Arizona Guide for Canadians

Quick Facts

State Income Tax	2.59% flat rate (lowest among states with income tax)
Sales Tax	5.6% state + local (varies by county)
Driver's License Grace Period	30 days for residents
Residency Requirement for Tax	183+ days per year or domicile
Vehicle Registration Deadline	30 days for residents
REAL ID Deadline	May 7, 2025 for domestic flights

First 90 Days Checklist

Week 1-2: Essential Documents

• Gather required documents for driver's license
• Open US bank account
• Set up temporary mailing address

Week 3-4: }Official Registration

• Apply for Arizona driver's license
• Register vehicle if brought from Canada
• Register to vote

Month 2-3: Establishing Residency

• Update address with Canadian financial institutions
• Establish Arizona ties
• Consider Arizona vehicle insurance

Driver's License & Vehicle Requirements

For Canadian Citizens

Required Documents:

• Original valid Canadian passport
• Proof of Social Security Number (if applicable)
• Two proofs of Arizona residential address

Testing Requirements:

• Written test required for Canadian citizens
• Road test waived for valid Canadian license holders
• Vision screening required

Important Notes:

• 30-day limit to get Arizona license after establishing residency
• REAL ID required by May 7, 2025 for air travel
• Travel ID option available for REAL ID compliance

Vehicle Registration

• Register within 30 days of residency
• Emissions testing required in Phoenix and Tucson areas
• Arizona insurance required for registration

Tax & Residency Considerations

Arizona State Tax Benefits

• **Flat 2.59% income tax** – lowest rate among income tax states
• **No inheritance tax**
• Moderate property taxes

Establishing Arizona Tax Residency

You're considered an Arizona resident for tax purposes if:

• Your domicile (permanent home) is in Arizona, OR
• You spend 183+ days in Arizona during the tax year
• Arizona is your primary residence location

Documentation to Establish Residency

• 183-day log (non-consecutive days okay)
• Arizona license, voter registration
• Bank accounts, utility bills, club memberships
• Arizona address for tax filings

US Federal Tax Implications for Canadians

Important: Under the Substantial Presence Test, you may be considered a U.S. resident for tax purposes.
Recommendation: Consult a cross-border tax professional.

Healthcare Considerations

Insurance Options

• Arizona has no public health insurance for non-citizens
• Travel insurance strongly recommended
• Consider US health insurance if staying permanently
• Arizona has extensive medical facilities in Phoenix/Tucson

Prescription Medications

• Bring an adequate supply from Canada
• Understand prescription transfer requirements
• US prices often higher than Canadian prices
• Consider mail-order pharmacy options

Special Considerations for Snowbirds

Maintaining Canadian Ties

• Keep principal residence in Canada
• Monitor days in U.S. for tax reasons (182-day rule)
• Maintain Canadian insurance & banking relationships

Property Considerations

• Understand Arizona homestead exemption laws
• Impact on Canada's principal residence exemption
• Desert climate property maintenance considerations
• HOA fees common in Arizona communities

Climate & Lifestyle Adjustments

• Extreme summer heat (May-September)
• High UV exposure year-round
• Water conservation awareness
• Monsoon season preparation (July-August)

Travel Documentation

• Ensure passport validity (6+ months remaining)
• Consider Global Entry/NEXUS for easier border crossings
• Track days in each country meticulously

Record Keeping Tip

Maintain a detailed day-by-day calendar of your location. This is essential for proving tax residency and avoiding dual taxation issues.

Key Contacts & Resources