Question: I am a U.S. citizen. If I move to Canada to live and work there as a Canadian permanent resident, do I pay both U.S. and Canadian taxes?

Answer:

As a U. S. citizen living in Canada you:

  • Are required to file annual U.S. income tax returns and may be required to file certain information returns if applicable (e.g. Form 8891 (PDF), U.S. Information Return for Beneficiaries of Certain Canadian Registered Retirement PlansForm 3520 (PDF),Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign GiftsTD F 90-22.1 (PDF), Report of Foreign Bank and Financial Accounts (FBAR); Form 8938 (PDF), Statement of Specified Foreign Financial Assets).
  • Must report your worldwide income on your U.S. income tax return if you meet the minimum income filing requirements for your filing status and age.
  • Must contact the Canadian government to determine whether you must file a Canadian tax return and pay Canadian taxes.
  • May be able to elect to exclude on your U.S. income tax return some or all of your foreign earned income, if certain requirements are met, or to claim a foreign tax credit if Canadian income taxes are paid.

http://www.irs.gov/Help-&-Resources/Tools-&-FAQs/FAQs-for-Individuals/Frequently-Asked-Tax-Questions-&-Answers/U.S.-Aliens-and-Citizens-Living-Abroad/Canadian-&-U.S.-Tax-Issues/Canadian-&-U.S.-Tax-Issues