Washington Guide for Canadians

Quick Facts

State Income Tax	No state income tax (capital gains tax 7-9.9% on high earners)
Sales Tax	6.5% state + local (average 9.4% total)
Driver's License Grace Period	30 days for residents
Residency Requirement for Tax	Domiciled in WA for 183+ days or permanent home
Vehicle Registration Deadline	30 days for residents
REAL ID Deadline	May 7, 2025 for domestic flights
Enhanced Driver's License	Available for US citizens only

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 temporary mailing address

Week 3-4: Official Registration

• Apply for Washington driver's license (within 30 days)
• Register vehicle if brought from Canada (within 30 days)
• Register to vote (if eligible)
• Obtain Washington vehicle insurance

Month 2-3: Establishing Residency

• Update address with Canadian financial institutions
• Establish Washington ties and connections
• Research healthcare options and 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 Washington residential address
• Birth certificate or citizenship documents

Testing Requirements:

• Written knowledge test required for Canadian citizens
• Road skills test required - WA does not recognize foreign licenses
• Vision screening required

Enhanced Driver's License (EDL) Option:

• Available for US citizens only - not Canadians
• Allows land/sea border crossings to Canada
• REAL ID compliant for domestic air travel
• Canadians must use passport for border crossings

Important Notes:

• 30-day limit to get Washington license after residency
• REAL ID required by May 7, 2025 for air travel
• Both written and road tests required for Canadians
• No Enhanced Driver's License available for non-citizens

Vehicle Registration

• Register within 30 days of establishing residency
• Emissions testing required in certain counties
• Annual vehicle registration renewal required
• Washington insurance required for registration

Tax & Residency Considerations

Washington State Tax Benefits

• **No state income tax** - one of only 9 states
• **Capital gains tax** 7% (9.9% for highest earners) on sales over $262,000
• **No inheritance tax**
• **Moderate property taxes** (0.76% effective rate)
• **Higher sales tax** 6.5% state rate (9.4% average total)

Establishing Washington Tax Residency

Washington residency is based on domicile and physical presence:

• Domiciled in Washington (intent to make permanent home)
• Physical presence 183+ days in tax year, OR
• Maintaining permanent place of abode in Washington

Documentation to Establish Residency

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

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

• Washington has expanded Medicaid but limited for non-citizens
• Travel insurance strongly recommended
• Consider US health insurance if staying permanently
• Excellent medical facilities in Seattle, Spokane, Tacoma

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
• Washington domicile-based residency requires careful planning

Property Considerations

• Higher property values than most states (especially Seattle area)
• Homestead exemption available ($125,000)
• Real Estate Excise Tax (REET) on property sales
• Impact on Canada's principal residence exemption

Climate & Lifestyle Benefits

• Mild coastal climate, minimal snow in western areas
• Mountains, coast, and islands - diverse geography
• No state income tax advantage
• Strong Canadian expat communities (especially Vancouver area)

Travel Documentation

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

Cost of Living Reality Check

Washington offers no state income tax but has high sales taxes and property costs, especially in Seattle metro. Eastern Washington is more affordable. Gas tax is among highest in nation at 52.8 cents/gallon.

Key Contacts & Resources