Salaries in Canada
- Thread starter njdude26
- Start date
ERP_Programmer
Registered Users (C)
njdude26 said:
Probably 90CAD give or take 5k. But your tax rate will be around 36% (26% Fed + 11% Ontario) Plus social programs which amount to a few more percentage points. Just count on like 40-45% tax. Oh ya they have sales tax on everything of like 14%..
The reason why i posted this q was that i have a lot of people say salaries are low in canada and that is the reason why they want to stay in US !
for atleast 1+ years it is ok for me as i will be working for the same US company at the same USD salary. But once I lose this job then comes the problem !
for atleast 1+ years it is ok for me as i will be working for the same US company at the same USD salary. But once I lose this job then comes the problem !
same position
Actually i'm in same shoes as yours [software engineer]. I got an offer in toronto and they matched my US salary. Problem was that when I did the calculations, 90k canadian would come down to like 80k USD. thats one thing.
the other thing is, if you make 90k in us,your bi-weekly is like $2600 or so.
In canada, your bi-weekly for 90k would be like $2100. I asked the company's HR to give me net income before going there [married with one or more kids]....so when you convert $2100 to US, you get $1880. I'm 95% sure of these numbers.
So i decided to stay in US for now. Best would be to get a job at a US company and work from home [in canada
]
-Shah Rukh Khan
Actually i'm in same shoes as yours [software engineer]. I got an offer in toronto and they matched my US salary. Problem was that when I did the calculations, 90k canadian would come down to like 80k USD. thats one thing.
the other thing is, if you make 90k in us,your bi-weekly is like $2600 or so.
In canada, your bi-weekly for 90k would be like $2100. I asked the company's HR to give me net income before going there [married with one or more kids]....so when you convert $2100 to US, you get $1880. I'm 95% sure of these numbers.
So i decided to stay in US for now. Best would be to get a job at a US company and work from home [in canada
]-Shah Rukh Khan
hmm
Nice calculations. But yes i will be working for the same company here in US and getting paid in USD. But still i will end up paying lot more taxes there. correct ?
bash123 said:Actually i'm in same shoes as yours [software engineer]. I got an offer in toronto and they matched my US salary. Problem was that when I did the calculations, 90k canadian would come down to like 80k USD. thats one thing.
the other thing is, if you make 90k in us,your bi-weekly is like $2600 or so.
In canada, your bi-weekly for 90k would be like $2100. I asked the company's HR to give me net income before going there [married with one or more kids]....so when you convert $2100 to US, you get $1880. I'm 95% sure of these numbers.
So i decided to stay in US for now. Best would be to get a job at a US company and work from home [in canada
-Shah Rukh Khan
Nice calculations. But yes i will be working for the same company here in US and getting paid in USD. But still i will end up paying lot more taxes there. correct ?
texancanadian
Registered Users (C)
bash 123,
Yes Canadian taxes are higher. But if you had a US Green card you wouldnt want to go anyway, so you need to choose between getting a higher salary v/s gaining time towards Canadian Citizenship or maintaining PR.
Remember even if you work from home for US company and get paid in USD you must pay taxes in Canada so you end up being equal there.
Yes Canadian taxes are higher. But if you had a US Green card you wouldnt want to go anyway, so you need to choose between getting a higher salary v/s gaining time towards Canadian Citizenship or maintaining PR.
Remember even if you work from home for US company and get paid in USD you must pay taxes in Canada so you end up being equal there.
texancanadian
Registered Users (C)
You pay both US and Canadian taxes but you get credit for what you paid in US while filing Canadian taxes.
ex
You make 50 K US sitting in Canada. You first file US taxes and say pay 10 K in taxes. Then you file canadian taxes and say that comes out to 15 K. However you can claim credit for the 10K you paid to US so only pay 5 K to Canada.
There are some additional details but thats the way it basically works.
ex
You make 50 K US sitting in Canada. You first file US taxes and say pay 10 K in taxes. Then you file canadian taxes and say that comes out to 15 K. However you can claim credit for the 10K you paid to US so only pay 5 K to Canada.
There are some additional details but thats the way it basically works.
texancanadian said:
Confirm with the tax consultant. If you moved to Canada permanently but if your US employer keeps you on his payroll, (u work for a US employer from your home in Canada) you will not need to pay US taxes. (Assuming you do not have a GC or US citizenship). I think it is similar to someone working from India for a US employer (outsourcing). Why will that person pay US taxes? Again, this is my thinking - confirm with a US tax consultant. I will try to post the reliable sourced info, if I get it.
texancanadian said:
See IRS publication 519. If you move to Canada, you will be a US non resident alien. A NR alien is subject to the US tax only if the source of the income is US. See table 2.1 that describes how to determine what the source of income is.
(http://www.irs.gov/publications/p519/ch02.html#d0e1847)
1) Salary/wages - the source of income is "where services are performed". In your case, it is Canada, therefore, it is not a US source income and is not taxable by the IRS.
Hope this helps.
---Note: I am not a professional. If in doubt, seek professional advice. ---
texancanadian
Registered Users (C)
Bigboy,
Thanks for the clarification. You are most likely correct. My thought was more along the lines of living in Canada but working in US (Windsor/Detroit).
Thanks
Thanks for the clarification. You are most likely correct. My thought was more along the lines of living in Canada but working in US (Windsor/Detroit).
Thanks