Question for residents of countries other than the US

[Beeman]

Just curious what type of income tax do you have? Do you have the equivelant of our Social Security/Medicare tax? How is your property taxed?

[tamatik]

our tax folks folks are nice enuf to attempt to tax you to death B4 you can get your old age security pension.of course, if you make it that far , theres a suppliment that can be applied for.School tax is the big portion of my property taxes.

[Beeman]

OK.... I'm guessing BC means you're in British Columbia, is this correct? I'd really like to compare percentages and deductions to get more of an apples to apples type of comparison.

You read posts about how other countries that have more social programs ar heavily taxed or how much gas tax is in other countries. You also can read posts on here about people that avoid paying income tax and other taxes by using all of the advantages they can gain. Do other countries afford you the advantages?

I live in a state that lives and dies by sales tax and invented" taxes. We have a 9.75% sales tax on everything in the county I live in, that's all goods and labor. We also have invented taxes like a wheel tax imposed on our license plate fees, an extra $40 now per year going to the schools. Do other countries have sales tax and taxes like the wheel tax created to cover a shortfall but without increasing property taxes?

Our Social security tax alone is 6.2% with the employer matching that and Medicare tax is 1.45% again with the employer matching it so there's an automatic 15.3% of a person's gross income going to a fund that might not last. This is not income tax which is additional to this and can be both federal and state with a local income tax in some cases. Also not counting the money the employer pays in federal and state unemployment taxes or workmen's comp payments.

[tamatik]

BC is british columbia canada.We have 8% sales tax.7% gst(goods and services tax) and odd things like eco charges(tax) on batteries.we have a tire tax..its sposed to be for recycling but they never get recycled.we have a recycling tax on cans bottles and refund price.eg,,bought a bottle of pop.$1 for pop..5 cents refundable deposit and 1 cent recycling/eco? fee.you can get your 5 cents back when you return it but not the 1 cent.
I beleieve theres also a tax on A/C for new cars.something like 2 or 3 hundred$.
When I bought my fresh water fishing license it cost $48 complete..some was license and the rest..about $15 is salmon enhancement tax.theres also a salt water fishing license.with additional taxes/fees for salmon and shellfish.So basically it costs me over $100 to get fishing licenses each yr.Of course, then we have the classified waters license.which is more$$.
My property taxes are about $600 a yr..but theres a homeowner grant that reduces that to about $400.
We had a primeminister awhile back who got voted in because he said he,d kill the gst.But when he got elected he said "but where will I get that $$$?" so we still have it.Go figure..a politition lying..whodathunkit?
Then theres the booze taxes.A 60oz of rye costs about $50 so I started making my own.cigarettes are over $7 for 20.havent figgered how to make smokes yet but I have a sister in ontario that sends me "indian" smokes for a bout $15 a carton.of course thats illegal.
My boy starts school tomorrow.There used to be a fee of around $50 for additional supplies etc but now its about $25.registration fee?and locker fee etc.
Then theres the airport improvement tax.not to be confused with the airport security tax.
Then.. heaven forbit you ever get convicted of any crime..Theres major fees involved AFTER you get a fine.Had a friend get convicted of DUI and he got a substancial fine.Plus suspension.Plus had to pay the $600 fee for the obligatory safe driving course as well as councilling fees.Those are what I call "self imposed" taxes.

[CJ]

Beeman, I thought TN was an income tax free state? Our home state (MO) has a steep income tax of 6%, but the rest of the taxes are quite low.

[Dirtslinger]

Then.. heaven forbit you ever get convicted of any crime..Theres major fees involved AFTER you get a fine.Had a friend get convicted of DUI and he got a substancial fine.Plus suspension.Plus had to pay the $600 fee for the obligatory safe driving course as well as councilling fees.Those are what I call "self imposed" taxes.[/QUOTE]

Sadly that's the first I've heard of a drunk driver getting a tough ride in BC. That is not the standard in BC by the way- I'd bet he's a repeat.

[Ramblin Wreck]

Originally Posted by CJ

Beeman, I thought TN was an income tax free state? Our home state (MO) has a steep income tax of 6%, but the rest of the taxes are quite low.

