Taxation in Canada..
Jun 13th 2001, 11:23 am
#1
Guest
Posts: n/a
I am a prospective immigrant to Canada in the coming 6 months. I have stayed in the
US for the past 3 years, and now people are scaring me on high taxation in Canada.
1. Question, here is what I pay in the US, and I would really appreciate if anyone
can give me a comparison to this in Canada: (I have taken unit as 100 so let us
not go into currency details)
Gross Salary: 100.00
Social Security: 6.20 Medicare: 1.45 State Tax (NJ) 5.00 (on income from $2K onwards)
Federal Tax 28.00 (this is my slab the steps are now 15%, 28%, 31%, 36% and so on..)
My last year tax return showed a marginal tax (Tax divided by gross income) showed
Federal around 22% and State around 4% + 6.20 SSN and 1.45% Medicare..totaling
around 33.65%
2. Question, we have 6% State Sales tax on goods purchased like Electronics, Gas etc.
Only thing non taxable I have seen is food (maybe I do not see on my bill) and
clothes. But food is not that much of an expense, so I am not worried and
Electronics (I have built my household goods in the US that I plan to bring them
with me). Also buying a 10% more expensive TV in Canada will never influence my
decision to move to a better country.
3. Question are there any comparable plans for Retirement like 401K in US.
4. Question, if I buy a house as soon as I land, will my interest amount be
deductible as it is in the US on my monthly mortgage.
Thx if anyone can reply to the above,
Sam
US for the past 3 years, and now people are scaring me on high taxation in Canada.
1. Question, here is what I pay in the US, and I would really appreciate if anyone
can give me a comparison to this in Canada: (I have taken unit as 100 so let us
not go into currency details)
Gross Salary: 100.00
Social Security: 6.20 Medicare: 1.45 State Tax (NJ) 5.00 (on income from $2K onwards)
Federal Tax 28.00 (this is my slab the steps are now 15%, 28%, 31%, 36% and so on..)
My last year tax return showed a marginal tax (Tax divided by gross income) showed
Federal around 22% and State around 4% + 6.20 SSN and 1.45% Medicare..totaling
around 33.65%
2. Question, we have 6% State Sales tax on goods purchased like Electronics, Gas etc.
Only thing non taxable I have seen is food (maybe I do not see on my bill) and
clothes. But food is not that much of an expense, so I am not worried and
Electronics (I have built my household goods in the US that I plan to bring them
with me). Also buying a 10% more expensive TV in Canada will never influence my
decision to move to a better country.
3. Question are there any comparable plans for Retirement like 401K in US.
4. Question, if I buy a house as soon as I land, will my interest amount be
deductible as it is in the US on my monthly mortgage.
Thx if anyone can reply to the above,
Sam
Jun 13th 2001, 6:09 pm
#2
Guest
Posts: n/a
Sam
Canadian tax is not a lot higher than US after 2000 tax cut. It depends on the
provinces for eg the highest tax bracket for fed+Alberta is 39%. The tax brackets are
much lower overall but if your every dollar above $100,000 is taxed at 39% maximum.
Federal surtax has been eliminated.
Maximun payroll tax(US's 7.65% social security tax) is a lot lower: $2400++ in 2001.
For a single earning CAD60,000 the tax rate is around 25%. Check my website:
http://www.geocities.com/ptmlim for Canadian tax calculators.
Income splitting is not allowed. If you have a non-working spouse and you feel
comfortable, it is better to transfer all your assets to your non-working spouse
before landing. You'll find that your family save thousands of dollars on taxes on
earnings from those assets.
Here's answers to some of your questions:
>
>
It is not that high. Rather the problem is lower pay. For eg CAD60,000 is considered
high income.
>
>
>
>
>
>
>
>
>
>
>
>
>
Dollar to dollar you probably pay more in US.
>
>
>
>
>
>
In BC, food: 0%, restaurant & labor: 7%, household items/clothes/electronics etc:14%.
>
RRSP but it works differently. Your RRSP contribution limit is 18% of your previous
year income subject to max $14,000 roughly. You can attribute part of it for your
spouse, the only legal mean of income-splitting.
