Income Tax comparisions
#1
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Joined: Feb 2009
Posts: 10
Income Tax comparisions
Can anyone give me an idea of how much Income tax you would expect to pay on a $4000 per month salary ?
I know it will depend on tax credits (allowances) etc and the local tax rate... just wanted to know if someone was willing to give a more accurate figure for a family with 2 adults and 2 school children with only one adult in employment.
I have been using 25% as a rough guide to how much my gross wage would be eaten up by taxes .
quick edit (Ontario London area)
I know it will depend on tax credits (allowances) etc and the local tax rate... just wanted to know if someone was willing to give a more accurate figure for a family with 2 adults and 2 school children with only one adult in employment.
I have been using 25% as a rough guide to how much my gross wage would be eaten up by taxes .
quick edit (Ontario London area)
#2
Joined: Apr 2005
Posts: 9,606
Re: Income Tax comparisions
Can anyone give me an idea of how much Income tax you would expect to pay on a $4000 per month salary ?
I know it will depend on tax credits (allowances) etc and the local tax rate... just wanted to know if someone was willing to give a more accurate figure for a family with 2 adults and 2 school children with only one adult in employment.
I have been using 25% as a rough guide to how much my gross wage would be eaten up by taxes .
quick edit (Ontario London area)
I know it will depend on tax credits (allowances) etc and the local tax rate... just wanted to know if someone was willing to give a more accurate figure for a family with 2 adults and 2 school children with only one adult in employment.
I have been using 25% as a rough guide to how much my gross wage would be eaten up by taxes .
quick edit (Ontario London area)
#3
Re: Income Tax comparisions
48k is hardly going to lead to a life of luxury, but its better than 36k gross
25% is in the ballpark, but perhaps a bit high depending on the age of the kids and the province of residence etc. In ontario, assuming you use the spousal allowance, you are looking at about 19% including the EI and CPP contributions
http://www.walterharder.ca/Take%20Ho...alculator.html
http://www.taxtips.ca/calculators/taxcalculator.htm
Last edited by iaink; Feb 9th 2009 at 2:17 pm.
#4
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Joined: Feb 2009
Posts: 10
Re: Income Tax comparisions
I picked that as a randon figure... btw... thats $48K gross..
I am allowing for a modest offering at first, to see if its possible to survive on such income until my better half gets a job..
I would be expecting nearer to $60K but I want to Stress test it a bit ..
#5
Joined: Apr 2005
Posts: 9,606
Re: Income Tax comparisions
My apologies. Brain fart on the calculation front.
$48k is still pushing it, as is $60k (unless there is no mortgage to pay).
$48k is still pushing it, as is $60k (unless there is no mortgage to pay).
#6
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Re: Income Tax comparisions
Without going into too much detail, ,mortgage would be small if any (under $75K)
would have no car loans either.
thank you for the tax links ... very useful.
#7
Re: Income Tax comparisions
Factor property taxes into your budget...thats between $2-4k a year on average.
My wife doesnt work, and we have two kids. With a $600 a month mortgage my $70k just covers the bills, we are not saving a lot each month. If my wife worked we would end up paying most of that over for child care...
#8
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Joined: Feb 2009
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Re: Income Tax comparisions
Just keep in mind that even without car loans you had better budget to replace a vehicle every ten years or so here. So much salt on the road that corrosion can eat a vehicle alive in that time frame here. Plus potholes, cold starts etc etc. Its not a freindly place to be a car.
Factor property taxes into your budget...thats between $2-4k a year on average.
My wife doesnt work, and we have two kids. With a $600 a month mortgage my $70k just covers the bills, we are not saving a lot each month. If my wife worked we would end up paying most of that over for child care...
Factor property taxes into your budget...thats between $2-4k a year on average.
My wife doesnt work, and we have two kids. With a $600 a month mortgage my $70k just covers the bills, we are not saving a lot each month. If my wife worked we would end up paying most of that over for child care...
I had calculated changing Cars every 5 years into my sums.. luckily I will have a decent amount of savings behind me if I make the move... I just dont want to throw them all into a house purchase. So the Net of tax information is vital, I am being ultra conservative with my planning and indeed my expected income.. thank you again..
btw this forum has been fantastic in detailing overall experiences and information on the Immigration process... worth its weight in Virtual Gold..