Canada vs Washington: Taxes & Take-Home Pay 2026
On a $100,000 salary you keep $71,132 in Canada and $77,793 in Washington — $6,661 more per year in Washington ($555 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 | Washington | Difference |
|---|---|---|---|
| $40,000 | $31,484 (21.3% tax) | $33,765 (15.6% tax) | -$2,281 |
| $60,000 | $44,460 (25.9% tax) | $49,558 (17.4% tax) | -$5,098 |
| $75,000 | $55,012 (26.7% tax) | $60,552 (19.3% tax) | -$5,540 |
| $100,000 | $71,132 (28.9% tax) | $77,793 (22.2% tax) | -$6,661 |
| $150,000 | $101,428 (32.4% tax) | $111,711 (25.5% tax) | -$10,282 |
| $250,000 | $156,575 (37.4% tax) | $180,243 (27.9% tax) | -$23,668 |
- Canada total tax rate
- Washington total tax rate
Where the money goes at $100,000
- Canada
- Washington
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 Washington
- Washington does not tax wages or salaries.
- In 2026 the Paid Family and Medical Leave premium rises to 1.13% of wages. Employees pay 71.43% of it (about 0.81%), on wages up to the $184,500 Social Security cap.
- Workers also pay 0.58% of all wages, with no cap, to the WA Cares Fund long-term care program.
- Washington taxes long-term capital gains at 7%, and at 9.9% on gains over $1 million, above an annual standard deduction ($278,000 for 2025).
- At 9.57%, Washington's average combined sales tax rate is among the highest in the U.S. (Tax Foundation midyear 2026).
Salary needed to keep the same take-home
If you move between Canada and Washington, 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 Washington needs | Difference |
|---|---|---|---|
| $50,000 | $37,859 | $45,185 | −$4,815 (-9.6%) |
| $75,000 | $55,012 | $66,967 | −$8,033 (-10.7%) |
| $100,000 | $71,132 | $90,341 | −$9,659 (-9.7%) |
| $150,000 | $101,428 | $134,645 | −$15,355 (-10.2%) |
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 | Washington |
|---|---|---|
| $40,000 | 30.7% | 21.0% |
| $75,000 | 30.3% | 31.0% |
| $100,000 | 37.2% | 31.0% |
| $150,000 | 41.2% | 33.0% |
| $250,000 | 46.2% | 34.9% |
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).
Washington (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.
Typical pay and minimum wage
| Canada | Washington (US) | |
|---|---|---|
| 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) |
US figures are national; many states and cities set a higher minimum wage.
Canada vs Washington city by city
Washington has no income tax on wages, so take-home pay is the same across the state — but sales tax, rent and prices are not. On $75,000 you keep $55,012 in Canada. Washington also deducts Paid Family & Medical Leave (employee share) (0.81%) and WA Cares Fund (long-term care) (0.58%).
| City | Take-home on $75k | vs Canada | Sales tax | Median rent / month | Price level (US = 100) | Take-home in national prices |
|---|---|---|---|---|---|---|
| Seattle | $60,552 | +$5,540 | 10.55% | $2,007 | 111.1 | $54,486 |
- Washington does not tax wages or salaries.
- In 2026 the Paid Family and Medical Leave premium rises to 1.13% of wages. Employees pay 71.43% of it (about 0.81%), on wages up to the $184,500 Social Security cap.
- Workers also pay 0.58% of all wages, with no cap, to the WA Cares Fund long-term care program.
- Washington taxes long-term capital gains at 7%, and at 9.9% on gains over $1 million, above an annual standard deduction ($278,000 for 2025).
How the two tax systems differ
| Canada | Washington (US) | |
|---|---|---|
| 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 Washington better for taxes?
At $100,000, Washington leaves you $6,661 more per year after income and payroll taxes. The gap widens at higher incomes ($23,668 at $250,000).
How much is $60,000 after tax in Canada and Washington?
$44,460 in Canada and $49,558 in Washington.
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
- Washington Paid Leave: 2026 updates
- WA Cares Fund: Employers
- WA Dept. of Revenue: Capital gains tax
- Tax Foundation: State and Local Sales Tax Rates, Midyear 2026 (as of July 1, 2026)
- 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