Quoting: Juice
Happy to be proven wrong here as I've been battling with a lot of people that the state taxes are very much a factor...but I have the following:
Canadian Federal Taxes: 32.67%
Ontario Provincial Taxes: 15.08%
US Federal Taxes: 37.32%
Florida State Tax: 0%
$9.5m taxed at 37.32% = $5,954,600
Working backwards and using the Canadian/Ontario tax percentages, you need to make $11,396,399.37 to get the same net pay in Toronto that you would on $9.5m in Tampa
This is ignoring any type of 401k, CPP...and also ignoring the jock tax which means you pay income taxes to the states where you're earning that money....so I think the actual gap is even smaller.
Again..happy to be corrected if my math is off. I'm more interested in learning how big the chasm is between the two cities
Quoting: Juice
Happy to be proven wrong here as I've been battling with a lot of people that the state taxes are very much a factor...but I have the following:
Canadian Federal Taxes: 32.67%
Ontario Provincial Taxes: 15.08%
US Federal Taxes: 37.32%
Florida State Tax: 0%
$9.5m taxed at 37.32% = $5,954,600
Working backwards and using the Canadian/Ontario tax percentages, you need to make $11,396,399.37 to get the same net pay in Toronto that you would on $9.5m in Tampa
This is ignoring any type of 401k, CPP...and also ignoring the jock tax which means you pay income taxes to the states where you're earning that money....so I think the actual gap is even smaller.
Again..happy to be corrected if my math is off. I'm more interested in learning how big the chasm is between the two cities
I'm not sure as far as Canadian taxes go, but despite Kucherov falling into the top tax bracket, it isn't a constant 37% tax on all of his earnings.
The first 10,000 he makes are only taxed 10%, the next 30,000 are taxed at 12%, etc.
If you add all the lower tax brackets up, his first 500,000 is taxed at roughly 28.7% and then everything above that is taxed at the 37% level.
(500,000 x .713) + (9,000,000 x .63) = 6,026,500
6,026,500 / 9,500,000 = 36.56% tax rate on Kucherov's contract, but obviously that changes based off of the total value of the contract.