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Taxes in Canada vs US
Old 10-20-2007, 09:40 AM   #1
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Taxes in Canada vs US

Hi all,
I have a chance to both retire (at a later date) in Canada and get Canadian PR. I'm applying for the PR soon. I taught at a university and internationally for a number of years, so a Canadian university is making it a bit easy for me to do some part time lecturing and teaching at the same time while working on my PR application. I like Canada, and appreciate the more relaxed lifestyle.

I'm having second thoughts. however. I have a nice personal retirement plan already that is taxed only on the earnings. If I lived in the States, my retirement income taxable would maybe be only 7 or 8%. I've heard some stories that retirement income can be taxed as high as 30% as a single person. Is that correct?

There is also the possibility that I might get married with a woman who works at the same school as I do, and she's Canadian. We could live in the States, and she might work on her US green card. However, we both prefer Canada. Is there quite a tax break for married couples in Canada? How does that work?

The part about Canada I like is the free health care, however slow. But if the 2 of us lived in the States, we'd pay less taxes and perhaps need to but our own health care. Are there any of you out there that actually are Americans retired in Canada? Do you ever have any regrets?


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Old 10-20-2007, 10:42 AM   #2
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Old 10-20-2007, 06:48 PM   #3
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A bit of news to add to your considerations:

It looks like the Canadian taxation system will finally be recognizing Roth IRAs as 'pensions' and not taxing the earnings:

Serbinski Accounting Firms :: View topic - New protocol to US-Canada tax treaty agreed

The US/Canada tax treaty had previously NOT allowed earnings in Roth IRAs to go untaxed if you were subject to Canadian taxation. This is great news for myself and the other Canadian board members with substantial Roth IRAs accumulated while working in the US.
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Old 10-20-2007, 07:41 PM   #4
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Originally Posted by Rob View Post
But if the 2 of us lived in the States, we'd pay less taxes and perhaps need to but our own health care.
Something else to consider: the weather in the States is much nicer than Canada. While it's true that some Canadians winter in Florida, etc., they have to maintain a residence in Canada too ... if you move back to the States on a permanent basis, you'll only need to buy and maintain one home, which will typically save a lot of $ and hassles.
"If at any times we must deal in extremes, then we prefer the quiet, good-natured hypocrite to the implacable, turbulent zealot of any kind. In plain terms, we are not so fond of any set of notions, as to think them more important than the peace of society". John Toland, The Description of Epsom (1711)
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