>
>
Unlike the US, Mortgage interest is not deductable in Canada at all. If you've lived
in BC for more than a year and the house is your principal residence and the purchase
price is less than CAD250,000, you don't have to pay property transfer tax.
Thanks
Peter
Canadian tax is not a lot higher than US after 2000 tax cut. It depends on the
provinces for eg the highest tax bracket for fed+Alberta is 39%. The tax brackets are
much lower overall but if your every dollar above $100,000 is taxed at 39% maximum.
Federal surtax has been eliminated.
Maximun payroll tax(US's 7.65% social security tax) is a lot lower: $2400++ in 2001.
For a single earning CAD60,000 the tax rate is around 25%. Check my website:
http://www.geocities.com/ptmlim for Canadian tax calculators.
Income splitting is not allowed. If you have a non-working spouse and you feel
comfortable, it is better to transfer all your assets to your non-working spouse
before landing. You'll find that your family save thousands of dollars on taxes on
earnings from those assets.
Here's answers to some of your questions:
>
>
It is not that high. Rather the problem is lower pay. For eg CAD60,000 is considered
high income.
>
>
>
>
>
>
>
>
>
>
>
>
>
Dollar to dollar you probably pay more in US.
>
>
>
>
>
>
In BC, food: 0%, restaurant & labor: 7%, household items/clothes/electronics etc:14%.
>
RRSP but it works differently. Your RRSP contribution limit is 18% of your previous
year income subject to max $14,000 roughly. You can attribute part of it for your
spouse, the only legal mean of income-splitting.
>
>
Unlike the US, Mortgage interest is not deductable in Canada at all. If you've lived
in BC for more than a year and the house is your principal residence and the purchase
price is less than CAD250,000, you don't have to pay property transfer tax.
Thanks
Peter
Jun 13th 2001, 10:34 pm
#3
Guest
Posts: n/a
Peter
1. You mean to say that the equivalent of SSN in the US is payroll tax and the max it
is $2400 (I think in the US it is 6.2% for the first $80,00)
2. By income splitting you mean to say filing separately or filing jointly. I did
not understand this. And what does it mean transfering my assets to non-working
spuse. What if both of us work, or if she is not working for 3 months and then
starts working.
3. CAD$60K is high income, so do people not get more than that. I know one thing I am
prepared is that, I should stop comparing with the US incomes, as here I am on the
East coast and eanings are much higher.
4. After seeing your post, yes, I saw that dollar-to-dollar we do pay more in the US
5. The worst what I saw in your post is that mortgage interest is not deductible. Can
we have something called a home-office adn use that rent as deductible. I am in
the IT field and can easily work as a consultant
6. What are property transfer tax for the house, and how much is it as compared to
the cost of the house.
7. Where can I find on the web listings for apartments and townhomes to buy. If that
is the case it is better to buy a place instead of earning interest and paying
taxes on that. What do you think?
Sam
>
>
>
the
>
>
taxed
>
>
>
$2400++ in
>
>
>
>
feel
>
spouse
>
taxes
>
>
>
>
[usenetquote2]> >I am a prospective immigrant to Canada in the coming 6 months. I have[/usenetquote2]
stayed
[usenetquote2]> >in the US for the past 3 years, and now people are scaring me on high taxation in[/usenetquote2]
[usenetquote2]> >Canada.[/usenetquote2]
>
>
>
>
[usenetquote2]> >1. Question, here is what I pay in the US, and I would really appreciate[/usenetquote2]
if
[usenetquote2]> >anyone can give me a comparison to this in Canada: (I have taken unit as[/usenetquote2]
100
[usenetquote2]> >so let us not go into currency details)[/usenetquote2]
[usenetquote2]> >[/usenetquote2]
[usenetquote2]> >Gross Salary: 100.00[/usenetquote2]
[usenetquote2]> >[/usenetquote2]
[usenetquote2]> >Social Security: 6.20 Medicare: 1.45 State Tax (NJ) 5.00 (on income from $2K[/usenetquote2]
[usenetquote2]> >onwards) Federal Tax 28.00 (this is my slab the steps are now[/usenetquote2]
15%,
[usenetquote2]> >28%, 31%, 36% and so on..)[/usenetquote2]
[usenetquote2]> >[/usenetquote2]
[usenetquote2]> >My last year tax return showed a marginal tax (Tax divided by gross[/usenetquote2]
income)
[usenetquote2]> >showed Federal around 22% and State around 4% + 6.20 SSN and 1.45%[/usenetquote2]
