Canada vs. USA (Take Home)

[despairedh1b]

Only asking so I am mentally and financially prepared. Any of you have ideas on what the take home difference would be between Canada and USA?

 

[harirajmohan]

Only asking so I am mentally and financially prepared. Any of you have ideas on what the take home difference would be between Canada and USA?

It depends on the position , location and the company. Be prepared for 25%-50% cut - Canadian equivalency.
Someone mentioned that if they can do consulting then you can get equivalent money(or even more) here itself hence it also again depends if its consulting/fulltime.

 

[Nick1233]

It depends on the position , location and the company. Be prepared for 25%-50% cut - Canadian equivalency.
Someone mentioned that if they can do consulting then you can get equivalent money(or even more) here itself hence it also again depends if its consulting/fulltime.

+1 on consulting route. When setup right, you could end up making more by optimizing taxes.

 

[despairedh1b]

+1 on consulting route. When setup right, you could end up making more by optimizing taxes.

But is tax really 40%? I tried doing something online with my research - took average tax, RRSP, rent, etc. and barely able to save anything even with $80k salary - what would be a recommended salary if say I am to settle in Toronto Downtown (Rent of $2k)?

 

[fr72]

But is tax really 40%? I tried doing something online with my research - took average tax, RRSP, rent, etc. and barely able to save anything even with $80k salary - what would be a recommended salary if say I am to settle in Toronto Downtown (Rent of $2k)?

Dude, all this info about taxes is online. Just google <Province name> take home pay.

 

[fr72]

Only asking so I am mentally and financially prepared. Any of you have ideas on what the take home difference would be between Canada and USA?

If you are skilled (can do leetcode medium whiteboard problems), there are now many US based remote roles available in Canada for US salary.

If you are EVVVC type consultant, then it will be tough.

 

[Qwertypod]

But is tax really 40%? I tried doing something online with my research - took average tax, RRSP, rent, etc. and barely able to save anything even with $80k salary - what would be a recommended salary if say I am to settle in Toronto Downtown (Rent of $2k)?

If you are trying to save money, in a single income household, I would recommend going with cheaper rent than 2K, which is currently attainable due to the pandemic forcing a lot of tenants to move away from downtown and leaving a lot of rentals empty.
In an ideal scenario, you want your rent to be no more than 30% of your take home.

 

[Nick1233]

But is tax really 40%? I tried doing something online with my research - took average tax, RRSP, rent, etc. and barely able to save anything even with $80k salary - what would be a recommended salary if say I am to settle in Toronto Downtown (Rent of $2k)?

Check it out for yourself. https://turbotax.intuit.ca/tax-resources/canada-income-tax-calculator.jsp

And for $80k salary, without field or years of experience, can't comment on the pay. Check Glassdoor to get an idea.

 

[despairedh1b]

Great points - Thanks all. I only had one last question if you don't mind. Apart from federal, province and RRSP, what other deductions are there? Just like how US has social security, Medicare, 401k, etc.? ---> Also, what %s have you all been putting for RRSP?

 

[ajithj]

Deductions are federal tax, provincial tax, CPP (canada pension plan, similar to social security but better managed and invested), EI (employment insurance). You can google any Canadian tax calculator to find your deductions.

RRSP is not a mandatory deduction. You can contribute if you want to. RRSP is similar to 401k. TFSA is similar to Roth IRA. RESP is similar to 529 plan.

 

[Z86]

If you are skilled (can do leetcode medium whiteboard problems), there are now many US based remote roles available in Canada for US salary.

If you are EVVVC type consultant, then it will be tough.

Which companies you would suggest that have a good work life balance and better pay?

 

[rohit.joshi]

If you are skilled (can do leetcode medium whiteboard problems), there are now many US based remote roles available in Canada for US salary.

If you are EVVVC type consultant, then it will be tough.

Can you please let me know, what are all the companies that are actually allowing remote to work from Canada with US pay. I tried looking it up online but couldn't find a reliable source.

Thanks,
Rohit

 

[rohit.joshi]

I calculated few things. My salary in the US is 130K and the same job pays $80 K in Canada. So I will be losing $50 K upfront. But one advantage in Canada is you can do multiple jobs. My kind of work is paid well in platforms like Upwork. In that way, if I spend 10 hours a week, I can make $30 K in a year (Not sure if freelancing is taxable). Also, my wife was unable to work in the US. She is equally qualified as I and she may get paid $50 k for a starter job. So overall, I feel that I will be financially stable and will have no thoughts on immigration ever. I want that peace of mind.

What's the nature of work? Please let me know. I would like to do some freelancing as well.

 

[Z86]

Can you please let me know, what are all the companies that are actually allowing remote to work from Canada with US pay. I tried looking it up online but couldn't find a reliable source.

Thanks,
Rohit

Join BLIND app. Lots of info there.

 

[fr72]

Can you please let me know, what are all the companies that are actually allowing remote to work from Canada with US pay. I tried looking it up online but couldn't find a reliable source.

Thanks,
Rohit

Search for jobs in LinkedIN with location = Remote