California vs Canada: Taxes & Take-Home Pay 2026

On a $100,000 salary you keep $72,969 in California and $71,132 in Canada — $1,837 more per year in California ($153 a month). Single filer, standard deductions.

Updated 2026-10-03 · International figures converted at the exchange rate noted in sources; salaries entered in US dollars. Excludes retirement, health and cost-of-living differences.

Take-home pay at every salary

Gross salary	California	Canada	Difference
$40,000	$33,252 (16.9% tax)	$31,484 (21.3% tax)	$1,767
$60,000	$48,037 (19.9% tax)	$44,460 (25.9% tax)	$3,577
$75,000	$57,952 (22.7% tax)	$55,012 (26.7% tax)	$2,940
$100,000	$72,969 (27.0% tax)	$71,132 (28.9% tax)	$1,837
$150,000	$102,280 (31.8% tax)	$101,428 (32.4% tax)	$852
$250,000	$161,071 (35.6% tax)	$156,575 (37.4% tax)	$4,496

California total tax rate
Canada total tax rate

Where the money goes at $100,000

California
Canada

Federal income tax

$13,170

Social Security + Medicare

$7,650

State income tax

$4,911

State payroll taxes

$1,300

Income tax

$24,816

CPP (base + first additional)

$2,971

CPP2 (second additional)

$292

Employment Insurance

$789

About taxes in California

California has the highest top income tax rate in the US: 13.3%. That is the 12.3% top bracket plus the 1% Mental Health Services Tax on taxable income over $1 million.
FTB indexed the 2026 brackets for 3.4% inflation (California CPI, June 2025 to June 2026). For single filers the 9.3% bracket now starts at $75,197.
The 2026 standard deduction is $5,900 for single filers and $11,800 for joint filers and heads of household, up from $5,706 and $11,412.
Exemptions are tax credits, not deductions: $158 per person ($316 for joint filers) and $491 per dependent in 2026.
The SDI withholding rate is 1.3% in 2026. Since 2024 SDI has no wage cap, so it applies to every dollar of wages.

California paycheck calculator →

About taxes in Canada

Federal 2026 rates: 14% up to $58,523, 20.5% to $117,045, 26% to $181,440, 29% to $258,482 and 33% above; the lowest rate was cut from 15% to 14% from 1 July 2025.
Ontario 2026 rates: 5.05% up to $53,891, 9.15% to $107,785, 11.16% to $150,000, 12.16% to $220,000 and 13.16% above.
The 2026 federal basic personal amount is $16,452 (reduced to $14,829 for net income above $258,482), and the Ontario basic personal amount is $12,989; both are non-refundable credits at the lowest rate.
CPP 2026: 5.95% employee contribution on earnings between the $3,500 basic exemption and the $74,600 YMPE (maximum $4,230.45), plus CPP2 at 4% between $74,600 and $85,000 (maximum $416).
EI 2026: employees outside Quebec pay $1.63 per $100 of insurable earnings up to $68,900, a maximum premium of $1,123.07.

Salary needed to keep the same take-home

If you move between California and Canada, this is the gross salary (in US dollars) that leaves the same take-home pay after income tax and employee contributions.

Salary in California	Take-home	Same take-home in Canada needs	Difference
$50,000	$40,732	$54,400	+$4,400 (8.8%)
$75,000	$57,952	$79,282	+$4,282 (5.7%)
$100,000	$72,969	$102,923	+$2,923 (2.9%)
$150,000	$102,280	$151,448	+$1,448 (1.0%)

Tax on your next $1,000

The marginal rate — the share of a raise that goes to tax and contributions — often matters more than the average rate.

Salary	California	Canada
$40,000	25.0%	30.7%
$75,000	38.9%	30.3%
$100,000	40.3%	37.2%
$150,000	42.3%	41.2%
$250,000	45.0%	46.2%

What employers pay on top

Employer payroll and social contributions are not deducted from your pay, but they affect what employers can afford to offer.

California (US)

Employer Social Security (OASDI): 6.20% — Matches the employee: 6.2% on wages up to $184,500 in 2026.
Employer Medicare: 1.45% — Matches the employee: 1.45% on all wages with no cap (the 0.9% Additional Medicare Tax has no employer match).
FUTA (federal unemployment): 0.60% — 6.0% on the first $7,000 of each employee’s wages, normally 0.6% after the 5.4% credit for state unemployment tax; states add their own unemployment tax.

