3 ms·
Hot-take prediction: this will end up to be one of those situations where other rich countries with a federal system have battle-worn solutions (Germany? Switze
by peteretep 6y ago
Hot-take prediction: this will end up to be one of those situations where other rich countries with a federal system have battle-worn solutions (Germany? Switzerland?) while America wrings its collective hands and says “it could never work?!”
- smnrchrds 6y agoI can vouch for Canada. In Canada, you pay federal income tax plus provincial income tax to the province of your residence. You also get services (e.g. healthcare) from the province of your residence. If you live in one province but work (remotely or in-person) in another province, the company deducts taxes based on its own location. When you file taxes at the end of the year and indicate your province of residence, taxes get recalculated based on that and you either have to pay or get a refund. Taxes already deducted will automatically get transferred to the province of residence (it may be a bit different if one of the provinces is Quebec. In that case, some more manual intervention may be required. But the taxes owed are still calculated based on residence). If you move your residence during the year, your residence as of December 31 are used for calculating taxes.