Income tax in Canada vs US

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shaulCanuckAbroad Regular
Posts: 30
Joined: Tue Jul 07, 2009 11:06 pm

Income tax in Canada vs US

Post Mon Aug 17, 2009 11:29 am

In Canada there is a strong opinion that we pay much more taxes than in States, so i decided to calculate rates using different websites.

Result i got was very strange. I took as gross income 120K.

I got in California (both Fed and State tax) = $36,176
In Ontario (both Fed and provincial) = $36,719
In Alberta (both Fed and provincial) = $33,865 (much lower than in Cali).
And this is considering the fact that we have free health care.

Maybe I did something wrong?

I used:
Tax Brackets (Federal Income Tax Rates) 2000 through 2009
Canadian Income Tax Calculator 2009
California Income Tax Rates - California & other state tax rates information. CA tax calculator.

-- Mon Aug 17, 2009 11:31 am --

I used next websites for comparison ... te_CA.html

Re: Income tax in Canada vs US

Post Tue Aug 18, 2009 5:28 am

nope, probably didn't do anything wrong. Tax rates in the US are much like tax rates in Canada, and yet somehow everyone thinks Canada's are higher.

However, I will note that some states do not have income tax Alaska,
New Hampshire, Tennessee, Florida, South Dakota, Washington,
Nevada, Texas, and Wyoming. And some states have lower income taxes than others. I believe California has one of the highest rates of income tax in the country.

There are A LOT of factors to consider when moving your tax home for whatever reason. Income taxes is one. What you get for your money is another. What you can deduct on your tax returns is another. This site might help

When I moved to North Carolina, my tax burden actually went UP from what I was paying in Ontario. And of course, I have no "free" healthcare here in North Carolina. Wages are considerably lower here, income tax rates are within points of a percentage, PLUS we pay property tax on our vehicles, as well as "real" property, to the city & county! The only thing that is lower is the sales tax, but not by much really considering.

Here's a listing of US state income tax rates
and US federal income tax rates

And Canada income tax rates
shaulCanuckAbroad Regular
Posts: 30
Joined: Tue Jul 07, 2009 11:06 pm

Re: Income tax in Canada vs US

Post Tue Aug 18, 2009 8:18 am

My understanding that the only advantage in Cali that you can write off more taxes than in Ontario (like property tax, medical expences, interest on mortgage etc).
Wonder if they have analog of our RRSP tax shelter?
ThbeavNew Member
Posts: 1
Joined: Mon Dec 06, 2010 6:39 pm

Re: Income tax in Canada vs US

Post Mon Dec 06, 2010 6:43 pm

IN the middle things are closer. Try the ends, say $300,000 where it is 38% or under $25,000 where it is Zero, you actually get $5,000 more than you paid in in the US.
rstutzNew Member
Posts: 2
Joined: Wed Jun 22, 2011 9:50 am

Re: Income tax in Canada vs US

Post Wed Jun 22, 2011 10:39 am

I just did the calculations for the basic taxes for a single person on $60,000 and $120,000 gross here in SK vs the same in FL. On $60,000, income taxes in SK were $17,273.54 but in FL they would only be $11,181.25. A difference of $6,092.29. On $120,000 SK was $39,811.52, FL $27,309.25 a difference of $12,502.27.

The Federal income taxes are almost the same, slightly lower there but where you get the differences is in State income taxes, sales taxes, GST and all the other taxes Canadians are charged as well. E.I in FL is only on the first $7,000 but in Sk it is on the first $44,000. Same percentage rate but the difference is around $740. In FL there is a 7% sales tax but not GST. Property taxes are about the same.

It majorly depends on which state you are in in the USA. There States have much more flexibility than Provinces here. Which in my opinion is good.

Also in the States there are much more tax breaks than Canada. Sales taxes on all major purchases are tax deductible for example. Families with children get major tax breaks. I have siblings in the U.S. who, because of their children pay no income taxes and get $3,000 to $5,000 from the Gov.

