i know that business taxes are relatively low, but what about personal incomes taxes? how will this affect having to pay double taxes (both us and canada). i believe you can write off the taxes you pay overseas, but you have to pay the difference in us taxes.
You'll never pay a dime of US taxes, since Canada has a tax treaty with the US and income taxes in Canada are higher than those in the US. Also, Canada has higher gasoline and alcohol taxes and double digit sales taxes in most provinces. Also, tax deferred retirement plans have lower limits than the US.
That said, healthcare costs are minimal in Canada, which are a huge plus for entrepreneurs who may not always have a steady income stream.
That said, if you're moving from a high tax US state (CA) to a low taxes Canadian province (Alberta), the difference isn't that great.
Keep in mind that if you have a Roth IRA in the US, it gets complicated. Canada doesn't recognize Roth IRAs thus there are tax complications.
That's not true. You can only get an exclusion on the first $97,000USD you make outside of the US, so YMMV. In Vancouver or Toronto, you'd be pushing it.
Not true. The US and Canada has a tax treaty which means any Canadian taxes you pay count against US taxes owed. In other words, you only have to pay US taxes if your tax liability is lower than what it would be in the US.
Since Canadian income taxes are higher than US income taxes, you'll never have to pay US income taxes (baring some odd financial situation).
Yeah, income tax is mostly the same, but sales tax is killer. I pay nearly double sales tax in my current province compared to my home state/city... large tech purchases become a couple hundred dollars more.