Ditto...on what your write about Tennessee and the 6% tax rate, which is what Georgia charges on the top end of the scale. Our sales tax is 7%, which seems awfully high given the income tax rate.

[moonwolf]

Ontario has 7% sales tax and 7% GST. Pretty much similar to what the B.C. poster for many other taxes, except we don't have saltwater fishing.

[The Paw]

My Canadian brethern are in error, the GST (a goods and services value added tax) has been 6% for the past year. All provinces except Alberta have sales tax, here in Manitoba, it is 7%

Like most jurisdictions, we have gasoline taxes and "sin taxes" incorporated into the price of liquor and tobacco. I don't really know the rates for these.

We have federal and provincial income taxes. The provincial income tax is usually calculated as a percentage of the federal tax. These are in a progressive tax structure, with the rate going up as you earn more, and offset by various tax credits or deductions which vary by the individual. I think the highest marginal tax rate is below 40%. I would guess that I pay about 20% of my income in income taxes, after all credits are applied.

Property taxes vary by municipality, by province, and by what your land is assessed at. Here in Manitoba, about half of your property tax goes to your municipal government, and about half to the local school board. For 155 acres of farmland with no buildings, I pay about $650 per year in property taxes.

[bobincolombia]

Great, a post I can actually contribute to, I've been driving the good people of the Ozarks and a few others crazy with questions lately.

We live 35 miles outside of Bogotá Colombia, (the capital) and yes, it's safe here, nothing like you hear about on TV, some areas of the country due have problems, but, just like when they are burning down Watts, you just don't go there.

Here there is no income tax for most people, income tax kicks in for the very wealthy, (for those that report income) instead of income tax they have a 16% sales tax, food is tax exempt, and booze I think is taxed at about 7%.

We pay real estate taxes but less than $600 a year on some commercial property in Bogotá that includes a restaurant we rent out and a house we use as a bed and breakfast & our office. Taxes on our farm for a 3200 sq. ft. home on about 6-7 acres is about $25.00 a year.

We have a few employees on the farm and a few in Bogotá at our business, to stay legal (which we prefer to do) you must give each employee a work contract which includes paying for their health insurance and pension. Still a bargain for a maid considering the minimum wage here is about $250.00 a month plus transportation cost for the month, farm workers and our bi-lingual secretary receive more.

In our area and many areas in Colombia we have no need for a furnace or air conditioning so thats 'a a lot of savings. Some areas you may need an air conditioner.

A lot of this may sound cheap, but nice items like appliances, electronics, clothes, cars, and a lot other stuff can be costly, for a low end item here, you would pay the price of a top of the line item if you bought it in the U.S. example of this is a nice coffee maker or four slice toaster, washing machines.

We travel back and forth about 3-4 times a year and need a truck when we arrive at the airport on return, and I've usually paid $100.00 or so for excessive baggage to American Airlines.

But it's nice living where it's spring all year.

[pigeonracer2k]

Don`t live in England anymore ( left 5 years ago ) but heres the deal. Income tax is on a sliding scale. You are allowed to earn so much before paying tax which is on a sliding scale of 25 -40%. Very little is offsetable against tax, not even mortgages.
Just about everything carries Value Added Tax which I beleive still stands at 17.5%. This is where the Government get clever because this tax is already added on to the price so you forget that you are paying it. Originally VAT was applied to luxury goods such as cars and TV but is now on Utility bills and clothes and soap powders.
Gas carries a tax on a tax so will now cost you about 9.50 a gallon, but the English gallon is 20% bigger. Cigarettes about $7.
Road tax ( like Tags ) $360
The great health service which they call free is in shambles. Free is not free. You will pay about 12% of your gross wage for it and employer pays about the same. If you earn over a certain income and it is not a high amount you will still pay for optical and dentist treatment as well as for prescriptions. If you want to see a doctor exp[ect to wait 3 or 4 days for an appointment, 6 months to see a consultant and if you need an operation theres another 18 months minimum. PLEASE the US health service is not perfect but dont fall for the Democrat spin. OUR health service is a joke- but please feel free to Google it and check out the real story.
When we left our council tax ( property tax ) was $3200 and we did not live in a palace.
I once sat down and worked it out and the Government will take back 85-90 in income tax, social security and all the hidden forms of taxation.

