Moving to Canada from the US: What Happens to Your Pay
Updated May 31, 2026 · 7 min read
The US and Canada feel similar, but the move changes your pay in a few specific ways. You’ll generally trade a little more tax for universal healthcare — and swap a single state tax for two layers of income tax.
The headline: a bit less take-home, no insurance bill
On a like-for-like 100k salary, Canadian take-home is around 74% (Ontario) versus roughly 79% in a no-tax US state — see US vs Canada salary. But Canada’s taxes fund public healthcare, so there’s no separate insurance premium.
What changes in your pay
- Two layers of income tax. Federal (15%–33%) plus a provincial tax that varies a lot — Alberta is light, Quebec heavy.
- CPP and EI replace FICA. CPP (5.95% up to C$71,300) and EI (1.64% up to C$65,700) instead of Social Security + Medicare.
- Basic personal amount (~C$16,129) works like the US standard deduction.
- RRSP instead of a 401(k) for tax-advantaged retirement saving.
The big one for US citizens: you still file US taxes
Like anywhere, US citizens keep filing a US return on worldwide income even while living in Canada — though the US–Canada tax treaty and foreign tax credits generally prevent double taxation. Also note some provinces have a short healthcare waiting period after you arrive.
💸 Moving money between countries?
Moving savings from a US bank to a Canadian one — or getting paid across the border — A service like Wise gives you the real mid-market exchange rate with low, transparent fees — typically far cheaper than a high-street bank, and it works across the US, UK, Australia and Canada.
Run your numbers
Model your Canadian offer with the Canadian calculator, compare it to your US pay with the US calculator, or see the full take-home by country picture.
Calculate your own take-home pay
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