[usenetquote2]> >Medicare..totaling around 33.65%[/usenetquote2]
>
>
>
[usenetquote2]> >2. Question, we have 6% State Sales tax on goods purchased like[/usenetquote2]
Electronics,
[usenetquote2]> >Gas etc. Only thing non taxable I have seen is food (maybe I do not see[/usenetquote2]
on
[usenetquote2]> >my bill) and clothes. But food is not that much of an expense, so I am[/usenetquote2]
not
[usenetquote2]> >worried and Electronics (I have built my household goods in the US that I plan to[/usenetquote2]
[usenetquote2]> >bring them with me). Also buying a 10% more expensive TV in Canada will never[/usenetquote2]
[usenetquote2]> >influence my decision to move to a better country.[/usenetquote2]
>
>
items/clothes/electronics
>
>
[usenetquote2]> >3. Question are there any comparable plans for Retirement like 401K in[/usenetquote2]
US.
>
>
>
part of
>
>
[usenetquote2]> >4. Question, if I buy a house as soon as I land, will my interest amount[/usenetquote2]
be
[usenetquote2]> >deductible as it is in the US on my monthly mortgage.[/usenetquote2]
>
>
you've
>
and
>
>
>
>
>
>
1. You mean to say that the equivalent of SSN in the US is payroll tax and the max it
is $2400 (I think in the US it is 6.2% for the first $80,00)
2. By income splitting you mean to say filing separately or filing jointly. I did
not understand this. And what does it mean transfering my assets to non-working
spuse. What if both of us work, or if she is not working for 3 months and then
starts working.
3. CAD$60K is high income, so do people not get more than that. I know one thing I am
prepared is that, I should stop comparing with the US incomes, as here I am on the
East coast and eanings are much higher.
4. After seeing your post, yes, I saw that dollar-to-dollar we do pay more in the US
5. The worst what I saw in your post is that mortgage interest is not deductible. Can
we have something called a home-office adn use that rent as deductible. I am in
the IT field and can easily work as a consultant
6. What are property transfer tax for the house, and how much is it as compared to
the cost of the house.
7. Where can I find on the web listings for apartments and townhomes to buy. If that
is the case it is better to buy a place instead of earning interest and paying
taxes on that. What do you think?
Sam
>
>
>
the
>
>
taxed
>
>
>
$2400++ in
>
>
>
>
feel
>
spouse
>
taxes
>
>
>
>
[usenetquote2]> >I am a prospective immigrant to Canada in the coming 6 months. I have[/usenetquote2]
stayed
[usenetquote2]> >in the US for the past 3 years, and now people are scaring me on high taxation in[/usenetquote2]
[usenetquote2]> >Canada.[/usenetquote2]
>
>
>
>
[usenetquote2]> >1. Question, here is what I pay in the US, and I would really appreciate[/usenetquote2]
if
[usenetquote2]> >anyone can give me a comparison to this in Canada: (I have taken unit as[/usenetquote2]
100
[usenetquote2]> >so let us not go into currency details)[/usenetquote2]
[usenetquote2]> >[/usenetquote2]
[usenetquote2]> >Gross Salary: 100.00[/usenetquote2]
[usenetquote2]> >[/usenetquote2]
[usenetquote2]> >Social Security: 6.20 Medicare: 1.45 State Tax (NJ) 5.00 (on income from $2K[/usenetquote2]
[usenetquote2]> >onwards) Federal Tax 28.00 (this is my slab the steps are now[/usenetquote2]
15%,
[usenetquote2]> >28%, 31%, 36% and so on..)[/usenetquote2]
[usenetquote2]> >[/usenetquote2]
[usenetquote2]> >My last year tax return showed a marginal tax (Tax divided by gross[/usenetquote2]
income)
[usenetquote2]> >showed Federal around 22% and State around 4% + 6.20 SSN and 1.45%[/usenetquote2]
[usenetquote2]> >Medicare..totaling around 33.65%[/usenetquote2]
>
>
>
[usenetquote2]> >2. Question, we have 6% State Sales tax on goods purchased like[/usenetquote2]
Electronics,
[usenetquote2]> >Gas etc. Only thing non taxable I have seen is food (maybe I do not see[/usenetquote2]
on
[usenetquote2]> >my bill) and clothes. But food is not that much of an expense, so I am[/usenetquote2]
not
[usenetquote2]> >worried and Electronics (I have built my household goods in the US that I plan to[/usenetquote2]
[usenetquote2]> >bring them with me). Also buying a 10% more expensive TV in Canada will never[/usenetquote2]
[usenetquote2]> >influence my decision to move to a better country.[/usenetquote2]
>
>
items/clothes/electronics
>
>
[usenetquote2]> >3. Question are there any comparable plans for Retirement like 401K in[/usenetquote2]
US.
