Salary - $2,500,000
Tax - - $1,305,636
Net Pay - * $1,194,364
52% Tax + 48% net pay .
Then pay indirect taxes. So total 70% salary gone in tax
Canada has 50% income tax : DAMN
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Canada is a cheap place to live after taxes for people who earn less than 50k, you get back more than you pay, especially if you have children. The incentive structure is tilted towards quiet quitting and finding a less stressful job. Minimum wage is $15.50 in Ontario, and prices at stores/for rent are roughly dollar for dollar parity with US prices. Schools are uniformly good and health care costs are not an issue unless you have dental issues or are on an expensive prescription.
Obviously those people can't afford to live in a major city, but if they already own a house in Swift Current or Thunder Bay they are fine.
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None if you own your own house, which is still the optimal strategy though you won't get any sub-100k CDN deals anymore like at the beginning of the pandemic.
Up here (minor city, will not disclose location), probably about $800 for a 1-bedroom, $1200 for a three bedroom, max. In Toronto, expect to pay at least 3 times that.
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Salary - $2,500,000
Tax - - $1,305,636
Net Pay - * $1,194,364
52% Tax + 48% net pay .
Then pay indirect taxes. So total 70% salary gone in taxWhy is this surprising or high? In New York, NY, it is very similar. For 2,500,000 HH income, for a single person:
Total Income Taxes 50.17% $1,254,354
Income After Taxes 49.83% $1,245,646 -
You are smart people, look at the funding model for Ontario schools (property taxes and provincial subsidies). Districts with smaller tax bases receive considerably more in the way of top-ups than their counterparts in the US, particularly in the South.
If you send your kids to a French immersion school (like a magnet school in the US), you're getting the equivalent of a private gifted school education in the US, for free (those who aren't intelligent enough to handle bilingual education drop out very quickly). Plus you are more competitive on the Canadian job market in general when you graduate if you stay in the system and put in the effort to reach fluency.
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Canada is a cheap place to live after taxes for people who earn less than 50k, you get back more than you pay, especially if you have children. The incentive structure is tilted towards quiet quitting and finding a less stressful job. Minimum wage is $15.50 in Ontario, and prices at stores/for rent are roughly dollar for dollar parity with US prices. Schools are uniformly good and health care costs are not an issue unless you have dental issues or are on an expensive prescription.
Obviously those people can't afford to live in a major city, but if they already own a house in Swift Current or Thunder Bay they are fine.but wouldn't heating in the winter be insanely expensive?
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Most houses - even old homes - in Canada are very well-insulated. I never pay more than $400 a month for electricity (without a gas furnace) in the winter, and that decreases to $100 a month in the summer (only need a window unit for air conditioning that I run a few times a summer).
Living in a smaller city in Canada is underrated. There has been a recent influx of South Asians priced out of larger centres, so cultural diversity is present. The people are friendly, there is no traffic, and a more communal society means people are willing to contribute to cultural amenities and funding for good schools.