California Guide for Canadians

Quick Facts

State Income Tax	1% - 13.3% progressive (highest in US)
Sales Tax	7.25% state + local (up to 11.75% total)
Driver's License Grace Period	10 days for residents
Residency Requirement for Tax	Present in state for other than temporary purpose
Vehicle Registration Deadline	20 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 California driver's license (within 10 days)
• Register vehicle if brought from Canada (within 20 days)
• Register to vote

Month 2-3: Establishing Residency

• Update address with Canadian financial institutions
• Establish California ties
• Consider California 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 California residential address

Testing Requirements:

• Written test required for Canadian citizens
• Road test may be required at DMV discretion
• Vision screening required

Important Notes:

• Only 10-day limit to get California license after residency
• REAL ID required by May 7, 2025 for air travel
• California has strict documentation requirements

Vehicle Registration

• Register within 20 days of residency
• Smog check required for most vehicles
• California insurance required for registration
• Import fees may apply for Canadian vehicles

Tax & Residency Considerations

California State Tax Reality

• **Highest state income tax** in the US (up to 13.3%)
• **High sales tax** up to 11.75% with local taxes
• **Inheritance tax** on estates over $12.92 million
• **High property taxes** in many areas

Establishing California Tax Residency

California uses the most aggressive residency rules in the US:

• Present in California for other than temporary purpose
• Intent to remain permanently
• California ties stronger than previous residence

Documentation to Establish Residency

• California driver's license and voter registration
• Bank accounts, utility bills in California
• Professional licenses, club memberships
• Location of personal property and family

Critical Tax Warning

California is extremely aggressive about tax residency! Even temporary stays can trigger tax obligations. Recommendation: Consult a cross-border tax professional before establishing any California ties.

Healthcare Considerations

Insurance Options

• California has no public health insurance for non-citizens
• Covered California marketplace available for eligible residents
• Travel insurance essential
• US health insurance very expensive but comprehensive coverage available

Prescription Medications

• Bring adequate supply from Canada
• California has strict prescription transfer requirements
• US prices significantly higher than Canadian prices
• Consider Canadian pharmacy mail-order if legally permissible

Special Considerations for Snowbirds

California Residency Risks

• California aggressively pursues tax residents
• Even temporary moves can trigger residency
• "Safe harbor" rules are very limited
• Carefully document temporary/vacation status

Property Considerations

• Extremely high property values
• Proposition 13 property tax limitations
• Impact on Canada's principal residence exemption
• Earthquake and fire insurance essential
• HOA fees common and often expensive

Cost of Living Reality

• Among highest costs in North America
• Housing costs 2-3x national average
• High utility costs, especially electricity
• Expensive dining and entertainment

Travel Documentation

• Ensure passport validity (6+ months remaining)
• Consider Global Entry/NEXUS for easier crossings
• Track days meticulously - California monitors this
• Document temporary/vacation purpose clearly

Snowbird Warning

California is NOT snowbird-friendly. The state actively pursues part-year residents for taxes. Consider other western states if you want seasonal residence.

Key Contacts & Resources