>
>
>
part of
>
>
[usenetquote2]> >4. Question, if I buy a house as soon as I land, will my interest amount[/usenetquote2]
be
[usenetquote2]> >deductible as it is in the US on my monthly mortgage.[/usenetquote2]
>
>
you've
>
and
>
>
>
>
>
>
Jun 13th 2001, 11:51 pm
#4
Guest
Posts: n/a
Sam
>
>
For 2001, the CPP(Canadian Pension Plan) contribution is $1496.49 and the
EI(Employment Insurance) is $877.50. That's about $2400.
SSI in US is 6.2% for first $80k and 1.45% medicare for all income.
>
>
>
>
You can't file joint-return in Canada. Your earning has nothing to do with your
spouse's except when it comes to Child Tax Benefit & GST/HST rebates(ie when it is
their turn to give you money). The only difference in tax for a single person and a
married single income family earning the same income is the spousal credit which is
16% of CAD7000 ~= CAD1000(without contributing to spousal RRSP). Canadian income tax
has strict attribution rules. If you transfer you after tax properties(including
cash) to your lower-income/non-working spouse(income splitting to lower tax
brackets), the earning on those properties will still be attributed to you.
The attribution rules can't be applied to you before you land. So if you transfer
your assets to your spouse before landing, the assets belong to your spouse after
landing and since your spouse has no or lower income, earnings on these assets will
be applied to your spouse's lower tax brackets. That could translate into thousands
of dollars of saving.
>
>
>
Yes you should. Canadian living cost is lower than US.
>
>
>
>
>
Check with an accountant.
>
>
Property transfer tax: In BC, it is 1% upto $200k and 2% from $200k onward(I don't
know whether there's an upper limit).
Property tax: In BC, it is about $1800 for a $220,000 house a year and you get a
rebate of $400++ if it is your principal residence.
>
>
>
http://www.mls.ca BC: http://www.realtylink.org BC: http://www.aptrentals.net
There's no tax on renting. You need to do your own maths as you need to pay interest
for your mortgage as well.
Peter
>
>
For 2001, the CPP(Canadian Pension Plan) contribution is $1496.49 and the
EI(Employment Insurance) is $877.50. That's about $2400.
SSI in US is 6.2% for first $80k and 1.45% medicare for all income.
>
>
>
>
You can't file joint-return in Canada. Your earning has nothing to do with your
spouse's except when it comes to Child Tax Benefit & GST/HST rebates(ie when it is
their turn to give you money). The only difference in tax for a single person and a
married single income family earning the same income is the spousal credit which is
16% of CAD7000 ~= CAD1000(without contributing to spousal RRSP). Canadian income tax
has strict attribution rules. If you transfer you after tax properties(including
cash) to your lower-income/non-working spouse(income splitting to lower tax
brackets), the earning on those properties will still be attributed to you.
The attribution rules can't be applied to you before you land. So if you transfer
your assets to your spouse before landing, the assets belong to your spouse after
landing and since your spouse has no or lower income, earnings on these assets will
be applied to your spouse's lower tax brackets. That could translate into thousands
of dollars of saving.
>
>
>
Yes you should. Canadian living cost is lower than US.
