Ostroff, Fair and Company
*Ostroff, Fair and Company>>>Canada Taxes

For a mid-income single person, how different would the total taxes be if they lived in Canada or the USA?


Considering Federal, Ontario Provincial, and sales taxes (14%) in Canada and Federal, MI State, SS, FICA Hi-Tax, and sales (6%) in the US for an income of 130k?

The taxes on 130K will be lower in states like Nevada which have zero state tax. There will be not be much difference in the tax paid between Ontario (Canada) and US states with high state taxes like California. Social security will eat away 16% on income upto 80K (in your case about 10,000 USD). CPP in Canada eats away only 10% upto 40K (in your case about 4,000 CAD) . (Employer + Employee in both cases).

You will pay less money in taxes + Health insurance in US overall if you
1. Have an unemployed spouse.
2. Plan on taking a mortgage.
3. Live in a state with no state tax (Nevada)
4. are young and healthy.

You will pay less money in taxes (health insurance is free) in Canada overall if you
1. Have a spouse with relatively high income.
2. Own your house outright or rent.
3. are self employed and have incorporated your business.
4. have health problems or have dependants with health problems.
5. don't spend a lot.


But then , this is assuming that you make the same money in the US and Canada. With marketable skills you generally make about 20 to 50% more in the US than you can in Canada.
I do not know, but at least in Canada you will know that you money is not paying to kill civilians around the world, especially in Iraq, and you are not making the President Bush or Vice-P Dick richer than what they already are right now.
Would you be similarly employed in another jurisdiction?

You'll probably find out that life's decisions - like investment decisions - should not be predicated on taxes.

Why live somewhere that the taxes are lower....but you aren't happy...See what i mean?
For this level of income in Canada, Federal tax would be much higher. Since provincial tax is normally a percentage of the federal tax it would also be higher than most state taxes. Over all tax levels are predicated by which state and province you live in i.e. Alberta has no provincial income tax and no sales tax. New York state income tax is very high and most cities have a city employment tax. I assume from the question that you are contemplating living in Ontario. You should know that there are other benifits, like lower health care costs as it is universal and covers all citizens.
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