https://neuvoo.ca/tax-calculator/Ontario-100000#:~:text=%245....
Taxes are killer in the Great White North.
Fortunately this pays for an extensive social security network including health care (though sadly not dental!)
The motto of Canada is “Peace, order and good government,” which is in stark contrast to America’s “Life, liberty and the pursuit of happiness.”
or prescriptions
https://www.canada.ca/content/dam/cra-arc/formspubs/pub/t412...
Formula is a bit complicated
Just focus on Ontario and BC, these will be sufficient for most tech immigrants.
The reality is the disparity in income has a much larger impact on quality of life than a few thousand dollars paid in taxes.
(I assumed the low income person was working full time at minimum wage, and used the default $100,000 as a higher income. Quebec was ignored since people are less likely to move there unless they speak French or are employed in certain industries.)
It also looks like your accomodation is just randomly costed - there is huge varation in type/location and this is probably the single biggest expense.
I tried to comment on the rent cost. Its roughly the cost of a 2bdr place in the Vancouver area. I would like to expand it to show more cities, and it seems others would like that as well. I can look at adding specific expense data for a few cities (probably Vancouver, TO, and maybe Montreal)
Also, I threw $100k into the EY online tax calculator - https://www.eytaxcalculators.com/en/2020-personal-tax-calcul... - and it claims you'd have $77,410 left after federal and provincial taxes in BC (getting into RRSP contributions etc just makes things complicated).
non taxable expenses = RRSP + CPP + EI (plus anything else you add to the list)
I'll look at revising the instructions to make it more clear that the tables below directly impact the calculation. Would that help?
That said, depending on your age, with a max RRSP contribution of 27k, if you can contribute the max for 20yrs, you should have enough to retire on RRSP alone, assuming reasonable retirement living.
Assuming you contribute $27230/yr for 20yrs, and manage to get 5% growth on that account each year, you would end up with about $1m in the RRSP. It all depends on how much time you have to grow the account I guess.
Another thread pointed out it's a max contribution of 18% of last year's income (which is then limited to 27k), so you need to make around $150k CDN to make the max contribution.
TFSA works the other way. It's a tax shelter for growth. You've already paid income tax on the capital, but don't pay any tax on gains you manage to make when you withdraw. If you withdraw below the contribution limit you can top it back off as well, so a TFSA is a good place to save things like house and car down payments (though it's even better if you have enough money to just leave it alone).
I'm guessing most users going into tech would likely make at least $150k/yr, so they would be eligible to make the max contribution for the year. Good point about the 100k default base salary though. I didnt realize it was min(18% prev yrs salary, $27230.00), thats good to know, thanks!
Actually, this is a nice clean layout and workflow. Nothing to be ashamed of at all.
The thing it's missing, that was the big issue when I looked into relocating, is that my and my wife's jobs don't reimburse the same in Ca.
That's the biggest impact, above and beyond everything else.
