or relinquishes their citizenship, they may be subject to U.S. federal tax on unrealized gains on certain assets held on the date they lost their citizenship. Where they are subject to this tax, the first US$690,000 of gains is exempt from U.S. federal income tax.
4 First 5,000 km only. 49 cents per km after that.
5 January 1, 2015 to March 31, 2015. Second quarter rate will be announced in March 2015
