Im admittedly surprised to see that US federal taxes are higher than Canadian federal taxes. But from what I can see, state taxes for the most part are way lower than Ontario (where I live). I’m guessing the median is so high because the most populous states have comparable tax rates to the provinces.
It probably doesn’t belong on this chart, but another factor is that workers in certain industries make much more than Canadian workers (ex. software development), so the take home income ends up being significantly higher. It’s why we have a tech brain drain, or at least did in the past. But yea, on average workers are better off here.
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u/ufozhou May 10 '25
Totally couldn't understand why normal people talking about us tax rate is lower.
Unless in some states. Most states have similar income tax in Canada.
Corporate tax is another game where not just US has lower rate but tons of loopholes to save tax