>
>
>
>
>
Check with an accountant.
>
>
Property transfer tax: In BC, it is 1% upto $200k and 2% from $200k onward(I don't
know whether there's an upper limit).
Property tax: In BC, it is about $1800 for a $220,000 house a year and you get a
rebate of $400++ if it is your principal residence.
>
>
>
http://www.mls.ca BC: http://www.realtylink.org BC: http://www.aptrentals.net
There's no tax on renting. You need to do your own maths as you need to pay interest
for your mortgage as well.
Peter
Jun 14th 2001, 12:00 am
#5
Guest
Posts: n/a
Pete
Great discussion with you.
1. I understood now what you meant with transferring assets. Say I have USD $50K
before I land. If I transfer that assets to my spouse and she does not earn in
Canada, then we save a lot on the interest earning. (as compared to
me)
2. I knew we do not have to pay tax on renting, but I mean instead of keeping
money in the bank, wont it be a better idea to buy a place, and not rent..just
an idea...
3. A personal question: Are you in the IT industry and on your homepage, you said
that BC is becoming the Silicon Valley of CA..Any more information in
it...
What are my chances of getting a job - more than 8 yrs of IT experience out of which
5 yrs in the US, which included building high powered networks using routers and Sun
boxes, and Exchange 2000..
thx
Sam
PS: Any headhunters I should start looking for..
>
[usenetquote2]> >1. You mean to say that the equivalent of SSN in the US is payroll tax[/usenetquote2]
and
[usenetquote2]> >the max it is $2400 (I think in the US it is 6.2% for the first $80,00)[/usenetquote2]
>
>
>
>
>
>
[usenetquote2]> >2. By income splitting you mean to say filing separately or filing[/usenetquote2]
jointly.
[usenetquote2]> >I did not understand this. And what does it mean transfering my assets to[/usenetquote2]
[usenetquote2]> >non-working spuse. What if both of us work, or if she is not working for[/usenetquote2]
3
[usenetquote2]> >months and then starts working.[/usenetquote2]
>
>
your
>
when it
>
person
>
credit
>
>
after tax
>
>
still be
>
>
>
>
your
>
earnings on
>
could
>
>
[usenetquote2]> >3. CAD$60K is high income, so do people not get more than that. I know[/usenetquote2]
one
[usenetquote2]> >thing I am prepared is that, I should stop comparing with the US incomes,[/usenetquote2]
as
[usenetquote2]> >here I am on the East coast and eanings are much higher.[/usenetquote2]
>
>
>
[usenetquote2]> >4. After seeing your post, yes, I saw that dollar-to-dollar we do pay[/usenetquote2]
more
[usenetquote2]> >in the US[/usenetquote2]
[usenetquote2]> >[/usenetquote2]
[usenetquote2]> >5. The worst what I saw in your post is that mortgage interest is not deductible.[/usenetquote2]
[usenetquote2]> > Can we have something called a home-office adn use that rent[/usenetquote2]
as
[usenetquote2]> >deductible. I am in the IT field and can easily work as a consultant[/usenetquote2]
>
>
>
[usenetquote2]> >6. What are property transfer tax for the house, and how much is it as compared to[/usenetquote2]
[usenetquote2]> > the cost of the house.[/usenetquote2]
>
>
>
there's
>
>
>
>
of
>
>
[usenetquote2]> >7. Where can I find on the web listings for apartments and townhomes to[/usenetquote2]
buy.
[usenetquote2]> >If that is the case it is better to buy a place instead of earning[/usenetquote2]
interest
[usenetquote2]> >and paying taxes on that. What do you think?[/usenetquote2]
>
>
>
>
pay
>
>
>
Great discussion with you.
1. I understood now what you meant with transferring assets. Say I have USD $50K
before I land. If I transfer that assets to my spouse and she does not earn in
Canada, then we save a lot on the interest earning. (as compared to
me)
2. I knew we do not have to pay tax on renting, but I mean instead of keeping
money in the bank, wont it be a better idea to buy a place, and not rent..just
an idea...
3. A personal question: Are you in the IT industry and on your homepage, you said
that BC is becoming the Silicon Valley of CA..Any more information in
it...
