US taxes
#1
Forum Regular
Thread Starter
Joined: Aug 2002
Posts: 74
US taxes
I don't know if this is the right forum to ask....but are US income taxes higher or lower than Canadian income taxes?
#2
Guest
Posts: n/a
Re: US taxes
I believe they are lower than Canadian income taxes, but it also depends on
your annual salary.
The lowest US Income tax rate is 15% for incomes below 43,850.
The highest rate is 39.6% for incomes above 288,350.
This information was found on the website:
www.taxplanet.com
I had a Canadian girlfriend once whose brother declined a pay-raise because
it would have put him in the 50% tax bracket. The raise was to $60,000
Canadian. This may or may not be accurate.
"Jay S" wrote in message
news:419376.1032406079@britishexpats-
.com...
> I don't know if this is the right forum to ask....but are US income
> taxes higher or lower than Canadian income taxes?
> --
> Posted via http://britishexpats.com
your annual salary.
The lowest US Income tax rate is 15% for incomes below 43,850.
The highest rate is 39.6% for incomes above 288,350.
This information was found on the website:
www.taxplanet.com
I had a Canadian girlfriend once whose brother declined a pay-raise because
it would have put him in the 50% tax bracket. The raise was to $60,000
Canadian. This may or may not be accurate.
"Jay S" wrote in message
news:419376.1032406079@britishexpats-
.com...
> I don't know if this is the right forum to ask....but are US income
> taxes higher or lower than Canadian income taxes?
> --
> Posted via http://britishexpats.com
#3
Guest
Posts: n/a
Re: US taxes
steve wrote:
> I believe they are lower than Canadian income taxes, but it also depends on
> your annual salary.
> The lowest US Income tax rate is 15% for incomes below 43,850.
> The highest rate is 39.6% for incomes above 288,350.
> This information was found on the website:
> www.taxplanet.com
You might try the INS website which is more up to date.
Tax rates have been cut.
In any case, the actual lowest rate would be a negative number due to
EIC.
And, if not qualfiied for EIC, there are still levels at which you pay 0
percent. The lowest regular percentage is now 10 percent, the highest is
now 38.6 percent.
This source has a convenient chart based on income and filing status.
http://www.bankrate.com/brm-
/itax/2002taxrates.asp
> I believe they are lower than Canadian income taxes, but it also depends on
> your annual salary.
> The lowest US Income tax rate is 15% for incomes below 43,850.
> The highest rate is 39.6% for incomes above 288,350.
> This information was found on the website:
> www.taxplanet.com
You might try the INS website which is more up to date.
Tax rates have been cut.
In any case, the actual lowest rate would be a negative number due to
EIC.
And, if not qualfiied for EIC, there are still levels at which you pay 0
percent. The lowest regular percentage is now 10 percent, the highest is
now 38.6 percent.
This source has a convenient chart based on income and filing status.
http://www.bankrate.com/brm-
/itax/2002taxrates.asp
#4
Guest
Posts: n/a
Re: US taxes
"steve" wrote in message news:...
> I had a Canadian girlfriend once whose brother declined a pay-raise because
> it would have put him in the 50% tax bracket. The raise was to $60,000
> Canadian. This may or may not be accurate.
Not quite. The tax rates are 17%, 26% (I think - this one has been
changed recently) and 29%. The highest level kicks in at around
$59,000. Most provinces calculate their taxes as a percentage of the
federal tax rate and then let the federal government provide a
centralized tax collection service. The highest effective (federal +
provincial) tax rate varies by province and is probably in the 40-45%
range.
Phil
> I had a Canadian girlfriend once whose brother declined a pay-raise because
> it would have put him in the 50% tax bracket. The raise was to $60,000
> Canadian. This may or may not be accurate.
Not quite. The tax rates are 17%, 26% (I think - this one has been
changed recently) and 29%. The highest level kicks in at around
$59,000. Most provinces calculate their taxes as a percentage of the
federal tax rate and then let the federal government provide a
centralized tax collection service. The highest effective (federal +
provincial) tax rate varies by province and is probably in the 40-45%
range.
