US vs Canada Salary: Who Takes Home More?

Updated May 31, 2026 · 6 min read

The US and Canada share a border and a lot of culture, but the way they tax your salary is quite different. If you’re weighing a move — or just an offer on either side of the border — here’s how your take-home pay compares.

Same 100k salary, side by side

United States ($100,000, no state tax): roughly $78,700 take-home — about 79%. Federal income tax (~$13,600) plus FICA ($7,650).
Canada (CA$100,000, Ontario): roughly CA$74,400 take-home — about 74%. Federal + Ontario tax, plus CPP and EI.

On the same nominal number, the American keeps more — and the gap widens in a no-income-tax US state like Texas or Florida.

But the comparison isn’t that simple. Two big factors close the gap: (1) Canada’s taxes help fund universal healthcare, while a US worker typically pays separately for health insurance (often $2,000–$8,000+ a year out of pocket); and (2) a high-tax US state like California can erase the US advantage entirely.

What else to weigh

The exchange rate. $100,000 USD is worth far more than CA$100,000 — so a like-for-like role usually pays a higher number in Canada, narrowing the real difference.
State vs province. US state tax ranges 0%–13%+; Canadian provincial tax also varies a lot (Alberta is low, Quebec is high).
Cost of living & benefits. Healthcare, childcare, parental leave and retirement systems differ in ways a paycheck comparison can’t capture.

The honest verdict

Headline take-home favours the US, especially in low-tax states — but once you account for health insurance and the exchange rate, many roles come out broadly similar. Canada trades a bit more tax for universal healthcare and a stronger safety net.

Run your own numbers