What are my chances of getting a job - more than 8 yrs of IT experience out of which
5 yrs in the US, which included building high powered networks using routers and Sun
boxes, and Exchange 2000..
thx
Sam
PS: Any headhunters I should start looking for..
>
[usenetquote2]> >1. You mean to say that the equivalent of SSN in the US is payroll tax[/usenetquote2]
and
[usenetquote2]> >the max it is $2400 (I think in the US it is 6.2% for the first $80,00)[/usenetquote2]
>
>
>
>
>
>
[usenetquote2]> >2. By income splitting you mean to say filing separately or filing[/usenetquote2]
jointly.
[usenetquote2]> >I did not understand this. And what does it mean transfering my assets to[/usenetquote2]
[usenetquote2]> >non-working spuse. What if both of us work, or if she is not working for[/usenetquote2]
3
[usenetquote2]> >months and then starts working.[/usenetquote2]
>
>
your
>
when it
>
person
>
credit
>
>
after tax
>
>
still be
>
>
>
>
your
>
earnings on
>
could
>
>
[usenetquote2]> >3. CAD$60K is high income, so do people not get more than that. I know[/usenetquote2]
one
[usenetquote2]> >thing I am prepared is that, I should stop comparing with the US incomes,[/usenetquote2]
as
[usenetquote2]> >here I am on the East coast and eanings are much higher.[/usenetquote2]
>
>
>
[usenetquote2]> >4. After seeing your post, yes, I saw that dollar-to-dollar we do pay[/usenetquote2]
more
[usenetquote2]> >in the US[/usenetquote2]
[usenetquote2]> >[/usenetquote2]
[usenetquote2]> >5. The worst what I saw in your post is that mortgage interest is not deductible.[/usenetquote2]
[usenetquote2]> > Can we have something called a home-office adn use that rent[/usenetquote2]
as
[usenetquote2]> >deductible. I am in the IT field and can easily work as a consultant[/usenetquote2]
>
>
>
[usenetquote2]> >6. What are property transfer tax for the house, and how much is it as compared to[/usenetquote2]
[usenetquote2]> > the cost of the house.[/usenetquote2]
>
>
>
there's
>
>
>
>
of
>
>
[usenetquote2]> >7. Where can I find on the web listings for apartments and townhomes to[/usenetquote2]
buy.
[usenetquote2]> >If that is the case it is better to buy a place instead of earning[/usenetquote2]
interest
[usenetquote2]> >and paying taxes on that. What do you think?[/usenetquote2]
>
>
>
>
pay
>
>
>
Jun 14th 2001, 6:13 am
#6
Guest
Posts: n/a
3. CAD$60K is high income, so do people not get more than that. I know one
>
>
I don't know what your field is but one can get more than that. On the other hand in
Chicago, I have found the salary scale and cost of living to be similar to Vancouver
and Toronto (maybe a bit higher on both counts; US$950 for an apartment that would go
for C$900 in Toronto).
>
>
That depends, taxes vary wildly across the US but mildly across Canada. In 2001, all
ten provinces are in the range of the 10- 12 highest taxed states. A couple of years
ago, it was only Alberta and Ontario; most of the 90's, it was only Alberta.
>
Steve Forbes, who campaigned twice for the Republican nomination on a flat tax
platform, likes to point out that the mortgage interest deduction inflates US
property values. In Canada, you pay lower interest rates on lower noninflated
property values and generally pay lower property tax rates - at least versus the
highest taxed states.
Add to that, Canadian misconceptions that mortgage interest deduction is a line item
deduction rather than an itemized deduction that replaces your standard deduction;
there is no Santa Claus, you cannot have both. Canadians think that there is more to
it, when your real benefit is what is above your standard deduction. Factor in that
double and triple will become subject to the Alternative Minimum Tax due to the
recent US federal tax cuts (and I won't even mention the likelihood of downloading
that raises state and local taxes; hello, Chicago city income tax like in New York
City!) that negates any mortgage interest deduction you can no longer claim.
