US vs Canada: what differs
US and Canada tax salaries differently. In US, the payslip deductions are Federal income tax, Social Security and Medicare. In Canada, they're Federal income tax, Ontario income tax, Ontario Health Premium, CPP, CPP2 and EI. On this salary, US's effective tax rate works out to about 20.8% versus 30.8% in Canada — use the calculator to compare any salary or add more countries.
US vs Canada — FAQ
Do you pay more tax in US or Canada?
On a $100,000-equivalent salary, Canada has the higher effective tax rate (30.8% vs 20.8%), so you keep more of your pay in US. The gap shifts with income — try your own salary in the calculator above.
Is take-home pay higher in US or Canada?
US — about $79,180 versus $69,227 on a $100,000 salary (both shown in USD).
What is deducted from salary in US and Canada?
US: Federal income tax, Social Security and Medicare. Canada: Federal income tax, Ontario income tax, Ontario Health Premium, CPP, CPP2 and EI.