Canada has been a dream destination for immigrants. Owing to the infrastructure, the locale and the weekend destination galore, Canada is one of the primary choices among people who wish to stay abroad. But before taking the plunge, it is really important to understand how the finances should look.
Survival Expenses Vary from City to City- Toronto is most expensive Place
Canada could be an expensive country, depending on the place you choose to stay and work. Do not forget the exchange rates, which could make a significant difference to your finances. Add to it the liabilities that you may have bear. For instance, in a city like Toronto or Montreal, a 1BHK could cost you anywhere between $987 to $1633. Meals for two can cost anywhere between $60-$70. Transportation may vary from $83-$143.25. So, be careful which city you choose to live in. Some of the most expensive cities in Canada include Vancouver, Toronto, Victoria, Calgary and Hamilton-Burlington.
If you choose to stay in any of the above-mentioned cities, your expenses can shoot manifold, between $50,000 to $70,000, including rent, if you plan to settle with a family of four.
Salary that you should look for a decent life in Canada?
It is important to understand that your salary should be at par with the cost of living in the city. Ideally, the companies you choose to work for compensate for the city you live in. But, do not settle down for anything below the above-mentioned figures.
Do not forget to consider these factors while settling in Canada
One of Canada’s major attractions is the free healthcare facility, which is not what it seems. You do not pay any direct fee to the doctor or the hospital you are walking in since that is taken care of by the tax that you provide the government. On an average, a person has to pay $ 12,000 per year to maintain the no-cost system to maintain a family of four.
Canadians enjoy a free public school education, unless you want to enroll your child to a private institution. Universities in Canada are cheaper as compared to universities in Europe and the USA.
Income Tax payable by you on Salary in Canada
Taxes are deducted at source, which is often paid every two weeks. Independent workers and entrepreneurs must set aside money for taxes or make payments in advance. These taxes cover things such as access to public schools, healthcare and childcare. So, here is a basic tax structure:
- CAN$50,000: federal rate of 20.5%, provincial rate of 9.15% (29.65% total)
- CAN$25,000: federal rate of 15%, provincial rate of 5.05% (20.05% total)
- CAN$100,000: federal rate of 26%, provincial rate of 11.16% (37.16% total)
So, decide your stay accordingly and make ample calculations to be able to live generously.