I always take a year-end bump on the first payroll of the next year, 60K pretax, 31,700 after tax. Feels so fucking bad every time.

Holy sht how? Why is it so high

This post was edited by ChocolateCoveredGummyBears on Jan 4 2024 10:49am

Canadian tax rates. Im subject to 47% tax on every additional dollar earned.

That's before the CPP and EI we pay every single year.

Then I use my after-tax dollars I lost nearly 50% on to go pay GST/HST on every single item, carbon tax, fuel tax, liquor tax, property tax list goes on. That's before you dig into every single renewal with the gov'ts that also have a fee attached.



This post was edited by SBD on Jan 4 2024 11:25am

Jesus

Our federal capped at 37

If I still lived back on the East Coast, it would be 54%.

Nova Scotia - over $246,752 54.00%

It does not exactly incentivize me to work harder to be honest. I have significantly more capacity to give, obviously, im spending time shit posting here during work. But with 50% tax, no thanks.

This post was edited by SBD on Jan 4 2024 11:27am

amd back up

Pardon my ignorance with Canadian taxes , is this figure equivalent to your state + federal tax or just federal tax?

Iowa effective state tax is about 5% and fed effective 33

The Marginal rates get closer to that 50% psychological level but is what it is

Combined tax bracket (Provincial + Federal)

Our Fed goes up to 33% then you have whatever provincial tax on top of that.

This post was edited by SBD on Jan 4 2024 03:17pm

Ah gotcha , those provincial numbers are high

Even NY you have to be hitting 5 mill before you enter 10s marginal rates

Yeah, ours are not. https://assets.kpmg.com/content/dam/kpmg/ca/pdf/2023/10/ca-federal-and-provincial-territorial-income-tax-rates-and-brackets-for-2023.pdf

You're looking at 20%+ provincial tax on your marginal rates just for marking close to 250K in some provinces.

And there's no big tax rebate or provincial tax credits that recoup, its a slaughter every-year.

What is also worth noting, what is not on that PDF is also payroll taxes. That's another set of taxes that comes off your pay. CPP, EI and in some territories a flat 2% payroll tax. CPP and EI are capped per year but you're still looking at another $4,500 dollars combined for those now and the 2% payroll tax has no cap, so that's just another 2% ontop of everything.

It just never ends, it actually makes you consider denouncing citizenship later in life and moving to a tax friendly country and where your money will go further.

Stuff is expensive in Canada. We don't live in some heavily subsidized world up here because of our high taxes. It's still very expensive to live.

This post was edited by SBD on Jan 4 2024 03:42pm