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comparing tax in united kingdom with canada

United KingdomCanadaDifference in Canada
Gross Income 30,000.00 GBP / 30,000.00 GBP 53,357.01 CAD / 30,000.00 GBP - 0.00 GBP
Tax Due 4,879.28 GBP / 4,879.28 GBP 17,414.12 CAD / 9,791.10 GBP + 4,911.82 GBP
Net Income 25,120.72 GBP / 25,120.72 GBP 35,942.89 CAD / 20,208.90 GBP - 4,911.82 GBP
Overall Tax Rate 16.3 % 32.6 % + 16.30 %.

Figures based upon 1 GBP = 1 GBP.

Figures based upon 1 CAD = 0.5622504 GBP.

In United Kingdom, an income of 30,000.00 GBP / 30,000.00 GBP is more than the lowest average advertised salary of 12,757.00 GBP / 12,757.00 GBP and less than the country's average income of 33,000.00 GBP / 33,000.00 GBP.

In Canada, an income of 53,357.01 CAD / 30,000.00 GBP is more than the lowest average advertised salary of 29,660.00 CAD / 16,676.35 GBP and less than the country's average income of 56,000.00 CAD / 31,486.02 GBP.

Here are how much some common purchases cost in United Kingdom vs Canada:

United KingdomCanadaDifference in Canada
Water Bottle (1.5L) 0.95 GBP / 0.95 GBP 2.22 CAD / 1.25 GBP + 0.30 GBP
Milk Bottle (1L) 0.90 GBP / 0.90 GBP 2.27 CAD / 1.28 GBP + 0.38 GBP
Pint of Beer 3.50 GBP / 3.50 GBP 6.00 CAD / 3.37 GBP - 0.13 GBP
Bread (500g) 0.98 GBP / 0.98 GBP 2.77 CAD / 1.56 GBP + 0.58 GBP
Chicken Breasts (1kg) 5.67 GBP / 5.67 GBP 13.10 CAD / 7.37 GBP + 1.70 GBP
Petrol UK Gallon 5.68 GBP / 5.68 GBP 5.64 CAD / 3.17 GBP - 2.51 GBP
Volkswagen Golf or Equivalent 18,000.00 GBP / 18,000.00 GBP 25,000.00 CAD / 14,056.26 GBP - 3,943.74 GBP
Broadband Internet Monthly 30.21 GBP / 30.21 GBP 73.69 CAD / 41.43 GBP + 11.22 GBP
Rent One Bedroom Apt. In City (Monthly) 722.24 GBP / 722.24 GBP 1,218.19 CAD / 684.93 GBP - 37.31 GBP
Purchase One Bedroom Apt. In City 139,346.55 GBP / 139,346.55 GBP 200,098.85 CAD / 112,505.66 GBP - 26,840.89 GBP

Part of Europe, United Kingdom covers an area of 241,917 square kilometers.

United Kingdom has a Gross Domestic Product (PPP) of 2,787.74 ($ Billion) from a population of 65,511,098.

A progressive tax system with 3 bands with tax rates from 20% to 45%.

Personal tax-free allowance provided of 12,570 GBP.

Personal allowance is reduced by 1 GBP for every 2 GBP over 100,000 GBP.

Tax bands are as follow:

Below 37700 GBP - 20%

Between 37700 GBP and 125140 GBP - 40%.

Above 125140 GBP - 45%.

Mandatory social security contributions (National Insurance) Class A bands are as follow:

Below 12584 GBP - 0%

Between 12584 GBP and 50284 GBP - 8%.

Above 50284 GBP - 2%.

Source: https://www.gov.uk/government/organisations/hm-revenue-customs.

Source: XE.com (Currency Conversion).

Source: SalaryExplorer.com (Averages from average salaries in major job categories).

Source: Numbeo.com (Cost of living).

Part of North America, Canada covers an area of 9,156,521 square kilometers.

Canada has a Gross Domestic Product (PPP) of 1,674.31 ($ Billion) from a population of 36,626,083.

Federal taxes are joined by provincial taxes in this 5 band progressive tax system - jointly ranging from 20.05% to 46.16% plus surcharges.

Federal taxes are as follow:

Below 53359 CAD - 15%

Between 53359 CAD and 106717 CAD - 20.5%.

Between 106717 CAD and 165430 CAD - 26%.

Between 165430 CAD and 235675 CAD - 29%.

Above 235675 CAD - 33%.

For Canada we are using the Ontario province for comparative purposes.

Ontario provincial taxes are as follow:

Below 51446 CAD - 5.05%

Between 51446 CAD and 102894 CAD - 9.15%.

Between 102894 CAD and 150000 CAD - 11.16%.

Between 150000 CAD and 220000 CAD - 12.16%.

Above 220000 CAD - 13.16%.

Ontario also has a surcharge where the provincial taxes exceed 5,554 CAD (20%) or 7,108 (56%).

Social security contributions are the Canada pension plan (CPP): 5.95% (Max 3,867.50 CAD) and employment insurance: 1.66% (Max 1,049.12 CAD).

The Basic Personal Amount (BPA) is a tax credit that reduces the federal tax bill. It is income-assessed and federally the maximum credited is 15,705 CAD.

From gross incomes over 173,205 CAD the BPA is reduced. The minimum BPA is 13,521 CAD.

The BPA tax credit applies at the lowest federal tax bracket of 15%.

Another Basic Personal Amount (BPA) is a provincial a tax credit that reduces the provincial tax bill. In Ontario the maximum credited is 12,399 CAD.

A tax credit is also applied of 15% of the amount contributioned to the Canada pension plan (CPP) and employment insurance (EI).

A tax credit is also applied of 5.05% of the amount contributioned to the Canada pension plan (CPP) and employment insurance (EI).

Source: http://www.cra-arc.gc.ca/tx/ndvdls/fq/txrts-eng.html

Source: XE.com (Currency Conversion).

Source: SalaryExplorer.com (Averages from average salaries in major job categories).

Source: Numbeo.com (Cost of living).

Help

This calculator allows you to calculate income taxes and social contributions equivalent for United Kingdom and Canada and allow comparison between both. You can choose the preferred currency for the input amounts and displayed calculation. For example: If you choose GBP as your preferred currency, then the income entered will be converted to United Kingdom's and Canada's native currencies for the calculation so that correct income equivalent is used. The results will then be shown in the native currencies and GBP.

How we compare world taxes

We have trawled through the quagmire of tax legislation for 16 of the World's major economies and created a comparable position as close to the UK's PAYE (Pay As You Earn) system for employed people.

We look at each country's taxation for employed people, as well as things like medical care which are part of social contributions for some countries or require mandatory purchase of health insurance.

Combining this information lets us calculate taxes for each of the 16 countries and then do not only a taxation comparison but also a comparison of buying power based upon commonly purchased items.

It is quick and easy to use and you can get a detailed result at the click/tap of a button!

Compare tax using these examples:

We currently support the following countries - by clicking on the links below you can just do an individual tax calculation for those countries - or scroll up and compare tax between two countries directly!

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