DTGeek
Active Member
If you live in NYC the combined effective tax rates from the three levels of government (fed, state, city) are higher than income taxes here.
Same in several other states, here in California the top income tax bracket pays 51.9%. In Ontario it's only 29% federal + 13.16% provincial totaling 42.16%. There are of course differences in sales tax, things like medicare tax (2.35%), and some of the provinces with higher tax rates while some US states don't have state taxes. But the idea that US has low tax rates compared to Canada seems like a bit of an urban legend. Especially with taxes having been raised in recent years.
(Heck, the top US federal bracket of 39.6% plus medicare is 41.95% -- so even states with *no* state tax pay essentially the same tax as Ontarians at the top end.)