26% Federal + 11.16% Provincial = 37.16% http://www.cra-arc.gc.ca/tx/ndvdls/fq/txrts-eng.html
San Francisco: 28% Federal + 9.3%x(0.72) State = 34.7% <-- (9.3%x0.72 because you can deduct your state taxed amount in certain scenarios)
http://www.efile.com/tax-rate/federal-income-tax-rates/ https://www.ftb.ca.gov/forms/catxrate_exmpt07.shtml
Once you get above 174k/year, it's sill similar, with:
Waterloo: 29% Federal + 11.16% Provincial = 40.16%
San Francisco: 33% Federal + 9.3%x(0.72) State = 39.7%
So at 100k, Canadian taxes are very slightly higher higher, and is almost even at 174k.
If you're working at a startup, Canada may even be more advantageous because of how capital gains taxes are treated on privately held CCPC's. Also, you have health care. :)
Try re-calculating the tax rates if you have a non-working spouse (as was my case since I was on a work visa) and you're significantly better off in the U.S.
This is huge. Read as "the first $750K of your startup windfall is tax free".
I've updated the tax rates above to be more indicative of the adjusted rates in the best case scenario, but California vs. Canada is still VERY close.
Um, no. Even though SV is a high-cost location in a (relative to the U.S.) high-tax state, personal income taxes are still substantially higher in Canada. Housing might be somewhat more in Waterloo than in SV, but the net take home at the end of the year would still be higher.
Assuming you're married and can file a joint tax return w/ your spouse, the U.S. tax advantage goes up even more.
There is no question that if you want to make a lot of money in tech, the U.S. is still the place to be. I say this as someone who has lived and worked in Canada, Southern Californian and now Australia.