This might make you feel better about US taxes.

[pwrshift]

Nobody likes taxes, but in Canada if you make over $200,000 a year in 2016 your take home could be less than the government takes...53.53% taxes in my province Ontario. Ouch!

"The combined federal and provincial tax rate for income over $200,000 will range from 48% to 59%, depending on the individual’s province of residence. Combined federal and provincial top marginal tax rates for income over $200,000 will be as follows for 2016."

Here are the details...

http://www.kpmg.com/Ca/en/IssuesAndInsights/ArticlesPublications/TNF/Documents/tnfc1538.pdf

Brian

 

[Jason245]

To clarify this is on the portion of income above 200k.. not the entire 200k.

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[Blues]

It's always tricky to compare tax rates in different countries, because countries have such different tax structures. Still...

Yes, a $200K income in the US will "only" put you into the 33% tax bracket. But... the US has a myriad of different taxes, probably more so than most countries. Let's not forget FICA - 7.65% on you, plus another 7.65% from your employer. And then there's state and local taxes, property tax, sales taxes, etc. I'm not conversant enough in taxes in various countries to be able to say whether Canada's taxes are higher or lower than ours. But ours are high enough, thank you very much.

Bob

 

[VacationForever]

It's always tricky to compare tax rates in different countries, because countries have such different tax structures. Still...

Yes, a $200K income in the US will "only" put you into the 33% tax bracket. But... the US has a myriad of different taxes, probably more so than most countries. Let's not forget FICA - 7.65% on you, plus another 7.65% from your employer. And then there's state and local taxes, property tax, sales taxes, etc. I'm not conversant enough in taxes in various countries to be able to say whether Canada's taxes are higher or lower than ours. But ours are high enough, thank you very much.

Bob

Yep, and Californians pay more than most states.

 

[WinniWoman]

And-Did you ever watch Property Brothers The prices of Canadian homes are outrageous for what they get!

 

[T-Dot-Traveller]

And-Did you ever watch Property Brothers The prices of Canadian homes are outrageous for what they get!

But - when you bought 20+ years ago - you make more $

 

[WinniWoman]

My house would cost a fortune over there. And I have a lot of land- 10.5 acres. Owned it for 28 years and would get under $300,000 if we are lucky to even sell it. In other parts of the USA, my house would be worth million dollars.

 

[WinniWoman]

It's always tricky to compare tax rates in different countries, because countries have such different tax structures. Still...

Yes, a $200K income in the US will "only" put you into the 33% tax bracket. But... the US has a myriad of different taxes, probably more so than most countries. Let's not forget FICA - 7.65% on you, plus another 7.65% from your employer. And then there's state and local taxes, property tax, sales taxes, etc. I'm not conversant enough in taxes in various countries to be able to say whether Canada's taxes are higher or lower than ours. But ours are high enough, thank you very much.

Bob

]

And don't forget , the taxes have to pay for the universal health coverage in Canada.

 

[SMHarman]

]

And don't forget , the taxes have to pay for the universal health coverage in Canada.

Growing up and living the first 30 years in the UK and the next decade in the US I can tell you the tax take is about the same in most countries if you count.

Income tax
Social security
Unemployment
Property
Medical insurance
Medical deductible
Medical copay
Prescriptions.

Both soon run near the 50s, even in the US. Friends from Canada and Switzerland and Australia support this.

 

[WinniWoman]

Both soon run near the 50s, even in the US. Friends from Canada and Switzerland and Australia support this.

Not understanding this last sentence.

 

[SMHarman]

Both soon run to about 50% off your income going in taxes.

I also have friends from Switzerland, Canada and Australia who confirm the tax take in those countries is simular.

 

[WinniWoman]

Both soon run to about 50% off your income going in taxes.

I also have friends from Switzerland, Canada and Australia who confirm the tax take in those countries is simular.

Oh, I see. Thanks. I guess there's no place to hide.

 

[SMHarman]

Oh, I see. Thanks. I guess there's no place to hide.

True.
It's a lot about how the bill is sliced and diced.
High income and corporation taxes mean lower property taxes and no medical insurance in the UK.

And in the US all these high headline rates soon get deducted down to lower real rates.

 

[Icc5]

Cupertino,Ca. House

My house would cost a fortune over there. And I have a lot of land- 10.5 acres. Owned it for 28 years and would get under $300,000 if we are lucky to even sell it. In other parts of the USA, my house would be worth million dollars.

Here my 3200 sq. ft. house on a normal lot is headed towards 3 million. If we sold it capital gains tax, realtor fees, etc. would kill us. With Apple Computer spaceship campus being built our houses will do nothing but go up. Worth so much but can't afford to sell.

 

[VacationForever]

Here my 3200 sq. ft. house on a normal lot is headed towards 3 million. If we sold it capital gains tax, realtor fees, etc. would kill us. With Apple Computer spaceship campus being built our houses will do nothing but go up. Worth so much but can't afford to sell.

By selling it you can move out of the area - wealthy, and not worry about earthquakes.

 

[moonstone]

And-Did you ever watch Property Brothers The prices of Canadian homes are outrageous for what they get!

They frequently film in & around Vancouver & Calgary - two very expensive areas for houses compared to a lot of other cities in Canada. Even more expensive than parts of Toronto, where they have also filmed. I have read that they are now filming Property brothers at some US locations (Atlanta, Austin). Its always interesting to see house prices in various areas around the US & Canada.

~Diane

 

[moonstone]

And-Did you ever watch Property Brothers The prices of Canadian homes are outrageous for what they get!

They frequently film in & around Vancouver & Calgary - two very expensive areas for houses compared to a lot of other cities in Canada. Even more expensive than parts of Toronto, where they have also filmed. I have read that they are now filming Property Brothers at some US locations (Atlanta, Austin). Its always interesting to see house prices in various areas around the US & Canada.

