Moving to Canada from the UK: What Happens to Your Pay
Updated May 31, 2026 · 7 min read
Canada is one of the most popular destinations for UK movers, and the tax system, while familiar in spirit, works differently in the details. Here’s what changes about your pay when you cross the Atlantic.
The headline: a little more in your pocket
On a like-for-like 100k salary, Canadian take-home is around 74% versus roughly 69% in the UK — and you escape the £100k allowance trap. Full numbers in UK vs Canada salary.
What changes in your pay
- Two layers of income tax. Instead of one UK income tax, you pay federal tax (15%–33%) and a provincial tax that varies a lot by province.
- CPP and EI replace National Insurance. The Canada Pension Plan (5.95% up to C$71,300) and Employment Insurance (1.64% up to C$65,700) come off your pay instead of NI.
- Basic personal amount. Like the UK personal allowance, roughly C$16,129 of income is effectively tax-free via a federal credit (plus a provincial amount).
- Province is a big lever. Alberta is light on tax; Quebec is heavy. Your take-home can swing thousands depending on where you land.
Healthcare and pensions
- Healthcare is public and provincial — but some provinces have a waiting period of up to three months after you arrive, so short-term private cover is worth considering.
- Retirement: alongside CPP, many employers offer an RRSP (similar to a workplace pension). Your UK pension usually stays in the UK — take regulated advice before moving it.
💸 Moving money between countries?
Moving savings from a UK account to a Canadian one — or getting paid across both during the transition — A service like Wise gives you the real mid-market exchange rate with low, transparent fees — typically far cheaper than a high-street bank, and it works across the US, UK, Australia and Canada.
Before you go: a checklist
- Confirm your visa / PR status and work rights.
- Apply for a Social Insurance Number (SIN) on arrival — you can’t be paid without it.
- Choose a province (it materially affects your take-home and healthcare wait).
- Open a Canadian bank account and set up short-term health cover if needed.
- Tell HMRC you’re leaving (form P85) and review your UK pension and ISA position.
Run your numbers
Model your new salary with the Canadian calculator, compare it to your UK pay with the UK calculator, or see the full take-home by country picture.
Calculate your own take-home pay
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