GACK. That link reference had someone in Canada maxing out RRSP's at $22k per year, so paying net tax on $78k, versus someone only contributing $6k to 401k on $110k. Of course someone with 78K per year pays a lot less tax in dollars than someone earning $104k per year!! grrr. One pays 21 % taxes, at a lower income, and the other pays 28% taxes for a higher income. There are many other factors that we can't see in this equation as well.
Property tax is a different situation, by city and state, (ex., NJ appears to be horrendous for taxes, overall, really) for both countries.
The guy in the thread asked for the income taxes for someone in the U.S. with a $100K income, so I gave him the real results of someone with $110K with deductions making it about $103K of taxable income, so that was within 3% of what he was asking for.
We're second highest next to N.J.
I don't have a problem with your reply, it was actually quite generous to provide details as you did. Just with the original poster who did not state very clearly that maxing out retirements brought his income down to around $78k, and with the first $11k tax free, well, it was not really a full $100k taxable income..that op was asking a comparison for.
I was that poster. I assumed as mustachians that we'd be maxing out tax saving vehicles. And I did mention the reduced taxable income as clarification in a subsequent post.
Are you saying that those deductions do not exist in the States? Or that the maximums for tax savings vehicles are lower? Honest question b/c I do not know the answer.
As for the higher sales tax - that doesn't affect us as much as "regulars" since we don't by very much shit, right?
(sorry for being off-topic)
i have found that even some Canadians think that maxing out is far, far less than the total allowed to most, due to mis-understandings about their pensions mainly... for the US resident, similar confusion occurs (and doubly so if you are trying to think about across the border conditions). Also, the difference in SS and medicare versus CPP, Welfare, EI, and Medical etc. Very different systems. SS pays out double the benefits but costs double in payments upfront...
US / Canada Comparisons (SmartAsset.com calculator and EY tax calculator),
THIS DOES NOT INCLUDE FICA, CPP or EI Taxes paid by the employee, because these provide very real benefits in very different amounts in each country. Assume your own USA Health care costs are still to be added... could be $300 to $1000 per month.
Just State and Federal taxes==> $80k family income, with one high earner, and one SAH spouse, no kids, standard deduction not itemized.
Canada, Taxes are $15.5k to $20k ; US are $13k (Ohio, WA state is $3k less, etc.)
==> $100k family income, single high earner, married no kids.
Canada Taxes $17k to $22k ; USA $18.5k (ohio)
==> $150k family income
Canada Taxes are $44k to $52k; USA $34k (ohio); Wa state is $6k less...
etc.
One thing that I noted, was that in USA, there are far more possible deductions, on base taxes, too. Canada has the ccb for kids, etc.