Canada vs United States: Taxes & Take-Home Pay 2026
On a $100,000 salary you keep $71,132 in Canada and $79,180 in United States — $8,048 more per year in United States ($671 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 | Canada | United States | Difference |
|---|---|---|---|
| $40,000 | $31,484 (21.3% tax) | $34,320 (14.2% tax) | -$2,836 |
| $60,000 | $44,460 (25.9% tax) | $50,390 (16.0% tax) | -$5,930 |
| $75,000 | $55,012 (26.7% tax) | $61,593 (17.9% tax) | -$6,580 |
| $100,000 | $71,132 (28.9% tax) | $79,180 (20.8% tax) | -$8,048 |
| $150,000 | $101,428 (32.4% tax) | $113,791 (24.1% tax) | -$12,363 |
| $250,000 | $156,575 (37.4% tax) | $183,182 (26.7% tax) | -$26,607 |
- Canada total tax rate
- United States total tax rate
Where the money goes at $100,000
- Canada
- United States
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.
About taxes in United States
Salary needed to keep the same take-home
If you move between Canada and United States, this is the gross salary (in US dollars) that leaves the same take-home pay after income tax and employee contributions.
| Salary in Canada | Take-home | Same take-home in United States needs | Difference |
|---|---|---|---|
| $50,000 | $37,859 | $44,405 | −$5,595 (-11.2%) |
| $75,000 | $55,012 | $65,752 | −$9,248 (-12.3%) |
| $100,000 | $71,132 | $88,560 | −$11,440 (-11.4%) |
| $150,000 | $101,428 | $131,913 | −$18,087 (-12.1%) |
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 | Canada | United States |
|---|---|---|
| $40,000 | 30.7% | 19.7% |
| $75,000 | 30.3% | 29.6% |
| $100,000 | 37.2% | 29.6% |
| $150,000 | 41.2% | 31.6% |
| $250,000 | 46.2% | 34.4% |
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.
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).
United States
- 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.
Typical pay and minimum wage
| Canada | United States | |
|---|---|---|
| Median earnings | 1,320 CAD ($927) — median weekly wage, full-time employees (Statistics Canada Labour Force Survey), 2025 | 1,251 USD ($1,251) — median usual weekly earnings, full-time wage and salary workers (BLS), Q2 2026 |
| Minimum wage | 18.15 CAD/hour ($12.75), from 1 April 2026 (federal rate for federally regulated sectors; provinces set their own) | 7.25 USD/hour ($7.25), from 24 July 2009 (federal; many states and cities set higher rates) |
Canada vs every US state
The figures above use federal tax only, which is what you pay in a state with no income tax. Add state and local income tax and the answer changes: on $75,000, 51 of 51 states leave more take-home pay than Canada ($55,012), and 0 leave less.
| State | Take-home on $75k | vs Canada | Take-home on $150k | vs Canada |
|---|---|---|---|---|
| Florida | $61,593 | +$6,580 | $113,791 | +$12,363 |
| Nevada | $61,593 | +$6,580 | $113,791 | +$12,363 |
| New Hampshire | $61,593 | +$6,580 | $113,791 | +$12,363 |
| South Dakota | $61,593 | +$6,580 | $113,791 | +$12,363 |
| Tennessee | $61,593 | +$6,580 | $113,791 | +$12,363 |
| Texas | $61,593 | +$6,580 | $113,791 | +$12,363 |
| Wyoming | $61,593 | +$6,580 | $113,791 | +$12,363 |
| North Dakota | $61,411 | +$6,399 | $112,147 | +$10,718 |
| Alaska | $61,322 | +$6,309 | $113,520 | +$12,092 |
| Washington | $60,552 | +$5,540 | $111,711 | +$10,282 |
| Arizona | $60,111 | +$5,099 | $110,435 | +$9,006 |
| Louisiana | $59,729 | +$4,717 | $109,677 | +$8,249 |
| South Carolina | $59,433 | +$4,420 | $107,724 | +$6,295 |
| Mississippi | $59,325 | +$4,312 | $108,523 | +$7,095 |
| Iowa | $59,252 | +$4,240 | $108,458 | +$7,029 |
| New Mexico | $59,233 | +$4,221 | $107,772 | +$6,344 |
| Utah | $59,221 | +$4,209 | $108,082 | +$6,654 |
| Arkansas | $59,213 | +$4,201 | $108,486 | +$7,058 |
| Vermont | $59,153 | +$4,141 | $106,261 | +$4,832 |
| North Carolina | $59,109 | +$4,097 | $108,315 | +$6,886 |
| Nebraska | $59,060 | +$4,047 | $107,846 | +$6,417 |
| West Virginia | $59,047 | +$4,034 | $107,810 | +$6,382 |
| Missouri | $59,005 | +$3,993 | $107,678 | +$6,250 |