~Diane

 

[Icc5]

Earthquakes?

By selling it you can move out of the area - wealthy, and not worry about earthquakes.

In 65 years I've experienced one earthquake that bothered us. It took down part of our chimmney and pulled our pool cover out. Never had to worry about tornadoes,hurricanes, or major snow problems. A little shaking instead of stirred is fine with me.
On vacations we have dealt with heavy snow,flooding,tornado, and a rain so hard we had to pull over for a few hours because we couldn't even see. No, this wasn't just us. The locals said they hadn't seen rain like that ever before.
We live here because of the weather and put up with hell as far as traffic and a few other things but as far as I know our weather is the best.

 

[pwrshift]

And-Did you ever watch Property Brothers The prices of Canadian homes are outrageous for what they get!

Very true...and the gain on selling your principal home are not taxed! Yet.

You can get a 600 sq ft condo downtown Toronto for $600,000 or more! The govt now requires 20% down (up from 10%) so if a kid buys one with $120k from parents he/she has to take a $380,000 first mortgage. Sound familiar like the great recession? Canada is next.

Brian

 

[friedshrimp]

Very true...and the gain on selling your principal home are not taxed! Yet.

You can get a 600 sq ft condo downtown Toronto for $600,000 or more! The govt now requires 20% down (up from 10%) so if a kid buys one with $120k from parents he/she has to take a $380,000 first mortgage. Sound familiar like the great recession? Canada is next.

Brian

Actually, that would be $480k mortgage. But first of all, what parent is going to give $120k to a child to buy a house? At best, a rich parent might loan $120k but then child still has a $600k debt to pay.

 

[WinniWoman]

Very true...and the gain on selling your principal home are not taxed! Yet.

You can get a 600 sq ft condo downtown Toronto for $600,000 or more! The govt now requires 20% down (up from 10%) so if a kid buys one with $120k from parents he/she has to take a $380,000 first mortgage. Sound familiar like the great recession? Canada is next.

Brian

Absolutely crazy! What kind of salaries are in Canada?

 

[Jason245]

Very true...and the gain on selling your principal home are not taxed! Yet.

You can get a 600 sq ft condo downtown Toronto for $600,000 or more! The govt now requires 20% down (up from 10%) so if a kid buys one with $120k from parents he/she has to take a $380,000 first mortgage. Sound familiar like the great recession? Canada is next.

Brian

I believe if you finance more than 80 percent you need mortgage loan insurance. .which is similar to the usa requirements(pmi). . Doesn't sound like an impossibly or something strange.

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[Chrisky]

Absolutely crazy! What kind of salaries are in Canada?

Actually not all prices for condos in the Toronto area are that ridiculous. If people are willing to take the GO Train into Toronto (maybe a 20 or 30 min. ride) they can purchase much cheaper homes and condos.
As far as I know, in the US people can deduct all sorts of expenses for the upkeep of their home on their income tax, we cannot do that in Canada. The only time we can use expenses on our income tax is if we own a house or condo and rent it out. Then, of course, when it is sold, we pay capital gains on the sale of that condo.

 

[vacationhopeful]

Here my 3200 sq. ft. house on a normal lot is headed towards 3 million. If we sold it capital gains tax, realtor fees, etc. would kill us. With Apple Computer spaceship campus being built our houses will do nothing but go up. Worth so much but can't afford to sell.

In my area, every HOUSE, condo or apt SOLD or RENTED must each time get an inspection for "Continued Occupancy" by a local "inspector" who feels it is their "moral" code to demand "repairs" outside of any contract and/or most building standards. Even if I wore a GO-PRO camera, they will require you to either pickup the repair list or mail you the repair list, schedule a re-inspection and PAY for another "inspection fee" (generally, $50 or more). Several towns required a licensed heating contractor to "certify the heating system" each time occupancy changes. Anything which MIGHT require a permit, is done separately and with additional fees ... and most times is NOT inspected by the same person (and you get a NEW repair list). If you are a home owner occupant, you can do many "licensed" functions after pulling a permit ... but to rent/sell a NON-owner occupied home ... a license (in the trade) contractor must pull the permit .. roofing, plumbing (including swapping a faucet or toilet, electrical, heating/AC, concrete, window replacement, etc). And they TOTALLY pull the property card for the site ... before you own it ... and make you accountable for ANY non-remitted actions that prior inspections MIGHT have missed.

And you wonder why costs keep going up?

PS It is a felony to offer or give a bribe to ANY public official. Then you most likely will not have to worry about your "former" condo or house.

 

[theo]

Howzzat now?

>> snip>> As far as I know, in the US people can deduct all sorts of expenses for the upkeep of their home on their income tax, we cannot do that in Canada. The only time we can use expenses on our income tax is if we own a house or condo and rent it out. Then, of course, when it is sold, we pay capital gains on the sale of that condo.

I'm certainly no tax expert, but I've surely paid my fair share of taxes (...and then some, IMO) associated with occupied principal residences in several different U.S. states over the years. AFAIK, no "expenses for the upkeep of their home" (i.e., principal residence) in the U.S. are in any way federal income tax deductible.
Only upon later sale do improvement expenditures figure into computation of "basis" and the capital gains tax which may potentially be applicable after the sale.
That's it, to the best of my knowledge and belief --- what exactly might you have believed to be otherwise here?

P.S. Perhaps you are referring to U.S. tax credits for certain eligible energy-related improvements? (such as solar panels, to cite one specific example). These are not "upkeep" expenses. Also, unless extended by federal legislation, those U.S. tax credits for solar installation are currently slated to disappear at the end of CY 2016.