Can US Citizens Work in Canada?
Written by Tiffany Woodfield, TEP, Associate Portfolio Manager, CRPC®, CIM® and John Woodfield Portfolio Manager, CFP®, CIM®
Can US Citizens Legally Work in Canada?
Q: Can US citizens work in Canada?
A: In short, yes. US citizens can legally work in Canada, but it’s not automatic. There are key legal requirements that any American who wants to work in Canada must follow.
To work in Canada, you need a work permit or another type of legal authorization. Although the US and Canada share strong ties, crossing the border to work still requires completing paperwork and following legal procedures.
Most people will need either a temporary work permit or permanent residence status that allows them to work. Each option has different rules and timelines. It's smart to understand which fits your situation best before making any move. If you have substantial investable assets, tax planning and cross-border investment management are also essential from day one.
Table of Contents
- Can US Citizens Legally Work in Canada?
- Work with Professionals
- What to Know About Settling in Canada as an American
- Top Work Permit Options for US Citizens in Canada
- How NAFTA/USMCA Makes It Easier for Americans to Work in Canada
- What Is an Employer-Specific Work Permit?
- Do US Citizens Need a Job Offer to Work in Canada?
- How to Apply for a Canadian Work Permit: Step-by-Step
- The Temporary Foreign Worker Program: A Path for Americans
- How Canadian Employers Can Sponsor US Citizens
- What Is the Express Entry System – And Can Americans Use It?
- Understanding the Points System for Skilled Workers
- Can Students Work in Canada During or After Their Studies?
- Temporary vs. Permanent Residence: What’s Right for US Workers?
- Can US Citizens Get Canadian Permanent Residence Through Work?
- Avoiding Cross-Border Tax and Investment Traps When Working in Canada
- Managing Your Investments as a Cross-Border
- Common Questions
Work with Professionals
While this post is not a substitute for working with a cross-border or immigration lawyer, it will provide the info you need to get started with your cross-border move.
Now, don't forget that in addition to getting your professional life in order, it's critical to do tax planning and cross-border financial planning. As cross-border financial advisors, we speak with Americans living in Canada on a daily basis. From years of working with Americans, Canadians, and dual citizens, we know that planning is the key to a smooth transition across the border.
If you have substantial investments, we recommend seeking the advice of a cross-border financial advisor before you move, as it will ensure you don't fall into any major tax traps or make any costly mistakes.
What to Know About Settling in Canada as an American
Moving to Canada to work means more than just starting a new job.
You'll also be starting a new life. You'll need to find housing, open a local bank account, and get familiar with Canada's healthcare system. For wealthy Americans, things like where your investments are held, how they're taxed, and which assets to move or leave in the US all matter.
Canada may feel familiar, but the rules are different, especially when it comes to taxes and retirement planning. A cross-border financial advisor can help you settle in without missing key steps that could create problems later.
Top Work Permit Options for US Citizens in Canada
US citizens have a few different work permit options to choose from.
The most common include employer-specific permits, which tie you to one company, and open work permits, which let you work for most employers in Canada. Some Americans also qualify under the United States–Mexico–Canada Agreement (USMCA). If you qualify under the USMCA, you'll find the process to be much simpler.
How NAFTA/USMCA Makes It Easier for Americans to Work in Canada
The USMCA, or United States–Mexico–Canada Agreement, is a trade agreement that replaced NAFTA in 2020. It covers trade, labour, and investment between the US, Canada, and Mexico. For professionals and business persons, certain American and Mexican citizens are allowed to work in Canada without going through the full Labour Market Impact Assessment (LMIA) process.
This means if you're a US citizen in a qualifying profession — like engineering, accounting, or scientific research — you can apply for a USMCA professional work permit more easily than someone without that agreement in place.
If you're already living in Canada on another visa, you might be eligible for a Bridging Open Work Permit while you apply for permanent residency. Picking the right permit upfront helps you avoid delays, extra costs, and employment issues later.
However, only certain professions qualify, and you still need to have a job in advance as well as the appropriate licensing or education.
To see if you can work in Canada under the USMCA, go to this page on the Canadian government website. Then put in your country. Next, review the requirements. You'll find a list of professions cited as skilled professionals that could qualify under the USMCA. Or you can review the latest information on this page about Canada's International Mobility Program.
Be sure to work with an immigration lawyer as the rules have been changing, and you'll need the most up-to-date information as you move forward.
Note: The first joint review of the USMCA is scheduled for July 1, 2026. If the three countries do not agree to extend USMCA in the 2026 review, the agreement will terminate in 2036.
What Is an Employer-Specific Work Permit?
An employer-specific work permit lets you work for one company only.
This type of permit lists the name of your employer, the job location, and how long you can stay. You can't switch employers or change jobs without applying for a new permit.