And no free health care in the states? That is not true. It is just not universal and there is paperwork to do to show you qualify. Children and many seniors have free healthcare unless they are wealthy. I learned from my siblings experience that for child birth, they only had to pay for the first child and then after that the gov payed for the rest of the children. Now had they been making $120,000 a year then they would have had to pay for their own but then they could have afforded the $5,000 it costs anyway. I have had Nieces and Nephews that have had surgeries, broken arms, etc. The Gov paid for it. My Siblings just had to do a little paperwork to show they qualified.

And then the issue of quality of healthcare comes up. As a person who has experienced both Canadian and American Healthcare, I have found the Canadian appalling in comparison. There is a VAST difference in quality. To compare the 2 based on price alone is like comparing the price of a Kia Sportage to a Cadillac Escalade.

I know I am posting on an old thread but thought I'd post anyway.
NanookNew Member
Posts: 1
Joined: Fri Oct 14, 2011 12:04 am

Re: Income tax in Canada vs US

Post Fri Oct 14, 2011 12:33 am

RSTUTZ - Not sure how I stumbled on this, but ARE YOU KIDDING ME???? "I have found the Canadian (health care) appalling in comparison?"!!!! Where the HECK did you live in Canada? In the middle of nowhere? Because, duh, obviously some parts of Canada have crappy health care b/c the population is so small! Hard to convince a lot of professionals to move to Nowhere, Saskatchewan.

But I can assure you from MY experience - as a Canadian living in the US, I can say WITHOUT A DOUBT that the health care that my American husband, kids, and I received when we lived in Canada (Alberta) was EQUAL TO, if not often BETTER THAN, the health care we've received here in the US. In fact, my AMERICAN husband wants to move back to Canada b/c he believes the health care there is not only affordable, less complicated and non-discriminating, but SUPERIOR! We've NEVER received any "superior care" here in the US at all, despite the fact that we pay $1,800 PER MONTH in premiums, plus co-pays, and thousands in deductables!!! And we STILL have to wait 3-4 hours at the doctors office....wait days, if not weeks, just to find out if a procedure will be covered or not by the stupid insurance companies, etc. My husband's doctor recommends a procedure, and he waited 5 weeks just to find out that the insurance won't cover the procedure b/c THEY don't feel it's necessary, they think he can just take some drug instead...!!! Yep, of course the insurance companies and drug companies are in bed together!

My kids care in the US has been WORSE than the care they received in Canada. I take them to "their doctor", but never actually see "their doctor"....usually just the nurse...oh, sorry, not even a nurse, the "physicians assistant" who might as well be a receptionist they have such little training and knowlege.....and once in a while, some other random doctor will briefly stop in to see my kids. This on top of having to switch doctors for my kids FIVE TIMES b/c of changes to insurance (premiums go up, so employers change who they offer plans with). My youngest child got his shots, and - boom - we were sent out the door right after... a 'stick and go'. In Canada, there is MUCH more care given to the kids...the health units in AB spend time explaining the shots, answer questions, and even ask for you to wait after for 15 min to monitor the child, etc. Things were SO MUCH better and more professional in Canada where my oldest daughter had all her shots and early child care up there.

Oh, and of course I can't forget how I spend so much damn time on the phone dealing with the stupid insurance companies (with CEOs who make 10s of millions a year) - like when they mispell our names, give my kids all completely different doctors (not the one we specifically chose).... Then there's the "coding" nonesense - making us pay for things that should be covered, but were "coded" differently by their doctor's office. No wonder it's so expensive here - not just with the outrageous insurance executive pay, but the adminstrative BS! I think my doc's office has half a dozen billing clerks alone!

