Canadian Taxes Vs. US Taxes

by Karen Y. Larkin

Canada's 2010 national income taxes range between 15 and 29 percent, while federal income taxes in the United States range between 10 and 35 percent for the same time period.

Equal Taxes in the United States and Canada

For individuals whose adjusted gross incomes range between $8,375 and $34,000, there is no tax difference between taxes in the United States and Canada. Both countries charge 15 percent.

Higher Taxes in the United States

For individuals whose adjusted gross incomes range between $34,000 and $81,940, taxes are higher in the United States. Depending on where in that range your income falls, your taxes could be 3 to 10 percent higher in the U.S. Taxes in the U.S. are 2 percent higher than in Canada for individuals whose adjusted gross income falls between $82,400 and $127,021. Taxes are 4 percent higher in the U.S. for individuals whose adjusted gross incomes range between $171,850 and $373,650. Taxes are 6 percent higher in the U.S. for individuals whose adjusted gross incomes are above $373,650.

Higher Taxes in Canada

Taxes are 5 percent higher in Canada than in the U.S. for individuals whose adjusted gross incomes are below $8,375. Taxes are 1 percent higher in Canada than in the U.S. for individuals whose adjusted gross incomes are between $81,940 and $82,400. Taxes are 1 percent higher in Canada than in the U.S. for individuals whose adjusted gross incomes are between $127,021 and $171,850.

Due Dates

Canadian citizens file individual income taxes annually, on April 30, for the previous calendar year. They also have the option to pay quarterly during the tax year. U.S. citizens must file and pay annually on April 15.

About the Author

Ms. Larkin's first love is the family life she shares with her husband, Edward, and their teenaged daughter. She is a committed distance swimmer, enjoys creating homemade breads and is excited about turning 50 this summer. Ms. Larkin is also a recent addition to the President's Political Action Commission on Healthcare Reform and is passionate about making quality healthcare affordable and attainable for every U.S. citizen.

Photo Credits

  • tax defined image by Christopher Walker from Fotolia.com