Canada

Employer CPP: 5.95% — Matches the employee: 5.95% on earnings between $3,500 and $74,600 in 2026.
Employer CPP2: 4.00% — Matches the employee: 4% on earnings between $74,600 and $85,000 in 2026.
Employer EI premium: 2.28% — 1.4 times the employee rate (2.282%) on insurable earnings up to $68,900, a maximum of $1,572.30 per employee in 2026 (outside Quebec).

Typical pay and minimum wage

	California (US)	Canada
Median earnings	1,251 USD ($1,251) — median usual weekly earnings, full-time wage and salary workers (BLS), Q2 2026	1,320 CAD ($927) — median weekly wage, full-time employees (Statistics Canada Labour Force Survey), 2025
Minimum wage	7.25 USD/hour ($7.25), from 24 July 2009 (federal; many states and cities set higher rates)	18.15 CAD/hour ($12.75), from 1 April 2026 (federal rate for federally regulated sectors; provinces set their own)

US figures are national; many states and cities set a higher minimum wage.

Canada vs California city by city

Take-home pay varies across California with local taxes, and living costs vary even more. On $75,000 you keep $55,012 in Canada. California also deducts State Disability Insurance (SDI, incl. Paid Family Leave) (1.30%).

City	Take-home on $75k	vs Canada	Sales tax	Median rent / month	Price level (US = 100)	Take-home in national prices
Los Angeles	$57,952	+$2,940	10.25%	$1,958	113.6	$51,030
San Francisco	$57,952	+$2,940	8.63%	$2,448	115.6	$50,126
San Diego	$57,952	+$2,940	7.75%	$2,414	111.9	$51,795
San Jose	$57,952	+$2,940	10.00%	$2,674	110.4	$52,482

California has the highest top income tax rate in the US: 13.3%. That is the 12.3% top bracket plus the 1% Mental Health Services Tax on taxable income over $1 million.
FTB indexed the 2026 brackets for 3.4% inflation (California CPI, June 2025 to June 2026). For single filers the 9.3% bracket now starts at $75,197.
The 2026 standard deduction is $5,900 for single filers and $11,800 for joint filers and heads of household, up from $5,706 and $11,412.
Exemptions are tax credits, not deductions: $158 per person ($316 for joint filers) and $491 per dependent in 2026.

How the two tax systems differ

	California (US)	Canada
Tax year	1 January – 31 December 2026	1 January – 31 December 2026
Filing a tax return	Most workers file an annual Form 1040 even though tax is withheld from pay; filing is required once gross income passes the threshold (e.g. $15,750 for a single filer under 65 for 2025).	Almost everyone files an annual T1 return even when tax is withheld at source, to claim credits and benefits; the deadline is 30 April (15 June if self-employed).
Consumption tax	Sales tax (no federal VAT) 0%. There is no national VAT or GST; states and localities levy their own retail sales taxes, and five states have no statewide sales tax.	GST/HST 5% (reduced: HST of 13% (Ontario), 14% (Nova Scotia) or 15% (NB, NL, PEI) replaces the 5% GST in harmonized provinces). BC, Manitoba, Saskatchewan and Quebec add a separate provincial sales tax (QST 9.975% in Quebec).
Retirement	Social Security is the mandatory public pension, funded by 6.2% from both employee and employer; workplace plans such as a 401(k) are voluntary, with employee deferrals limited to $24,500 in 2026.	The Canada Pension Plan is mandatory: employees and employers each pay 5.95% on earnings between $3,500 and $74,600 plus 4% CPP2 up to $85,000 (Quebec runs the separate QPP). Workplace pensions and RRSPs are voluntary.
Healthcare	There is no universal public insurance for working-age adults; most get coverage through an employer plan with premiums shared with the employer, while the 1.45% Medicare tax (matched by employers) funds hospital insurance for people 65 and over.	Health care is universal and funded through taxes; provinces run their own insurance plans under the Canada Health Act, so medically necessary hospital and physician services carry no charge. Some provinces add a premium through the tax system, such as the Ontario Health Premium (up to $900).
Capital gains	Long-term gains (assets held over a year) are taxed at 0%, 15% or 20% depending on taxable income, plus 3.8% net investment income tax for higher earners; short-term gains are taxed as ordinary income.	One-half of a capital gain is included in taxable income and taxed at your marginal rate.

Frequently asked questions

Is California or Canada better for taxes?

At $100,000, California leaves you $1,837 more per year after income and payroll taxes. The gap widens at higher incomes ($4,496 at $250,000).

How much is $60,000 after tax in California and Canada?

$48,037 in California and $44,460 in Canada.

Sources

Figures are taken from official government publications and were last reviewed on 2026-10-03.