Canadians pay more taxes compared to those in the United States because of this country's more extensive social services, such as universal healthcare. Research also suggests that Canadians will face a higher tax burden in the future because of the current federal government's program spending.
Canada ranked 20th¹ out of 38 OECD countries in terms of the tax-to-GDP ratio in 2023. In 2023, Canada had a tax-to- GDP ratio of 34.8% compared with the OECD average of 33.9%. In 2022, Canada was ranked 22nd out of the 38 OECD countries in terms of the tax-to-GDP ratio. 1.
Property tax in Canada is often 80% less than much of the US. (0.28% in Vancouver vs 1.3% in Bay Area, CA vs 2.2% in Austin, TX) 2. Interest on $750k is tax deducible in the US, however with low interest rates, many people just take the standard deduction anyway.
If you make $100,000 a year living in the region of Ontario, Canada, you will be taxed $29,986. That means that your net pay will be $70,014 per year, or $5,835 per month. Your average tax rate is 30.0% and your marginal tax rate is 43.2%.
Which country has the highest income tax rate in the world? While many countries have high income tax rates, Ivory Coast currently holds the record for the highest top marginal income tax rate in the world, at a staggering 60%.
The average salary in Toronto is $62,050, which is 14% higher than the Canadian average salary of $54,450. A person making $100,000 a year in Toronto makes 61.2% more than the average working person in Toronto and will take home about $73,508.
On average, it's more expensive to live in the US than to live in Canada. But median incomes are higher in the US than up North and the cost of living varies widely between different regions of each country — there's a lot more to this cost of living debate than you might think.
Among the countries with the lowest tax rates in the world are Malta, Cyprus, Andorra, Montenegro and Singapore. Aside from zero income tax, in Antigua and Barbuda, individuals are also free from paying taxes on wealth, capital gains, and inheritance.
In addition to federal income tax, an individual who resides in, or has earned income in, any province or territory is subject to provincial or territorial income tax. Except in Quebec, provincial and territorial taxes are calculated on the federal return and collected by the federal government.
Canada ranks 17th overall on the 2024 International Tax Competitiveness Index, two places worse than in 2023.
Canada is a vibrant country, economically and culturally. It has low crime rates, low poverty rates and world-class, free primary and secondary education. It has world-class universities. It has clean air and wide-open space.
Quebec has the highest income tax rate out of all the provinces and territories. Quebec is Canada's second most populated province, with a population of about 8.5 million, and French is the predominantly spoken language.
The United States has a higher average salary compared to Canada, but the difference is more substantial as it may initially appear. Two North American powerhouses, the United States and Canada boast robust economies and high standards of living, though the citizens in both nations often earn vastly different amounts.
Contrary to the Trudeau government's ill-defined rhetoric, higher-income families pay the majority of taxes in Canada and are the only ones who pay disproportionately more compared to their share of income.
Is Canada Expensive? The simple answer is yes—Canada has living costs that are similar to the USA. Some things, like gas, cost more in Canada. Other things, like rent, tend to be lower, especially compared to major cities like New York or San Francisco.
The IRS taxes the wealthiest Americans at 37% on their top dollars as of 2024. The top federal tax rate in Canada is 33%. Wealthy Americans have access to many tax deductions that Canada's alternative minimum tax doesn't allow. Some U.S. states levy no income tax, but all Canadian provinces and territories do so.
The highest personal income tax rates in 2021-23 were found in Ivory Coast (60%), Finland (56.95%), and Denmark (56.00%). Bhutan has the highest sales tax at 50%, followed by Hungary (27%), with Croatia, Denmark, Norway, and Sweden tied at 25%.
In 2021, taxes at all levels of US government represented 27 percent of gross domestic product (GDP), compared with a weighted average of 34 percent for the other 37 member countries of the Organisation for Economic Co-operation and Development (OECD).
Housing, transportation, and food costs can be expensive. Weather: Canada has long and harsh winters, with snow and ice covering much of the country for several months each year. This can be challenging for those who are not accustomed to the cold.
In Canada's health care system, some services are free at the point of service while others require the patient to pay a fee. Roughly 70% of health care spending in Canada is covered by the government, paid for with tax dollars. (Some of those services may still require some payment from the patient.)
Average Salary in Canada 2024: Based on Stats Canada, the average salary in Canada is $72,800 per year or $34.85 per hour average across all industries. Provincial Average Salary: The average salary varies by province, with the highest average salary in Alberta and the lowest in the Maritime provinces.
Comfortable Living: For a more comfortable life with room for savings, occasional extras, and potential childcare costs, aim for a combined annual pre-tax household income of at least $95,000 (increased from $90,000 in 2023). This allows for a more balanced lifestyle in most Canadian locations.
A salary of $110,000 per year means that you would be taking home about $80,258 per year after taxes, or $6,688 per month to pay for things like housing, transportation, groceries, and entertainment. The average household income in Toronto is $121,200.