25-30 K What kinda life one can have in Ontario
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Posted on: 23-02-05 10:47:29
For a single person a CDN salary of 90 K Turned out to be around slightly less than 60K. In Hand I used to get 4800 / month.
So, yes taxes are huge in Canada.
How much does one have to pay yearly in taxes for owning a house (say a value of 200 K CDN)?
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Quote:
Orginally posted by DiogenestheCynic
Please also include other deductions of CPP and EI which are mandatory. As a general rule I have found that of the gross income that I make, my home take is only 52% of it. Given that amount of deduction, a 70K salary boils down to 36K which is not too "exaggerated"IMO.
At $70k gross, the total federal and provincial income taxes would amount to approximately $17k, which would leave you with $53k. (that tax liability could be further reduced by RRSP contributions and other tax breaks)
The difference between $53k and $36k is about $17k, while your CPP, EI, OHIP premium should not exceed about $4k in the aggregate.
If your total deductions are 52%, you are probably having too much tax withheld, you might want to check the payroll deduction tables available on the CRA website to ensure that the numbers are right (or perhaps you are including voluntary RRSP contributions made thru the employer in this 52%). In any event, even if excess tax is withheld, you will get a refund for it when your return is filed.
canada is incredibly socialized and hence the taxes are very high. They have far too many social programs and the working crowd pays a lot of tax which goes to the people depending on the govt to pay everything.
I plan to check the actual numbers soon but basically Australia, Canada and NZ all have high tax structures especially if one is employed. If one is self employed things work differently.
Quote:
Orginally posted by jake3d
Hey crenshaw,
with 70k income and if you max out your 18% rrsp...your disposable income( after deductions including provincial EI and govt pension plans) is around 35-40k right?. If you have a house you are subject to taxes and also evey time you make a purchase. Taking all this into consideration your disposable income is max around 35-40 k or less right?
I'm no tax expert so maybe theres another way to look at this ? Can some experts chip in too? Thanks
The 15k deposited into RRSP can hardly be considered a ‘tax’. Its really a $1k ‘saving’ per month! When I calculated $17k as the tax on $70k in income, I did not include the tax savings from any RRSP contributions - an RRSP contribution of $15k would bring tax liability down by about $5k odd!
Quote:
Orginally posted by dan
canada is incredibly socialized and hence the taxes are very high. They have far too many social programs and the working crowd pays a lot of tax which goes to the people depending on the govt to pay everything.
I plan to check the actual numbers soon but basically Australia, Canada and NZ all have high tax structures especially if one is employed. If one is self employed things work differently.
You might want to add the UK and much of Europe to that list!
If we are talking only income taxes, I also find many states in the US to be pretty comparable to Canada at personal income levels upto $100k.
The tax rates are high, no doubt, but its not different from any other part of the world when one considers the infrastructure.
Coming to think of it, when I started my career in India, I was hit with 44% income tax on a substantial part of my income that was over the lower slab limits..........money that I paid for crap!
To a degree, you are right about Canada being incredibly socialized though. I’m particularly ticked off having to pay the OHIP premium………and its going to get worse! As the Canadian baby boomers retire, they’re going to be getting their hips, knees and as**oles replaced, and we folks are going to have to fund it! Replusive!
crenshaw
i am not aware of the OHIP premium i thought it was free at least until 2002. can you update on how much does one have to pay ?
Yes Europe is socialize as well but i think canada is an extreme. Several countries in Europe have high tax rates e.g. Denmark and others too but not as high as Canada. The lack of a real private sector in Canada is the main reason while countries like Germany, france etc have vibrant private sectors.
i am surprised to hear that you paid such high taxes in India i thought it was 10%. I have never worked in India so i dont know.
Quote:
Orginally posted by crenshaw
The 15k deposited into RRSP can hardly be considered a ‘tax’. Its really a $1k ‘saving’ per month! When I calculated $17k as the tax on $70k in income, I did not include the tax savings from any RRSP contributions - an RRSP contribution of $15k would bring tax liability down by about $5k odd!
Cren, I agree..thats why i mentioned disposable income instead of Tax.
Taxes on homes(that a 70k income holder would likely have) would be about 5k at the least. So that negates the 5k amount that the person would have received by way of tax refund.
So in this scenario(53kafter tax-15krrsp cont), in the end the disposable income would be around 35-40 in any case right? Even if we do not calculate the gst/pst incurred while disposing off that income
. In the bigger picture, when I factor in the benefits associated with our system, I am happy to be able to be part of it...however, I was only wondering out aloud about the disposable income. I'd rather be here than be in india without many of the benefits that my family currently receives. Ofcourse, this is a personal view.
Basically, a pet peeve of mine is that this kind of taxation actually seems to make sure that the middle class always stays that way. Though not impossible, it takes a lot more effort to get out of the cycle(of living to work) by investing elsewhere...especially when your disposable income is required to maintain a middle-class standard of living. Am I incorrect in this assumption?
I'd love to hear that I am wrong.
That being said...I'm ready to put in that extra effort. I am aware that I'm lucky to be grumbling about issues like this.
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