Average deductions for salary
 

I know this maybe a pretty open question but what would be a good percentage to use for average deductions on a 140k salary.
I would like to do some initial calculations for my income should I be transferred to Canada based on working in south Mississauga living in the Oakville area.
For example my total deductions on a salary in North America is 35%, and I would like to know a rough guide for the area in Canada.

Hope you can help.

D

Re: Average deductions for salary
 

Re: Average deductions for salary
 

It's actually a pretty simple question using an online tax and deductions calculator like the one linked to by Hurlabrick. :-) Government collects income tax - at both the provincial and federal level, Employment Insurance (EI) and Canada Pension Plan (CPP) contributions. Both EI and CPP are have a maximum contribution which at that salary level you'll reach about 4 months into the year. On top of the government's slice you'll likely pay for extended health (figure $200 a month for a family plan if your employer cost shares) and any RRSP (Registered Retirement Savings plan so like a 401k in the US) contributions.

By the way, isn't Canada in North America?

Re: Average deductions for salary
 

Both posts really helpful thank you.

Yes you are correct about North America, I refer to Northern USA - Montana to be specific.

Looking at the calculators it's around 30% for the income tax and ranging between 5 - 10 % on the other items depending on coverage and RRSP contributions.

Re: Average deductions for salary
 

15 years ago, OH's total deductions were between 40-50%, but he did have payments for 3 insurance policies and RRSP on automatic deduction by the bank before we "saw" on our "living" salary.

Don't forget your $140,000 in the US is worth more than $140,000 Can

I guess you should also try to compare cost of living, price of houses etc in Mississauga/Oakville vs Montana

Re: Average deductions for salary
 

Aside from factors included in the tax calculators you need to look at property taxes, EI contributions, CPP contributions,uin Ontario, the OHIP premium (about $950 /yr on that salary). Then as non-tax issues, car insurance, union dues if applicable. Transport costs. There will be others.

You don't say if you are single or have a family. If single you could struggle by on that but if you have a non-earning spouse and, god I hope not, children, you'll be in very poor shape.

Especially if you'll live in Oakville

Re: Average deductions for salary
 

Thanks, I didn't really elaborate on the situation because it isn't really clear to us right now, I'm just building a picture around the salary at the moment. I want to be sure that when the offer comes that it is enough for us To be able to live at the same standard that we do now. I am married and it is just myself and the wife. We are currently living in Montana USA after a move from the UK JULY 2017.

Re: Average deductions for salary
 

140,000CAD Was what I am using to figure things out

Re: Average deductions for salary
 

That seems like a pretty good income to me. Granted, I don't live in Oakville.

I'm a bit puzzled by your travels, is there something common between Montana and southern Ontario or does living in Montana compel you to find something completely different? (I know southern Ontario well, not much about Montana but I did work in Laramie WY for a while and guess it to be similar).

Re: Average deductions for salary
 

Well as you have asked lol - I will give you the short version. In 2016 I was offered the opportunity to work at one of my company's sister factories in Montana, my wife and I sold up moved to Montana to start a new life adventure. We arrived in Montana in July 2017 and loved it, it is a great place to live. Unfortunately in November 2017 we were told that the company will be acquiring a new business and that the FTC would force them to sell one of their factories. This happens to be the factory I work at and due to my L1B visa I cannot stay with the new company and will be transferred to a new factory or go home. This certainly wasn't the plan but we have to stay positive and make the best of the situation.

Re: Average deductions for salary
 

Oh my, good luck in Ontario!

Re: Average deductions for salary
 

Re: Average deductions for salary
 

That's interesting, good to know. Hopefully we will be both working eventually but we'll have to see how that pans out.

Re: Average deductions for salary