In the United States, the first 15% of Social Security is tax-free and the amount of taxes paid on the rest depends on a person's overall income. In Canada the top tax bracket of 45% begins at CDN$55,000; in the States the top rate of nearly 38% kicks in around $285,000.
Wruk's recommendation to anyone relocating across the border is to seek professional advice before making the move. That's the best way to learn about various financial relief offered by U.S.-Canada treaties, proper foreign tax-credit planning, exemptions, rolling over pensions and 401(k)s, and the like. "I encourage people to get all their assets on one side of the border or the other before relocating," he says. "It makes things a whole lot easier."