What is departure tax and when do I have to pay it if I emigrate from Canada?

"Departure tax" isn't a separate tax with its own line on your return — it's the shorthand for what the Income Tax Act does the moment you stop being a Canadian resident for tax purposes. On that date, you're treated as having sold most of the property you own at its fair market value, and immediately bought it back at the same price. Because nothing actually changes hands, this is called a deemed disposition, and like any other disposition it can produce a capital gain, or loss, that has to be reported.

You pay the resulting tax with your regular return for the year you leave — it's folded into your ordinary T1 filing for that year, not billed on a separate schedule or at a different time. Not everything you own is caught: Canadian real estate, pensions, and a handful of other categories are carved out, and a deferral is available if you'd rather not pay right away. Because the calculation turns on a snapshot valuation taken on your departure date, getting good advice and a proper valuation before you actually leave matters far more than trying to sort it out afterward.