Are taxes cheaper in USA or Canada?

Question

Look at these to links because as far as I can tell if someone is making $400,000 it would be cheaper in Canada.

http://www.cra-arc.gc.ca/tax/individuals/faq/taxrates-e.htmlc

http://www.americanconsumernews.com/2008/01/2008-federal-income-tax-rates.html

Answer 1

i would say USA because in canda it's really expensive sometimes

Answer 2

Usually the USA but it can be complicated to tell how much.   Unfortunately it is not as simple as looking at the marginal tax rates.  In the US's favour are the ability to joint file and deduct certain mortgage interest, neither of which you can do in Canada and both of which can save tax.

While not an income tax, also in the US favour is our generally higher level of consumption taxes - 13% GST+PST on most items in Ontario, as litlle as 0% in some states.  I understand US employment taxes - FICA etc. - are higher than Canada but don't know a lot about them.  Then there are all the other cost factors  you should take into account - "free" health care in Canada vs. whatever your US health insurance costs you, our generally higher cost of living (recent survey suggests US prices for goods and services are generally about 12% lower than Canada) etc. etc.

Typically your state taxes are deductible for federal tax purposes in the US so the total burden in NY above may be overstated.

Answer 3

Without question taxes are lower in the USA.  If you go further down your table it shows for amount and rates for the provinces.

Take as an Example Ontario on 400,000 of taxable income income taxes would be 106,621.60 Federal and 42,075.36 Ontario Tax Total 148,697.  

Now on the US tables the total tax would be 118,596.00.  To this you would need to add you State taxes (note some states this rate is zero example Florida) New Your State would be 24,700 Total 143,296.70 Still cheaper than Ontario.

Also you need to see from 4000,000 of salary how much would be taxable income in Canada verses how much is taxable in the USA, and then start calculating the income taxes.

Answer 4

Canada.