Income tax difference between California and Ontario?

Hi,
I'm am moving to California from Ontario to work on an TN1 visa.
I'm trying to decide if I should try to claim non-residency status in Canada for tax purpose.
Does anybody know if there is a major difference in Income tax rate for California and Ontario if income is >$80k range?
I went online and found the state and fexeral 11.2% and 26% respectively in California. And it is 9.3% and 28% in Ontario. Given this, both tax rate works out to be around the same for California and Ontario. But oddly I spoke with a friend in California who also moved from Ontario to California and he insists there is a big tax difference for Ontario and California once over $60k.
Does anybody have any experience in this?

Thanks,
Winnie

TN-1 requires "bona-fide non-immigrant intent" so you're better off filing on 1040NR as a non-resident and keeping your tax home in Ontario if you're only going to be in the US for a year or two. It's a ton of paperwork to move your tax home into the US and then back out again.

There may be a tax savings, you'd need to actually sit down with the tax returns and complete them with your personal exemptions etc. to work out exactly how much you save.

My accountant is convinced that you're significantly better off in Alberta than California if you earn over $72,000, but you have to bear in mind the exchange rate - $80k in the US now is worth more in Canadian dollars than it was a few months ago, so that can push you into a higher tax bracket in Canada.

So can Canadians choose to file taxes in one country over the other when working in the US?

Depends what your status in the US is.

So can Canadians choose to file taxes in one country over the other when working in the US?

Well it's not quite that simple, you have to pay payroll taxes for wherever you work but you can keep your tax home in one country or the other if you are in a non-immigrant status, but it depends on where you have residential ties. If you keep residential ties in Canada then you have to file in Canada and as a non-resident in the US. If you want to file as a resident of the US, you have to sever all those ties and although you may save money filing as a US resident, it can be a bit of a pig to sever ties and then move back to Canada if you are only going to be in the US for a short time.

To avoid dual taxation you have to file for a foreign tax credit.

It's my 1st post and I'm looking for the straight goods on corporate relocation to So. Cal from So. Ontario. My employer is tempting me with a nice promotion, hence a L1 Visa and my family (wife and 2 girls 13-10) Unsure on what the overall tax impact (federal and state) will be, coupled with health insurance payments etc.
I gather I wil not be allowed to bring my leased vehicle as it would void the warranty, and I'm trepidacious about selling my home here as well as divesting my RRSps etc. Is it worth it to do it all things being equal, what options have other used to make the most of similar opportunites, are the schools OK etc.
If you have had a similar experience I would like very much to hear about it, good and bad. Truly appreciate your input.

By corporate relocation are you talking about you personally moving, or moving your corporation?

personnaly moving for job at corporate office

You don't have to get rid of your RRSPs, the 2008 tax treaty essentially treats them as IRAs, but you have to declare them on Form 8891 when you file your 1040. Generally speaking you're better off moving to the US first even if you want to get rid of them, because if you get rid of them in Canada you have to pay income tax, if you live elsewhere you pay Part XIII tax at 25% which is usually lower than the income tax (slightly).

If you move your tax home to California you will probably be better off than in Ontario, depends on your income, what your health is like (because healthcare costs more there) etc.

The reason you can't take your car is because it's leased, not because of the warranty. You must own it to be able to export it.

The only way to figure it for sure really is to sit down with a 1040 and the California returns and work it out. Your children won't be eligible for the US child tax credit.

It's my 1st post and I'm looking for the straight goods on corporate relocation to So. Cal from So. Ontario. My employer is tempting me with a nice promotion, hence a L1 Visa and my family (wife and 2 girls 13-10) Unsure on what the overall tax impact (federal and state) will be, coupled with health insurance payments etc.
I gather I wil not be allowed to bring my leased vehicle as it would void the warranty, and I'm trepidacious about selling my home here as well as divesting my RRSps etc. Is it worth it to do it all things being equal, what options have other used to make the most of similar opportunites, are the schools OK etc.
If you have had a similar experience I would like very much to hear about it, good and bad. Truly appreciate your input.

We have the same dilemma- to move or not to move! Employer giving my wife L1 (most likely L1A) and if we don't move (to central Cali) she has to quit.
From research i did, if we decide to move, we gonna sel out house in GTA, sel 1 car, import 2nd one and leave RRSP, RESP and checking account. Also, we're thinking to move tax home to States as than we will be planing os staying in States for good.
Income tax calc , you can see in other thread i opened