This is the most common type of work permit for Americans moving to Canada for a job. It's often used under the Temporary Foreign Worker Program (TFWP) or the USMCA. If your employer changes or you want to explore other roles, you’ll need to reapply. It's important to understand these limits upfront so you don’t accidentally break the rules and risk losing your work status.
Do US Citizens Need a Job Offer to Work in Canada?
In most cases, US citizens need a job offer before they can get a Canadian work permit.
There are some exceptions, but most work permits are tied to a specific employer. This means you need a written job offer before submitting your application.
If you’re applying under the USMCA for a professional role, the offer must be in a qualifying occupation as defined by the USMCA. There are over 30 qualifying occupations, so be sure to check the Canadian government website for the most up-to-date information.
If you're going through the Temporary Foreign Worker Program, the employer also needs to get a Labour Market Impact Assessment. Open work permits don’t require a job offer, but those are only available in special cases, like spousal sponsorships or some post-graduate permits.
How to Apply for a Canadian Work Permit: Step-by-Step
Applying for a Canadian work permit involves several steps, and timing matters.
First, get a job offer if your permit type requires one.
Next, check whether the employer needs an LMIA. If not, or once that's complete, gather your documents, including proof of identity, the offer letter, and supporting materials like your resume or diplomas.
Then, submit your application online through the Immigration, Refugees and Citizenship Canada (IRCC) website. You’ll likely need to give biometrics and may be asked for a medical exam, depending on the job and location.
Once approved, you’ll receive your work permit upon entering Canada or by mail if you’re already in the country.
The Temporary Foreign Worker Program: A Path for Americans
The Temporary Foreign Worker Program (TFWP) allows US citizens to work in Canada if a Canadian employer can’t find a local worker.
To use this program, the employer must first apply for an LMIA. This document proves that hiring a foreign worker won’t harm job opportunities for Canadians. Once the LMIA is approved, you can apply for your work permit using the job offer and LMIA details.
The TFWP is often used for roles in agriculture, caregiving, and skilled trades. While the process takes time, it can be a good path if your skills are in demand and your employer is willing to support the paperwork.
How Canadian Employers Can Sponsor US Citizens
Canadian employers can sponsor US citizens by securing an approved LMIA or using a work permit stream that doesn’t require one.
If the job falls under the TFWP, the employer must first advertise the position in Canada and then apply for an LMIA. Once that’s approved, they can extend a formal offer and provide you with the documents needed for your work permit application. In some cases, like under the USMCA, no LMIA is needed. Instead, the employer provides a detailed offer letter and proof that the job fits a qualifying profession. Sponsorship is a key step in helping Americans work legally in Canada, and it’s something many larger employers are already familiar with.
What Is the Express Entry System – And Can Americans Use It?
Yes, Americans can use the Express Entry system if they want to move to Canada as skilled workers.
Express Entry is a fast-track immigration system for people who want to become permanent residents. It's based on your skills, work experience, education, and language ability.
If you qualify under one of the three main programs, you can create a profile.
The three main programs are as follows: Federal Skilled Worker, Federal Skilled Trades, or Canadian Experience Class.
If your score is high enough, you'll be invited to apply for permanent residence. While Express Entry isn’t a direct work permit, it's a great option for Americans who want to live and work in Canada long term.
Understanding the Points System for Skilled Workers
Express Entry uses a points-based system to rank applicants based on factors like age, education, and job experience.
This system is called the Comprehensive Ranking System (CRS). You receive points for factors such as your language test scores, job history, education level, and whether you have a job offer or a spouse.
Having a Canadian job offer or a provincial nomination can significantly boost your score. If you’re an American professional with a strong background, this could be a very realistic path to working and living in Canada permanently.
Can Students Work in Canada During or After Their Studies?
Yes, US students in Canada can work during school and may be able to stay and work after graduation.
If you have a valid study permit, you're allowed to work part-time—up to 20 hours a week—during the school year, and full-time during breaks. After finishing your program, you may qualify for a Post-Graduation Work Permit (PGWP), which lets you work in Canada for up to three years.
It’s important to apply for the PGWP right after graduating, as the window to apply is short.
Temporary vs. Permanent Residence: What’s Right for US Workers?
Choosing between temporary and permanent residence depends on your long-term goals.
Temporary residence lets you live and work in Canada for a set period, usually tied to a specific job or permit. It’s ideal if you're testing the waters or planning a short-term stay. Permanent residence, on the other hand, gives you more freedom.
You can work for any employer, live anywhere in Canada, and eventually apply for citizenship. If you're a high-net-worth individual planning to retire or build a long-term life in Canada, permanent residence offers more flexibility.
Many Americans start with a work permit and later apply for permanent residence once they're settled.
Can US Citizens Get Canadian Permanent Residence Through Work?
Yes, US citizens can apply for permanent residence in Canada after gaining Canadian work experience.
Programs like the Canadian Experience Class within Express Entry are designed for people who’ve worked in Canada for at least one year in a skilled role. Having Canadian work experience gives you a points boost in the system and shows you can adapt to life and work in Canada.
