Canada vs United States — Tax Comparison 2026
Canada: 14%–33% across 5 brackets. United States: 10%–37% across 7 brackets. Compare take-home pay side by side for employees and contractors.
At $100,000 equivalent income, an employee in Canada takes home $80,257 vs $79,180 in United States. For contractors, take-home is $77,737 in Canada compared to $74,255 in United States.
Estimates based on 2026 rates and approximate exchange rates. Actual take-home varies by individual circumstances.
USD amounts use approximate exchange rates (CAD: 0.7152, USD: 1.0000). Local currency figures are exact.
| Metric | Canada | United States |
|---|---|---|
| Gross (CAD/USD) | $139,826 | $100,000 |
| Gross (USD) | $100,000 | $100,000 |
| Income Tax | $21,836 | $13,170 |
| Social Security | $5,770 | $6,200 |
| Health Insurance | $0 | $1,450 |
| Net (CAD/USD) | $112,221 | $79,180 |
| Net (USD) | $80,257+$1,077 | $79,180 |
| Effective Rate | 19.7% | 20.8% |
Gross (CAD/USD)
Canada
$139,826
United States
$100,000
Gross (USD)
Canada
$100,000
United States
$100,000
Income Tax
Canada
$21,836
United States
$13,170
Social Security
Canada
$5,770
United States
$6,200
Health Insurance
Canada
$0
United States
$1,450
Net (CAD/USD)
Canada
$112,221
United States
$79,180
Net (USD)
Canada
$80,257
+$1,077United States
$79,180
Effective Rate
Canada
19.7%
United States
20.8%
Where identifiable, mandatory health contributions are shown separately. For other countries, health coverage is included in the Social Security amount.
Bottom Line
At $100,000/year income
Canada gives you $1,077 more per year ($90/mo) as an employee
Canada gives you $3,482 more per year ($290/mo) as a contractor
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How Taxes Work
Canada Tax System
Employee
- ·Federal income tax (2026).
- ·Basic personal amount C$16,452.
- ·First bracket reduced to 14% (from 15%).
- ·CPP1: 5.95% on C$3,500–C$74,600.
- ·CPP2: 4% on C$74,600–C$85,000.
- ·EI: 1.63% up to C$68,900.
- ·Provincial taxes not included.
Contractor
- ·Self-employed pay both CPP shares: CPP1 11.9% on C$3,500–C$74,600, CPP2 8% on C$74,600–C$85,000.
- ·No EI required.
- ·Same federal brackets (14% first bracket).
- ·Provincial taxes not included.
United States Tax System
Employee
- ·Federal income tax (2026, single filer).
- ·Standard deduction $16,100.
- ·Social Security: 6.2% (capped at $184,500).
- ·Medicare: 1.45% (no cap) + 0.9% Additional Medicare Tax above $200,000 — shown as health insurance.
- ·State taxes not included.
Contractor
- ·Self-employment tax on 92.35% of net earnings.
- ·Social Security: 12.4%, capped at $184,500.
- ·Medicare: 2.9% + 0.9% Additional Medicare Tax above $200,000 — shown as health insurance.
- ·Half of SE tax (SS + Medicare) is deducted from taxable income.
- ·State taxes not included.
Full Canada Tax Calculator →
Detailed breakdown with custom income
Full United States Tax Calculator →
Detailed breakdown with custom income
Visa Options
Frequently Asked Questions
Do Canadians or Americans pay more tax on remote work income?
- ·Canada has higher marginal rates (up to 33% federal, plus provincial) and CPP/EI contributions.
- ·The US has lower federal rates but adds state taxes (varying by state) and FICA.
- ·At $100K USD, Canada typically takes more.
- ·The gap widens at higher incomes due to Canada's steeper brackets.
How do self-employment taxes compare between Canada and the US?
- ·Canada charges CPP1 (11.9% on $71,300-$5,300) + CPP2 (8% on next $9,200) + EI (reduced for self-employed).
- ·The US charges 15.3% in payroll taxes (Social Security + Medicare) on net earnings.
- ·At most income levels, US self-employment tax is higher due to the uncapped Medicare portion.
Can I work remotely across the US-Canada border?
- ·The US-Canada tax treaty helps avoid double taxation, but you're typically taxed where you physically work.
- ·Neither country has a digital nomad visa.
- ·Canada offers the IEC Working Holiday Visa for eligible nationalities.
- ·The US requires work visas (H-1B, O-1, E-2) for employment.