--
Gary L. Dare [email protected]
"Je me souviens"
>
>
I don't know what your field is but one can get more than that. On the other hand in
Chicago, I have found the salary scale and cost of living to be similar to Vancouver
and Toronto (maybe a bit higher on both counts; US$950 for an apartment that would go
for C$900 in Toronto).
>
>
That depends, taxes vary wildly across the US but mildly across Canada. In 2001, all
ten provinces are in the range of the 10- 12 highest taxed states. A couple of years
ago, it was only Alberta and Ontario; most of the 90's, it was only Alberta.
>
Steve Forbes, who campaigned twice for the Republican nomination on a flat tax
platform, likes to point out that the mortgage interest deduction inflates US
property values. In Canada, you pay lower interest rates on lower noninflated
property values and generally pay lower property tax rates - at least versus the
highest taxed states.
Add to that, Canadian misconceptions that mortgage interest deduction is a line item
deduction rather than an itemized deduction that replaces your standard deduction;
there is no Santa Claus, you cannot have both. Canadians think that there is more to
it, when your real benefit is what is above your standard deduction. Factor in that
double and triple will become subject to the Alternative Minimum Tax due to the
recent US federal tax cuts (and I won't even mention the likelihood of downloading
that raises state and local taxes; hello, Chicago city income tax like in New York
City!) that negates any mortgage interest deduction you can no longer claim.
--
Gary L. Dare [email protected]
"Je me souviens"
Jun 14th 2001, 6:20 am
#7
Guest
Posts: n/a
Gross Salary: 100.00
>
>
>
Now to be 10%, 15%, 27.5%, 30.5%, 35.5% and 39.1% in the US.
The top federal bracket in Canada is 29% for $100,000+. Provinces now have separate
tax scales rather than add on to the federal tax liability. For Alberta, Canada's
lowest-taxed province, check out:
http://www.treas.gov.ab.ca/calc-script/tax_calc.html
That site figures your federal income and payroll tax and Alberta provincial income
tax. Canadian payroll tax is 6%+ on $39,000 income versus $80,400 for Social Security
in the US, as above (and Medicare on all earned income).
>
You have a 8.25% sales tax next door in New York State and in Chicago, the sales tax
downtown hits 10%. Sales tax in Canada can vary as a result of 7% federal GST plus
provincial sales tax that can vary from 0 (Alberta) to 8-9% in the Maritimes.
Ontario, it's 15% and Manitoba, 14%.
--
Gary L. Dare [email protected]
"Je me souviens"
>
>
>
Now to be 10%, 15%, 27.5%, 30.5%, 35.5% and 39.1% in the US.
The top federal bracket in Canada is 29% for $100,000+. Provinces now have separate
tax scales rather than add on to the federal tax liability. For Alberta, Canada's
lowest-taxed province, check out:
http://www.treas.gov.ab.ca/calc-script/tax_calc.html
That site figures your federal income and payroll tax and Alberta provincial income
tax. Canadian payroll tax is 6%+ on $39,000 income versus $80,400 for Social Security
in the US, as above (and Medicare on all earned income).
>
You have a 8.25% sales tax next door in New York State and in Chicago, the sales tax
downtown hits 10%. Sales tax in Canada can vary as a result of 7% federal GST plus
provincial sales tax that can vary from 0 (Alberta) to 8-9% in the Maritimes.
Ontario, it's 15% and Manitoba, 14%.
--
Gary L. Dare [email protected]
"Je me souviens"
Jun 14th 2001, 6:24 am
#8
Guest
Posts: n/a
>
>
>
>
Your expectations should be geared towards the US north-central midwest (e.g.,
Minnesota and the Minneapolis-St. Paul twin cities) rather than California or the
Northeast with $2000 rentals. Even Vancouver and Toronto, Canada's most expensive
cities, are on the level of Chicago, the most expensive US city in the midwest and
between coasts. Compare Vancouver and Toronto rents with Chicago at the Chicago
Reader (analogous to NOW and eYe On Toronto, or Georgia Strait) and you'll see
what I mean:
http://www.chireader.com/
--
Gary L. Dare [email protected]
"Je me souviens"
>
>
>
Your expectations should be geared towards the US north-central midwest (e.g.,
Minnesota and the Minneapolis-St. Paul twin cities) rather than California or the
Northeast with $2000 rentals. Even Vancouver and Toronto, Canada's most expensive
cities, are on the level of Chicago, the most expensive US city in the midwest and
between coasts. Compare Vancouver and Toronto rents with Chicago at the Chicago
Reader (analogous to NOW and eYe On Toronto, or Georgia Strait) and you'll see
what I mean:
http://www.chireader.com/
--
Gary L. Dare [email protected]
"Je me souviens"
Jun 14th 2001, 7:07 am
#9
Guest
Posts: n/a
Sam
>
>
>
Yes. That's what the BC government said half a years ago. Now with the economic
slowdown, high tech industry is severely impacted.