Phil
#5
Guest
Posts: n/a
Re: US taxes
"steve" wrote:
> I had a Canadian girlfriend once whose brother declined a pay-raise
because
> it would have put him in the 50% tax bracket. The raise was to $60,000
> Canadian. This may or may not be accurate.
Usually people do this out of ignorance (because they falsely assume the
higher bracket covers all of their income instead of just the amount above
the bracket level) or because it prevents them taking some form of tax break
because their income had crossed a threshold.
Andy.
P.S. Perhaps Canada really does tax you the highest rate across your entire
income but I doubt it.
--
I'm not really here - it's just your warped imagination.
> I had a Canadian girlfriend once whose brother declined a pay-raise
because
> it would have put him in the 50% tax bracket. The raise was to $60,000
> Canadian. This may or may not be accurate.
Usually people do this out of ignorance (because they falsely assume the
higher bracket covers all of their income instead of just the amount above
the bracket level) or because it prevents them taking some form of tax break
because their income had crossed a threshold.
Andy.
P.S. Perhaps Canada really does tax you the highest rate across your entire
income but I doubt it.
--
I'm not really here - it's just your warped imagination.
#6
Guest
Posts: n/a
Re: US taxes
For interest sake, my sister makes over $60,000 a year. She was taxed
at 50%. She is Canadian. My USC husband makes close to $70,000, he
was taxed at 32% last year.
"[email protected]" wrote in message news:...
> steve wrote:
> >
> > I believe they are lower than Canadian income taxes, but it also depends on
> > your annual salary.
> >
> > The lowest US Income tax rate is 15% for incomes below 43,850.
> > The highest rate is 39.6% for incomes above 288,350.
> >
> > This information was found on the website:
> > www.taxplanet.com
> You might try the INS website which is more up to date.
> Tax rates have been cut.
> In any case, the actual lowest rate would be a negative number due to
> EIC.
> And, if not qualfiied for EIC, there are still levels at which you pay 0
> percent. The lowest regular percentage is now 10 percent, the highest is
> now 38.6 percent.
> This source has a convenient chart based on income and filing status.
> http://www.bankrate.com/b-
> rm/itax/2002taxrates.asp
at 50%. She is Canadian. My USC husband makes close to $70,000, he
was taxed at 32% last year.
"[email protected]" wrote in message news:...
> steve wrote:
> >
> > I believe they are lower than Canadian income taxes, but it also depends on
> > your annual salary.
> >
> > The lowest US Income tax rate is 15% for incomes below 43,850.
> > The highest rate is 39.6% for incomes above 288,350.
> >
> > This information was found on the website:
> > www.taxplanet.com
> You might try the INS website which is more up to date.
> Tax rates have been cut.
> In any case, the actual lowest rate would be a negative number due to
> EIC.
> And, if not qualfiied for EIC, there are still levels at which you pay 0
> percent. The lowest regular percentage is now 10 percent, the highest is
> now 38.6 percent.
> This source has a convenient chart based on income and filing status.
> http://www.bankrate.com/b-
> rm/itax/2002taxrates.asp
#7
Guest
Posts: n/a
Re: US taxes
Margaret wrote:
> For interest sake, my sister makes over $60,000 a year. She was taxed
> at 50%. She is Canadian. My USC husband makes close to $70,000, he
> was taxed at 32% last year.
But... not all of his income was taxed at 32 percent.
Or, did he really pay $21400 in Federal tax after adjusting for refunds
and payments?
That poor Canadian that turned down didn't seem to realize, the high
rate only applies to the income that falls over the bracket, not for all
of the income.
> For interest sake, my sister makes over $60,000 a year. She was taxed
> at 50%. She is Canadian. My USC husband makes close to $70,000, he
> was taxed at 32% last year.
But... not all of his income was taxed at 32 percent.
Or, did he really pay $21400 in Federal tax after adjusting for refunds
and payments?
That poor Canadian that turned down didn't seem to realize, the high
rate only applies to the income that falls over the bracket, not for all
of the income.