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

ItemNew Amounts (2015)
Top Marginal personal tax rate – US Federal39.6%11
Annual Gift Tax ExemptionUS$14,00022
Annual Gift Tax Exemption
– To a nonresident alien spouse
US Federal Estate Tax ExemptionUS$5,430,000
Foreign Earned Income ExclusionUS$100,800
Expatriation – exemption from tax on deemed gainsUS$690,00033

Canada Revenue Agency

ItemNew amounts (2015)
Top Marginal personal tax rate (ordinary income)
– British Columbia45.8%
– Alberta39.0%
– Saskatchewan44.0%
– Ontario49.53%
Per kilometer tax-free reimbursement55 cents/km44
Prescribed interest rate – spousal loans1%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