I make decent salary in US but to my surprise my effective tax rate was 10% after 401k, HSA, IRA and Roth IRA. I am wondering if I should stay in US for 1-2 more years and not move to Canada. Anyone in similar situation?
I work in NY and live in CT. Both states are known for high taxes.That is a pretty low effective tax rate you’re implying there. Are you living in a state with no income taxes? Are you factoring in the cost of healthcare?
Taxes are much higher in Canada for sure after factoring in the provincial taxes as well. I am currently paying about 40% in total taxes in Canada.
What you have to keep in mind is that the rules in Canada can change at anytime. Therefore do you want to risk it for a few dollars more? That is a question you need to answer by yourself.
Lol. Yeah I made mistakes. I did pay $5283 to NY which is outside of 11.53% I paid to Federal govt. Plus Health expenses ( Premium + Bills) of around 12k. So around 16% in taxes and 9% in Health care expenses.Is that including state/other tax? I also work in NY and live in CT. I think my effective federal tax rate is something like 11% this year, but that doesn't include state tax, medicare, SS, or NY family leave. I ran the numbers with my SO a few days ago, converting my salary to CAD-- the taxes are still very close, percentage-wise (like 25% ON/Canada vs 23.5% NY/US-- something silly close). That also includes healthcare in Canada, but not in the US.
If you really want to live in Canada, I don't think there's a huge benefit to postponing your move.
I agree with this post completely. To each their own.You need to decide what is your priority. If it is clearly economics, then stay in the US. If lifestyle and other non economic factors comes first, then think about moving to Canada.
There is no question you can make and save more money in the US over the long haul (my wife reminds me everyday lol).
The other "X" factor is how US taxes American expats living abroad. If you move to Canada, you are still stuck filing (and perhaps paying) taxes to the IRS, on top of your Canadian taxes. And your taxes get much more complicated due to the "foreign" nature of your income and accounts. A crossborder accountant is often recommended and they are quite expensive.
Don't forget the FBAR with the US Treasury Dept.I think that for the majority of folks living and working in Canada would only require that you file a tax return with the IRS.