Now I know there are things that do suck about Canadian health care and obviously it's much better in the bigger urban centres than the remote, rural areas, but there is a reason polls show that 90% of Canadians would still NEVER trade their health care system for the crap down here. They might complain and want to see certain reform, but give it up entirely? No way! Yes, the US has more experienced specialists in certain areas and generally less wait for appointments, but doesn't mater how long the wait is when millions of people can't afford it anyhow! Oh, and can't forget how I was DENIED coverage for a condition that never required any hospitalization in Canada...a condition where my only risk is sudden-death. The individual market companies refused to cover me, so luckily my husband's $1,800 PER MONTH plan would cover me. Perhaps you lived in a poor, lower populated part of Canada and now live in a major centre with some fancy plan to say that Canada's health care is "appalling" by comparison. Perhaps you're very wealthy and can afford the best possible care in the US. But I will say this with my last breath - the US health care system, even with the many wonderful doctors, nurses, hospitals, technology, etc. is a DISGRACE to civilization, Christianity, etc,... B/c unless you're poor enough for medicaid, old enough for medicare, lucky enough to have a job w/ superior benefits, rich enough to not care, or perfectly healthy, this system SUCKS!

And while we're comparing, you can look it up, but survival rates for diseases are comparable (some higher, some lower) in Canada and the US.. Infant Mortality rates are LOWER in Canada. Life expectancy is HIGHER in Canada. And the Canadian gov't spends LESS PER CAPITA on health care than the US gov't, while ensuring ALL people have access. A small percentage of Canadians may go to the US for treatments, but often they are reimbursed by their provincial plan... And the US news doesn't seem to report how many Americans go to Canada, or other countries like Germany, for procedures too. Bottom line, I would never say that our care in Alberta was "appalling" or that our care in California has been "superior" in any way. There is MOST CERTAINLY NOT A "VAST DIFFERENCE" like you say. Actually, we hate the health care system here so bad that we often consider moving back, but we hate the cold weather up there even more.
westernmetaphorJunior Member
Posts: 20
Joined: Sun Aug 14, 2011 5:57 pm

Re: Income tax in Canada vs US

Post Thu Oct 27, 2011 2:17 am

Can the original poster compare Ontario and Alberta to the states of Alaska, Florida, Texas, Washington, Nevada, South Dakota and Wyoming?
mikebutlerNew Member
Posts: 1
Joined: Tue Mar 27, 2012 5:36 pm

Re: Income tax in Canada vs US

Post Tue Mar 27, 2012 5:47 pm


It's obvious why you chose that list of states: they are the only states that have no income tax. What I find interesting is that those states have solid streams of alternate income:

Alaska: oil
Florida: tourists (6% sales tax)
Texas: oil
Washington: tourists (6.5% sales tax)
Nevada: gambling/tourists (6.85% sales tax, 8.1% in Nevada)
South Dakota: oil
Wyoming: oil

So all in all it's a pretty skewed sample. It certainly doesn't negate the point of the original posters premise that Canadians are not significantly overtaxed relative to their American neighbors.
Madhav333New Member
Posts: 1
Joined: Tue Aug 26, 2014 1:03 am

Re: Income tax in Canada vs US

Post Thu Aug 28, 2014 12:34 am

Nevada has comparatively higher tax rates, even though all the states are in one country!
rstutzNew Member
Posts: 2
Joined: Wed Jun 22, 2011 9:50 am

Re: Income tax in Canada vs US

Post Sat Feb 14, 2015 9:00 pm

I personally was on a waiting list here for over 3 years for surgery, but because it did not stop me from working, it was considered an 'optional' surgery. Finally I got tired of waiting and decided to just head south and pay a few bucks to get it done. And due to the medical boards opinion I cannot receive the treatments here I need for my health. I live in the largest city in SK.
But this topic I believe is on Taxes, not health care. So I will not reply further to the rants other than to say that, and that I prefer the American system slightly over the Canadian.

Personal Taxes in Canada are definitely higher, but so are some of the benefits. There is hardly enough of a tax base to support the infrastructure needed in such a large country (land mass). While the initial tax bracket break down may not look that much different, there are way more tax breaks in the USA. Which makes taxes overall much lower.

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