| Wisconsin | $58,960 | +$3,948 | $107,183 | +$5,755 |
| Ohio | $58,806 | +$3,793 | $107,442 | +$6,013 |
| Oklahoma | $58,763 | +$3,751 | $107,587 | +$6,158 |
| Idaho | $58,726 | +$3,714 | $106,949 | +$5,521 |
| Montana | $58,716 | +$3,704 | $106,677 | +$5,249 |
| Colorado | $58,671 | +$3,659 | $107,239 | +$5,811 |
| Michigan | $58,656 | +$3,644 | $107,667 | +$6,238 |
| Georgia | $58,599 | +$3,586 | $107,055 | +$5,626 |
| Rhode Island | $58,572 | +$3,560 | $107,168 | +$5,739 |
| New Jersey | $58,491 | +$3,479 | $105,606 | +$4,177 |
| Pennsylvania | $58,488 | +$3,475 | $107,581 | +$6,153 |
| Kansas | $58,207 | +$3,195 | $106,221 | +$4,792 |
| Alabama | $58,108 | +$3,095 | $106,556 | +$5,128 |
| Virginia | $58,094 | +$3,082 | $105,980 | +$4,552 |
| District of Columbia | $58,093 | +$3,080 | $103,916 | +$2,488 |
| Illinois | $58,025 | +$3,013 | $106,511 | +$5,082 |
| Indiana | $57,962 | +$2,950 | $106,501 | +$5,072 |
| California | $57,952 | +$2,940 | $102,280 | +$852 |
| Connecticut | $57,843 | +$2,830 | $105,291 | +$3,863 |
| Maine | $57,833 | +$2,821 | $104,337 | +$2,909 |
| New York | $57,784 | +$2,772 | $105,538 | +$4,110 |
| Massachusetts | $57,718 | +$2,705 | $105,821 | +$4,393 |
| Minnesota | $57,686 | +$2,674 | $104,189 | +$2,761 |
| Delaware | $57,684 | +$2,671 | $104,632 | +$3,204 |
| Kentucky | $57,435 | +$2,423 | $105,359 | +$3,930 |
| Hawaii | $57,048 | +$2,036 | $103,473 | +$2,044 |
| Maryland | $55,994 | +$981 | $102,075 | +$646 |
| Oregon | $55,338 | +$326 | $100,195 | −$1,234 |
How the two tax systems differ
| Canada | United States | |
|---|---|---|
| Tax year | 1 January – 31 December 2026 | 1 January – 31 December 2026 |
| Filing a tax return | 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). | 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). |
| Consumption 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). | 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. |
| Retirement | 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. | 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. |
| Healthcare | 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). | 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. |
| Capital gains | One-half of a capital gain is included in taxable income and taxed at your marginal rate. | 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. |
Frequently asked questions
Is Canada or United States better for taxes?
At $100,000, United States leaves you $8,048 more per year after income and payroll taxes. The gap widens at higher incomes ($26,607 at $250,000).
How much is $60,000 after tax in Canada and United States?
$44,460 in Canada and $50,390 in United States.
Sources
Figures are taken from official government publications and were last reviewed on 2026-10-03.
- CRA – Tax rates and income brackets for 2026
- CRA – Indexation of personal income tax and benefit amounts
- CRA – T4032-ON Payroll Deductions Tables, January 2026
- CRA – T4127 Payroll Deductions Formulas, January 2026
- CRA – CPP contribution rates, maximums and exemptions
- CRA – EI premium rates and maximums
- European Central Bank – euro foreign exchange reference rates
- CRA – GST/HST calculator and rates by province
- CRA – T4037 Capital Gains
- CRA – Important dates for individuals
- Health Canada – Canada’s health care system
- Government of Canada – Pay and minimum wage (federal labour standards)
- Statistics Canada – Table 14-10-0064-01 Employee wages by industry, annual
- IRS Topic No. 751, Social Security and Medicare withholding rates
- IRS Topic No. 759, Form 940 – Federal Unemployment (FUTA) Tax Return
- IRS: 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500
- IRS Topic No. 559, Net Investment Income Tax
- IRS – Who should file
- U.S. Department of Labor – Minimum wage
- BLS – Usual Weekly Earnings of Wage and Salary Workers, Second Quarter 2026
- Rev. Proc. 2025-32 (2026 inflation adjustments incl. OBBBA)
- IRS: Tax inflation adjustments for tax year 2026, including OBBBA amendments