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Actually, here are the 100k tax rates for Waterloo, Ontario, Canada vs. SF, California: Waterloo: 26% Federal + 11.16% Provincial = 37.16% http://www.cra-arc.g

Actually, here are the 100k tax rates for Waterloo, Ontario, Canada vs. SF, California: Waterloo: 26% Federal + 11.16% Provincial = 37.16% http://www.cra-arc.gc.ca/tx/ndvdls/fq/txrts-eng.html http://www.cra-arc.gc.ca/tx/ndvdls/fq/txrts-eng.html San Francisco: 28% Federal + 9.3%x(0.72) State = 34.7% <-- (9.3%x0.72 because you can deduct your state taxed amount in certain scenarios) http://www.efile.com/tax-rate/federal-income-tax-rates/ http://www.efile.com/tax-rate/federal-income-tax-rates/ https://www.ftb.ca.gov/forms/catxrate_exmpt07.shtml https://www.ftb.ca.gov/forms/catxrate_exmpt07.shtml Once you get above 174k/year, it's sill similar, with: Waterloo: 29% Federal + 11.16% Provincial = 40.16% San Francisco: 33% Federal + 9.3%x(0.72) State = 39.7% So at 100k, Canadian taxes are very slightly higher higher, and is almost even at 174k. If you're working at a startup, Canada may even be more advantageous because of how capital gains taxes are treated on privately held CCPC's. Also, you have health care. :)

mdkess 15y ago
Except that you deduct your state/local income tax from your federal income tax.
- wwhchung 15y ago
  Edit: Your statement that you can deduct income tax is True IF you don't take the standard deduction. Basically in your deduction, you can choose to take the standard $5800 deduction, or deduct the total taxes you paid for california (at $100k, it is only marginally over $5800). At over 200k, you are likely to get hit with AMT, so the deduction would be limited. I've updated the tax rates above to be more indicative of the adjusted rates in the best case scenario, but California vs. Canada is still VERY close.
mdkess 15y ago
http://www.irs.gov/publications/p17/ch22.html http://www.irs.gov/publications/p17/ch22.html
- wwhchung 15y ago
  Yup, this is true. I updated my posts to reflect this. However once you get above 200k range, AMT starts to kick in and you can't deduct the full amount.
jbarham 15y ago
Health care is a given in the U.S. if you're making that kind of salary so for me it was always a non-issue. Try re-calculating the tax rates if you have a non-working spouse (as was my case since I was on a work visa) and you're significantly better off in the U.S.
bryanlarsen 15y ago
"If you're working at a startup, Canada may even be more advantageous because of how capital gains taxes are treated on privately held CCPC's" This is huge. Read as "the first $750K of your startup windfall is tax free".

mdkess 15y ago

Except that you deduct your state/local income tax from your federal income tax.

wwhchung 15y ago
Edit: Your statement that you can deduct income tax is True IF you don't take the standard deduction. Basically in your deduction, you can choose to take the standard $5800 deduction, or deduct the total taxes you paid for california (at $100k, it is only marginally over $5800). At over 200k, you are likely to get hit with AMT, so the deduction would be limited. I've updated the tax rates above to be more indicative of the adjusted rates in the best case scenario, but California vs. Canada is still VERY close.

mdkess 15y ago

http://www.irs.gov/publications/p17/ch22.html http://www.irs.gov/publications/p17/ch22.html

wwhchung 15y ago
Yup, this is true. I updated my posts to reflect this. However once you get above 200k range, AMT starts to kick in and you can't deduct the full amount.

jbarham 15y ago

Health care is a given in the U.S. if you're making that kind of salary so for me it was always a non-issue. Try re-calculating the tax rates if you have a non-working spouse (as was my case since I was on a work visa) and you're significantly better off in the U.S.

bryanlarsen 15y ago

"If you're working at a startup, Canada may even be more advantageous because of how capital gains taxes are treated on privately held CCPC's" This is huge. Read as "the first $750K of your startup windfall is tax free".