You’ll still need to meet other requirements, including language proficiency and health checks. If you're already in Canada on a valid work permit, applying for permanent residence is a natural next step—and one that many Americans successfully take every year.
Avoiding Cross-Border Tax and Investment Traps When Working in Canada
Cross-border taxes and investing can get messy fast if you don't plan ahead.
The US taxes its citizens on worldwide income, even if you live and work in Canada. That means your salary in Canada, Canadian retirement accounts, and investment income could all trigger US tax obligations.
Canada also has its own tax rules, which may not match US regulations.
In addition, as an American in Canada, there are certain financial tools that you need to avoid, such as PFICs and Canadian mutual funds.
Without a cross-border tax strategy, you could end up double-taxed or face unexpected reporting penalties. High-net-worth Americans should work with a cross-border advisor and accountant who understands both systems.
Proper planning protects your wealth and helps you avoid tax traps that are expensive to fix later. Make sure that your advisor is dual-licensed in Canada and the United States and understands the complexities on both sides of the border.
Managing Your Investments as a Cross-Border
Your investment accounts may need to change once you start working in Canada.
Many US-based investment firms will freeze or close accounts if you move to Canada. Canadian firms might not be allowed to manage US assets unless they’re cross-border licensed (which most advisors are not).
You also need to consider how different accounts are taxed in each country. For example, Canadian TFSAs aren't recognized by the IRS and can cause tax problems.
A cross-border advisor can help you restructure your portfolio so it’s legal, efficient, and aligned with your long-term goals in both countries. For clients with $2 million or more in investable assets, this step is not optional—it’s essential.
Common Questions
What do US citizens need to do to work in Canada legally?
US citizens must apply for a valid Canadian work permit, usually with a job offer from a Canadian employer. In some cases, they may qualify for work permits under the USMCA or apply for permanent residence through programs like Express Entry.
Should a US citizen become a temporary or permanent resident to work in Canada?
It depends on how long you plan to stay. Temporary residence works for short-term jobs. Permanent residence is better if you're building a long-term life in Canada. Many Americans start as temporary workers and apply for permanent status after gaining experience.
How long do temporary work permits last for US citizens working in Canada?
Most temporary work permits are valid for one to three years. The exact length depends on the job, employer, and program for which you're applying. Permits can sometimes be extended if your job continues and you stay eligible.
Can an international student from the US get a job in Canada after graduation?
Yes. US students in Canada can apply for a Post-Graduation Work Permit, which allows them to work for up to three years after completing their studies. This experience can also help them qualify for permanent residence through Express Entry.
Can a US citizen become a Canadian citizen if they work in Canada for a long time?
Yes. After becoming a permanent resident and living in Canada for at least three years in a five-year period, US citizens can apply for Canadian citizenship. They must also meet language and residency requirements and pass a citizenship test.
Final Thoughts
Working in Canada as a US citizen is absolutely possible, but the process involves more than just landing a job.
From work permits to tax rules to investment planning, every step needs careful attention. The right support makes all the difference. A cross-border advisor can help you avoid tax surprises, protect your wealth, and guide you through a successful move.
Whether you're exploring a short-term opportunity or planning a full relocation, take the time to plan and put together the right team of cross-border professionals.
Next Steps
If you’re a Canadian resident or planning to move to Canada or the US and need assistance with moving and optimizing your investments, estate planning, wealth management, and portfolio management, please get in touch. At SWAN Wealth, we specialize in Canadian financial planning, cross-border financial planning and cross-border wealth management.
Read More
If you’re planning a cross-border move, these articles and guides will help simplify your move and ensure you’ve covered everything.
- Moving to Canada from the US
- Exit Tax in the US — Everything You Need to Know If You’re Moving
- Green Card Exit Tax and the 8-Year Rule
- How to Move to Canada from the US
About the Authors
Tiffany Woodfield is an Associate Portfolio Manager licensed in Canada and the USA, a Chartered Investment Manager (CIM), a Chartered Retirement Planning Counselor (CRPC), a Trust and Estate Practitioner (TEP) and the co-founder of SWAN Wealth Management, along with her husband, John Woodfield. Tiffany advises clients who live in Canada and the United States and want to simplify their cross-border financial plan, move their assets across the border, and optimize their investments to minimize their tax burden. Together, Tiffany and John Woodfield help their clients simplify their cross-border finances and create long-term revenue streams that will keep their assets safe whether they live in Canada or the U.S.
John Woodfield is a Financial Management Advisor (FMA), a Chartered Investment Manager (CIM), and a Certified Financial Planner (CFP), and in 2007 was inducted as a fellow of the Canadian Securities Institute (FCSI). As a portfolio manager and CFP®, he works with clients across Canada. John Woodfield’s clients are families, individuals and business owners who understand the importance of comprehensive wealth and investment plans driven by the lifestyle they want to lead.
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