After maxing out my RRSP and FHSA, and making over $10K in donations, and claiming WFH expenses down to the last pencil sharpener… my effective (average) tax rate is still absurdly high at 49%… that means out of my 300K of employment income, I paid almost 150K in taxes and kept the other half to pay for expensive groceries and afford the mortgage for my tiny townhouse of 900K… I realize that it seems like I’m complaining of a high income, but I’m grateful that I’m blessed with it, and I’m only wondering how Canada as a nation came to such high taxes… it’s not like this free healthcare is any good, we still have to wait 8 hours in the emergency room unless we’re having a heart attack, insulin is still not covered, and doctors refuse to order blood tests unless it looks like we’re dying of malnutrition… is it time to move to a different country or is this a “grass is always greener on the other side” kinda thought? Edit: my average tax rate is actually more like 40% but that’s still absurd in my opinion 6 yoe
Ngl Canada sounds like its going downhill
Canada taxes are very high, but bruh that is your top marginal tax rate. You are not paying 50% on 300k, unless you are omitting 500k+ in equity.
👆 This right here OP. You need to provide your average tax rate and you should probably edit your post as it is very misleading.
Yes you’re right for some reason any deductions I add increase my refund by 49% of the amount, so I assumed I was at a 49% bracket, but it’s actually more like 40%
At your income level you would get better healthcare in the states. For high earners, with employer sponsored insurance, the healthcare is quite good down here. It costs an arm and a leg if you don’t have an employee sponsored plan tho. It’s really tough if you have gaps in employment or start your own business, but as long as you’re employed by a mid to large size firm you will have access to great care. At 300k your tax rate would also be lower. Your comp would likely be much more competitive in the states. Although, it’s not a great tech employment market at the moment. Source- lived in both countries.
If you want to feel better, just think these extra tax as insurance. You don’t have to pay medical bill if you get cancer, heart attack or other heavy diseases, right? Also you will get same medical insurance if you lose your job. People always have down time.
When in Canada, you are fucked in all holes. You have no options except stop thinking about it. But you get free healthcare and education which may be bit good. Go for 100k job and you will be peaceful. There is no point in earning more than 200k in Canada due to taxes
In USA, you get fucked in all holes and get a bill for it at the end. You take that bill to your insurance and pray they don’t fuck your sore holes again. But hey, atleast you made a 100k more after working for twice the number of hours.
@Atlassian No one works twice the number of hours. Is this a way to cope up for living in Canada? Most people here don’t even work 40hr. It doesn’t matter whether you’re in Canada or US. Even healthcare is not an issue for tech people. Avg population is of course more fucked in US. But otherwise it’s better than the huge backlogs of Canada healthcare
Healthcare in Canada is not free. It's taxpayer funded. You paid for it and thousands of bloated federal and provincial healthcare administration bureaucrats' salaries with your taxes.
You shouldn’t earn 300k if you think your marginal tax rate is average tax rate!! Learn about taxes, definitely higher but not like 25% in US vs 50% in canada. It’s more like 30% average tax rate in US vs 40% in canada.
US is the best for earning money. After you're done there, head back to Canada and take a more chill job and relax.
Ive lived in both. You have no idea how bad American health care is. I have people in my family who got 150K hospital bills because they broke a hip and the ER hospital they went to was in network for their insurance, but the doctor that was on call was out of network and the rounding nurses were out of network so the insurance refused to pay and they've been fighting it for years. Imagine an octogenarian breaking a hip in Canada, not being able to afford an ambulance (because they start at 5k and are typically not covered by insurance) and then having to try to figure out during the emergency whether they are going to get a bill that will bankrupt them? Would never happen. And then fighting the bill for years. The hospital staffs never know who is in network or what something will cost. Ive also had coworkers who hate jobs but have to stay for health care because if they leave their kid cant get cancer treatment. Some stuff with obamacare got better sonthey cant deny insurance for a preexisting condition like cancer if you change jobs or had to get a new one after a lay off, but that could go away with the next government. In Canada yes you wait at the ER if you aren't having a real emergency because it is triage. The same is actually true in the US. In California my average tax was about 35%, but most Americans pay 1200+/month for health insurance and spend a lot of their money saving against medical bills you will eventually incur. Canada glorifies instant care for non critical cases but most americans can lt afford that ir the crazy bills. Average cost of giving birth starts at 4k, thats just forndropping it in the parkinglot. It's so shocking and Americans accept it like it's normal, and think the Canadian Healthcare system is bad. Ask anyone who has lived in both, US is so shocking, Canada is amazing.
I'd rather have healthcare I can pay for than rationed care that I won't get.
@microsoft: it’s clear that you didn’t live in canada, it’s in poor shape but not as bad as people exaggerate it to be. With a some focus, it should get better. But the free healthcare system itself is a great system. You shouldn’t have to work for healthcare plan, that’s barbarious.
You make some valid points but I'm still not leaving