How to calculate income taxes for Canada and USA and for both Federal and State/Province. Everything you need to know to calculate how much income tax you will owe based on where you are. In the video we go through an example. Knowing how much you will spend in income tax based on location can give you ideas on how to save money by moving to a State/Province that would have a lower income tax!

For your State/Province specific tax bracket, google the name of your State/Province and then "income tax brackets" and information from your specific state will show up.

Some people think that if they go into the next tax bracket that they will pay that tax rate on ALL of their income that is NOT the case! It is ONLY on the income in that marginal tax bracket that you pay that higher rate on.

Example in the video:
For 40k Income
Canada Federal=40k*0.15=$6k
Canada Alberta Province=40k*0.1=$4k
USA Federal=3480+1100=$4580
11k*0.1=1100
40k11k=29k
29k*0.12=3480
USA Minnesota=1608.75+675.24=$2284
30,070*0.0535=1608.75
40k30070=9,930
9,930*0.0680=675.24