If you are a Canadian nurse working in the U.S. on a TN visa, taxes are not as complicated as they first seem, but they do require attention. Most TN nurses have tax obligations in both countries, at least initially.
Here is how it actually works in plain English.
Step One: You Always File a U.S. Tax Return
If you earn money in the U.S., you must file a U.S. tax return. There is no exception to this.
Most TN nurses start out as non residents for U.S. tax purposes, which means you file Form 1040 NR.
If you spend enough time in the U.S. and meet the Substantial Presence Test, you may be treated as a U.S. resident for tax purposes and will then file a regular Form 1040 instead.
Either way:
- You pay U.S. federal income tax on your U.S. wages
- You may pay state income tax depending on where you work
- Your employer usually withholds these taxes from your paycheck
This part is straightforward and unavoidable.
Step Two: Canada Depends on Your Ties, Not Your Visa
This is where people get confused.
Canada does not decide your tax status based on your visa. It looks at your life ties.
If You Keep Strong Ties to Canada
If you keep things like:
- A home in Canada
- A spouse or children in Canada
- Canadian bank accounts
- Provincial health coverage
- A Canadian drivers license
Canada usually considers you a tax resident, even if you are working in the U.S.
In that case:
- You must file a Canadian tax return
- You report all income worldwide, including U.S. income
- You claim a foreign tax credit for U.S. taxes paid
- You are not double taxed when done correctly
This is the most common situation for TN nurses, especially in the first few years.
If You Cut Most Ties to Canada
If you move long term, give up provincial health coverage, no longer maintain a home and shift your life to the U.S., Canada may consider you a non resident for tax purposes.
In that case:
- You do not file a regular Canadian tax return
- You only report certain Canadian source income, like rent or investments
This is less common and should never be assumed without professional guidance.
What Your U.S. Paycheck Really Looks Like
U.S. job offers are always quoted in gross pay, not take home pay.
From your paycheck, the following are usually withheld:
- Federal income tax
• State income tax if applicable
• Social Security tax, usually 6.2 percent
• Medicare tax, usually 1.45 percent
Most TN nurses do pay Social Security and Medicare. There is a U.S. Canada totalization agreement that can change this in specific situations, but it requires proper setup. It does not apply automatically.
Simple Example Using Real Numbers
If you earn $55 USD per hour and work 36 hours per week:
- Gross monthly pay is about $8,580 USD
After taxes and required deductions, a realistic estimate of take home pay might be:
- Around $6,400 USD per month
At an exchange rate of approximately 1.35, that equals roughly:
- $8,600 CAD per month
This is an estimate. Your actual numbers depend on your state, benefits and tax filings.
Banking and Currency Basics
Most Canadian nurses keep accounts in both countries.
Things to keep in mind:
- Exchange rates affect how much CAD you receive
• Cross border accounts from banks like RBC and TD can simplify transfers
• Keeping Canadian accounts may trigger reporting requirements depending on your tax status
What I Would Tell Any Nurse Directly
Do not guess. Do not rely on what a coworker tells you. Do not assume last year applies to this year.
Cross border taxes are very manageable when set up correctly and very expensive when ignored.
Ready to Work in the U.S. as a Canadian Nurse?
If you’re a Canadian RN considering a move to the U.S. on a TN visa, All Med Search can help you every step of the way. We specialize in placing Canadian nurses in permanent U.S. hospital roles and guiding you through the process—from job matching and interviews to visa coordination and relocation support.
Contact All Med Search today to explore U.S. nursing opportunities that align with your goals, lifestyle, and long-term career plans.
Important Disclaimer
This article is for general informational purposes only. It is not legal, tax or accounting advice.
Tax laws change and individual situations vary. TN visa nurses should consult a qualified cross border tax professional to determine their specific filing requirements and obligations.