Change in TC if moving from US to Canada

Amazon
Fix1t

Go to company page Amazon

Fix1t
Sep 16, 2020 33 Comments

I am L6 Solutions Architect at AWS (TC: 300k) and currently deciding between staying in the US vs moving to Canada.

Primary reason for moving: I am on H1B and thought Canada PR can provide me some stability.

What I want to access are the financial implications of moving to Canada(Toronto), and was wondering if I can get an approximate idea around what the salaries are Iike in Canada.

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TOP 33 Comments
  • Medtronic / Manufacturing
    tuckfrum

    Go to company page Medtronic Manufacturing

    tuckfrum
    How can someone even think about moving to a shit**** Like Canada with their 8 months of winter and their socialism ๐Ÿคฎwith 50% taxes is something that boggles my mind everyday
    Sep 16, 2020 9
    • Nutanix
      ooJo51

      Go to company page Nutanix

      ooJo51
      > current date for EB2 for Indian is 2009 so it is only 11 years not 100 years!

      Just because it took 11 years for someone who applied in 2009 doesn't mean that it will take the same amount of time for someone applying in 2020. 100 years is more like it unless the immigration policies change
      Sep 16, 2020
    • This mess is because of WITCH, cancel all WITCH h1b and there is no such backlog!!!
      Sep 16, 2020
  • Your cash bonus and RSU remain the same. Expect base to be adjusted in line to make your TC about 50-60% of what you make in US
    Sep 16, 2020 10
    • As Nokia said, at 150k the average tax rate is roughly 33%, not 44%... apparently you still don't quite understand how taxes work. The link you posted literally tells you the take home would be roughly 100k in Ontario if you're making 150k. Looks like you're the one that can't read lmao
      Sep 16, 2020
    • Amazon / Eng
      ddttddttdd

      Go to company page Amazon Eng

      ddttddttdd
      Wow, I'm amazed how dumb some people are when it comes to taxes!
      Sep 16, 2020
  • Amazon
    Fix1t

    Go to company page Amazon

    Fix1t
    OP
    Update: Thank you everyone for their inputs. I took a long term view of 15 years (if I move to Canada) and calculated my savings based on:
    1. Amount of money lost due to tax purposes
    2. Money lost due to difference in currency evaluation
    3. Money lost due to package reconciliation due to the move from US to Canada
    4. Money lost due to (very) costly drivers insurance in Canada ($600 in Canada vs $100 per month in USA)
    5. Money saved in rent
    6. Money saved on general cost of living

    Considering all the factors, in 15 years, I would save 60% less in Canada.

    So, based on this I have decided to stay in US on H1B for as long as possible and then move back to India.
    Oct 11, 2020 1
    • Oracle
      ByoE85

      Go to company page Oracle

      ByoE85
      There are few other things to consider when moving to Canada, which for some reason people on Blind rarely mention.

      1) Depending on where you are living in Canada and where you are in the US, you could pay substantially less in property taxes in Canada. In Ontario people tend to pay 3000-4500 annually in property taxes. If you are renting it's moot though.

      2) Your taxes in Canada cover health care. No spending on HSA, premiums, deductibles, etc.

      3) The Tax-free savings account (TFSA) in Canada is much more powerful than anything you have available in the US. This can make a big difference in the long term. Basically you can invest some amount of money each year that grows tax free and can be withdrawn at any time. Roth would be a similar type account in US but it has an early withdrawal penalty.

      4) RRSP (similar to 401k) contributions tend to be more generous in Canada. E.g. In the US it is quite common that the company matches 50% of what you contribute. In Canada it tends to be 100%. As usual, that won't be the case with all companies, but it's what I've observed.

      The first 2 can be worth significant amount of money. The third can be worth a huge amount depending on how you invest savings.

      5) There's a lot of misinformation w.r.t Canadian income taxes on Blind. You have to do the math of where you live in US and where you want to be in Canada, and pull up Federal and State/Provincial tax tables. Keep in mind, Canada doesn't tax being married differently than single. You will find that often times, you will not have a significant difference in income taxes, especially compared to California.

      You would still save a lot more in the US but likely less than 60%.
      Oct 18, 2020
  • Generally speaking, 100k is still seen as a great base salary in Canada. Taking the dollar into account, my TC in Toronto was a third of what I make now.

    Probably not as bad for the big companies like Shopify and Amazon but I know a friend who worked in MS vancouver and it was still a big drop off from the US comp.
    Sep 16, 2020 2
    • Amazon
      mxxw64

      Go to company page Amazon

      mxxw64
      Damn
      Sep 16, 2020
    • Yup, it's a massive difference. US tech companies are unique in the crazy high salaries they offer.

      To make it worse, the whole GTA area has become expensive af in the last five years or so but the wages have stagnated. And taxes are higher, at least compared to WA. That's why so many of the top CS grads end up moving to the US.
      Sep 16, 2020
  • Nokia / Mgmt
    romai

    Go to company page Nokia Mgmt

    romai
    OP..I know one SA who is in Ottawa Canada got hired for L4 , 205k CAD tc.
    Sep 16, 2020 1