Canadians with US Pensions – Episode 11


On episode #11 of Crossing the 49th Podcast we discuss how US pensions are taxed in Canada.

Many of my client receive pension income from the US whether it be traditional government or private US pensions or registered pension payments from 401k or IRA accounts. In this podcast we’ll discuss the taxation of US pensions for Canadian tax residents.

Summary on the taxation of US pensions:

  • US pensions are first taxed in the US pursuant to the treaty
  • US tax paid on the US pension will depend on whether you are a US citizen, Green Card holder or non-resident of the US
  • 15% flat for non-residents of the US
  • Average rates for US tax residents
  • Fully taxable in Canada
  • Foreign tax credit up to 15% in Canada
  • If you pay more than 15% US tax on the pension you’ll need to resourced down to 15% via form 1116
  • How are US social security payments taxed?

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Disclaimer: The information contained in this Podcast and YouTube video is for information purposes only and should not be construed as tax or financial planning advice. Tax and financial planning rules change from year to year and the information contained within may be outdated. Ensure to engage an experienced and competent tax and financial planner to help you with your tax and financial planning needs.


  1. Hello Phil
    Do you offer advice and services for US citizens who own a second home in St Andrews, CA ? we are contemplating selling the property and are interested in the tax implications. Specifically US and Canada capital gains, income tax, and fees associated with the sale.

    please advise if this in in your services offered.

  2. Phil, can you explain how these rules might apply to people with dual citizenship who live in Canada, especially as it might apply to potential double taxation of pensions and Social Security benefits ?


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