>
>
>
It is easy half a year ago. Now I don't know. When companies restart their
postponed/canceled projects, there should be lots of IT jobs. Let's hope the economic
slowdown will get over soon.
Peter
>
>
>
Yes. That's what the BC government said half a years ago. Now with the economic
slowdown, high tech industry is severely impacted.
>
>
>
It is easy half a year ago. Now I don't know. When companies restart their
postponed/canceled projects, there should be lots of IT jobs. Let's hope the economic
slowdown will get over soon.
Peter
Jun 15th 2001, 3:04 pm
#10
Guest
Posts: n/a
On 14 Jun 2001 06:20:18 GMT, Gary L. Dare wrote:
} The top federal bracket in Canada is 29% for $100,000+. } Provinces now have
separate tax scales rather than add } on to the federal tax liability. For Alberta,
Canada's } lowest-taxed province, check out: } }
http://www.treas.gov.ab.ca/calc-script/tax_calc.html
And for Ontario?
Have fun, Alex.
--
My email address is intentionally mangled to foil spambots. Please remove the
"---filter---" from the address for replying. Sorry for the inconvenience.
} The top federal bracket in Canada is 29% for $100,000+. } Provinces now have
separate tax scales rather than add } on to the federal tax liability. For Alberta,
Canada's } lowest-taxed province, check out: } }
http://www.treas.gov.ab.ca/calc-script/tax_calc.html
And for Ontario?
Have fun, Alex.
--
My email address is intentionally mangled to foil spambots. Please remove the
"---filter---" from the address for replying. Sorry for the inconvenience.
Jun 16th 2001, 5:39 am
#11
Guest
Posts: n/a
} http://www.treas.gov.ab.ca/calc-script/tax_calc.html
>
Add 10-15% progressively to the Alberta provincial rate. The additional 5% accounts
for niggling surtaxes that will stick around for a couple of years more. )-;
--
Gary L. Dare [email protected]
"Je me souviens"
>
Add 10-15% progressively to the Alberta provincial rate. The additional 5% accounts
for niggling surtaxes that will stick around for a couple of years more. )-;
--
Gary L. Dare [email protected]
"Je me souviens"
Jun 17th 2001, 12:06 am
#12
Guest
Posts: n/a
Hi, I have really enjoyed this thread and have found it most informative - thanks
everyone. There's one point that I still fail to understand (or at least how it
affects my husband and I). A point was made that there are no joint tax returns in
Canada. So what do a couple do that only have joint income? My husband and I are
retired (very, very early) and will be landing in Canada later this year. All his
family live in Vancouver and we have owned property on Vancouver and Salt Spring
Islands for a few years now. We will not be working, either in Canada or in the US
(although we may open a hobby B&B - even that will be joint). All our income will
be generated from Rental Properties and Investments and everything is in joint
names. All the 1099's and Income statements are in joint names so how on earth do
we file? Anyone?
everyone. There's one point that I still fail to understand (or at least how it
affects my husband and I). A point was made that there are no joint tax returns in
Canada. So what do a couple do that only have joint income? My husband and I are
retired (very, very early) and will be landing in Canada later this year. All his
family live in Vancouver and we have owned property on Vancouver and Salt Spring
Islands for a few years now. We will not be working, either in Canada or in the US
(although we may open a hobby B&B - even that will be joint). All our income will
be generated from Rental Properties and Investments and everything is in joint
names. All the 1099's and Income statements are in joint names so how on earth do
we file? Anyone?
