Virginia Guide for Canadians

Quick Facts

State Income Tax	Progressive 2.0% to 5.75%
Sales Tax	5.3% state + 1% local (5.77% average combined)
Driver's License Grace Period	6 months for non-residents, immediate for residents
Residency Requirement for Tax	183+ days or domicile in Virginia
Vehicle Registration Deadline	30 days for residents
REAL ID Deadline	May 7, 2025 for domestic flights
Enhanced Driver's License	Not available

First 90 Days Checklist

Week 1-2: Essential Documents & Registration

• Register with USCIS if staying 30+ days (required by April 11, 2025)
• Gather required documents for driver's license
• Open US bank account
• Set up Virginia mailing address

Week 3-4: Official Registration

• Apply for Virginia driver's license (immediately upon residency)
• Register vehicle if brought from Canada (within 30 days)
• Register to vote (if eligible)
• Update address with financial institutions

Month 2-3: Establishing Residency

• Establish Virginia ties and connections
• Research healthcare options and insurance
• Connect with local Canadian communities
• Consider property ownership or long-term lease

Driver's License & Vehicle Requirements

For Canadian Citizens

Required Documents:

• Original valid Canadian passport (proof of legal presence)
• Social Security Number documentation (if applicable)
• Two proofs of Virginia residential address
• Original Canadian driver's license (will be surrendered)

Testing Requirements for Canadians:

• Canadians may be exempt from written and road tests
• Virginia has reciprocal agreements with Canada
• Decision made at DMV's discretion
• Vision screening always required

Canadian License Advantage:

• Virginia recognizes Canadian licenses for exchange
• May avoid written and road skills tests
• Process faster than other foreign licenses
• Must still meet all documentation requirements

REAL ID Option:

• Available for qualifying Canadian residents
• Required for domestic air travel after May 7, 2025
• Additional documentation required
• Must apply at DMV customer service center

Important Notes:

• Non-residents can drive on Canadian license for 6 months
• Must get Virginia license immediately upon establishing residency
• REAL ID required by May 7, 2025 for air travel
• Employment triggers immediate license requirement

Vehicle Registration

• Register within 30 days of establishing residency
• Annual safety inspection required
• Emissions testing required in Northern Virginia
• Virginia insurance required for registration

Tax & Residency Considerations

Virginia State Tax Structure

• **Progressive income tax** 2.0% to 5.75% based on income
• **Standard deduction** $8,750 individual, $17,500 joint (2025)
• **No state estate tax** - repealed
• **Low property taxes** (0.72% effective rate)
• **Moderate sales tax** 5.3% state + 1% local mandatory

Establishing Virginia Tax Residency

Virginia residency is based on domicile and statutory residence:

• Domiciled in Virginia (intent to make permanent home)
• Statutory resident: 183+ days in tax year
• Maintaining permanent place of abode in Virginia

Documentation to Establish Residency

• Virginia driver's license and voter registration
• Bank accounts and utility bills in Virginia
• Employment or business activities in Virginia
• Professional licenses, club memberships
• Property ownership or long-term lease

Business-Friendly Environment

Virginia has a moderate tax burden with competitive rates. The state is consistently ranked as business-friendly with strong economic growth, particularly in Northern Virginia's technology corridor and the Hampton Roads area.

US Federal Tax Implications for Canadians

Important: Under the Substantial Presence Test, you may be considered a U.S. resident for tax purposes.
New Requirement: Canadians staying 30+ days must register with USCIS by April 11, 2025.
Recommendation: Consult a cross-border tax professional.

Healthcare Considerations

Insurance Options

• Virginia has expanded Medicaid with limited access for non-citizens
• Travel insurance strongly recommended
• Consider US health insurance if staying permanently
• World-class medical facilities in Richmond, Norfolk, Northern Virginia

Prescription Medications

• Bring adequate supply from Canada
• Understand prescription transfer requirements
• US prices often higher than Canadian prices
• Research pharmacy options and discount programs

Special Considerations for Snowbirds

New US Registration Requirements (2025)

• Canadians staying 30+ days must register with USCIS
• Registration required by April 11, 2025
• Print and carry latest I-94 as proof of legal entry
• Failure to register may affect future US travel

Maintaining Canadian Ties

• Keep principal residence in Canada
• Monitor days in U.S. for tax reasons (183-day rule)
• Maintain Canadian insurance & banking relationships
• Virginia domicile-based residency requires careful planning

Property Considerations

• Moderate property values with regional variations
• Low property tax rates (0.72% effective)
• Northern Virginia significantly more expensive
• Impact on Canada's principal residence exemption

Climate & Lifestyle Factors

• Four distinct seasons with mild winters
• Rich history and cultural attractions
• Proximity to Washington DC and major East Coast cities
• Growing Canadian communities in Northern Virginia

Geographic Advantages

• Close to Washington DC, Baltimore, Philadelphia
• Access to beaches (Virginia Beach) and mountains (Blue Ridge)
• Major international airports (Reagan, Dulles, Richmond)
• Reasonable driving distance to Canadian border

Travel Documentation

• Ensure passport validity (6+ months remaining)
• Consider Global Entry/NEXUS for easier border crossings
• Enhanced Driver's License not available in Virginia
• I-94 registration now required for 30+ day stays

East Coast Hub

Virginia offers excellent access to the East Coast corridor with moderate taxes and business opportunities. The state combines historical charm with modern economic opportunities, particularly in technology, defense, and government sectors.

Key Contacts & Resources