 |
Key Differences Following are some of the key differences in the tax systems between
Canada and the US: 2006 Tax Brackets
Canadian Taxable Income
|
Per Return
|
US Taxable Income
|
Single Person
|
|
0 - 36,378
|
16%
|
0 - 7,550
|
10%
|
|
36,379 - 72,756
|
22%
|
7,551 - 30,650
|
15%
|
|
72,757 - 118,285
|
26%
|
30,651 - 74,200
|
25%
|
|
118,286 +
|
29%
|
74,201 - 154,800
|
28%
|
|
|
|
154,801 - 336,550
|
33%
|
|
|
|
336,551 +
|
35%
|
Deductions
|
Canada
|
US
|
|
Standard Deduction/ Personal Exemption
|
8,012
|
7,950
|
|
Mortgage Interest
|
X
|
Yes
|
|
Property Taxes
|
X
|
Yes
|
|
Auto Registration
|
X
|
Yes
|
|
Provincial/State Taxes
|
X
|
Yes
|
|
Medical Expenses
|
3% Threshold
|
7.5% Threshold
|
|
Charitable Contributions
|
75% of Income
|
50% of Income
|
|
Contributions to Political Parties
|
Yes
|
X
|
|
Safety Deposit Box
|
Yes
|
Yes
|
Tax Slip
|
Canada
|
US
|
|
Wages/Bonus/Commissions
|
T4
|
W-2
|
|
Self-Employment
|
T4(A)
|
1099-MISC
|
|
Interest
|
T3, T5
|
1099-INT
|
|
Dividends
|
T3, T5
|
1099-DIV
|
|
Social Security
|
T4A(P)
|
SSA-1099
|
|
Canada Pension Plan
|
T4A(P)
|
NR4
|
|
Old Age Security
|
T4A(OAS)
|
NR4(OAS)
|
|
Company Pension
|
T4A
|
1099-R
|
|
RRIF
|
T4RIF
|
NR4
|
|
RRSP
|
T4RSP
|
NR4
|
|
|