[Beeman]

Originally Posted by CJ

Beeman, I thought TN was an income tax free state? Our home state (MO) has a steep income tax of 6%, but the rest of the taxes are quite low.

Personal income tax
The Tennessee income tax does not apply to salaries and wages, but most income from stocks, bonds and notes receivable is taxable at a flat rate of 6 percent.
The first $1,250 in taxable income received by a single filer is exempt. The first $2,500 in taxable income received by a joint filer is exempt. Persons older than 65 and who have total income of less than $16,200 for a single filer or $27,000 for a joint filer also are exempt.
Tennessee tax returns are due on April 15, or the next business day if that date falls on a weekend or holiday. For the 2007 filing season, the deadline for federal returns was changed to Tuesday, April 17. The Department of Revenue is following the federal lead and also giving taxpayers an extra filing day to complete state returns.

This is an outline of TN's state income tax that many don't know exists. no we basically don't have an income tax on a working person's salary but as I said it's almost a 10% tax on everything you spend money on including all food and labor.

[bobincolombia]

Originally Posted by pigeonracer2k

The great health service which they call free is in shambles. Free is not free. PLEASE the US health service is not perfect but dont fall for the Democrat spin. OUR health service is a joke- but please feel free to Google it and check out the real story.

pigeonracer: A good friend of mine from Canada once told me about FREE health care, he said you would be surprised at how much something free can cost.

Looking to possibly move back to the U.S., one of the things I checked into was health insurance, I was ready to be sitting down when I received the cost for insuring 3 people.

I was actually surprised, it was a lot more reasonable than I imagined. For a good 80/20 plan with a $2000.00 per year deductible per person that includes unlimited office visits, $15.00 co-pay for generic prescriptions, choice of any Dr. or specialists, emergency room coverage etc. was $429.04 a month for 3 people, some policies were as low as $250.00 per month with less coverage and $900.00 per month and up for no out of pocket expense.

When I lived in the U.S. I had Co. paid insurance and I never had to pay anything, but I did not think that $429.04 a month for 3 people was considered a "health care crisis", and yes, most people I know ran to the Dr. everytime they had a sniffle because it was free and had 100% coverage, driving up the cost to todays level.

This cost can also vary from state to state.

I do not want everyone taxed to pay for my families insurance when they may be retired or have a smaller family, and I don't want to be taxed to pay for everyone else's larger families. I'll pay my own way.

[CJ]

No matter how hard I look and ask questions, when all the costs are figured in, I can't find a state that's overall cheaper than Missouri to live in. It's more expensive if you earn a higher salary because of the steep income tax, but if not, I don't think you can beat it. State tax on goods is 4.25 percent, real estate and personal property taxes are very low as well.

[WindowOrMirror]

We lived in Germany for a few years and the federal tax was much like ours, a poverty level below which you paid no tax, then a sliding scale. Difference was it went higher. Also, 5.5% reunification tax, 9%-11% church tax (depending on which you selected) and various other charges ("free state healthcare" ran around 10% unless you wanted picky little things like a private room in a critical care ward, things like that were extra).

It worked out to working through August for everyone else, and then making some for yourself each year.

R

[tamatik]

"My Canadian brethern are in error, the GST (a goods and services value added tax) has been 6%"

I stand corrected..I knew one tax was down but havent had the interest to look.
When I lived in Manitoba ..old house and 41 acres..the tax was $1800/yr..I complained and it was lowered to $1100/yr.I thought that was a bit brutal as it was very rundown house and out in the stix.

[Beeman]

Originally Posted by bobincolombia

pigeonracer: A good friend of mine from Canada once told me about FREE health care, he said you would be surprised at how much something free can cost.

Looking to possibly move back to the U.S., one of the things I checked into was health insurance, I was ready to be sitting down when I received the cost for insuring 3 people.

I was actually surprised, it was a lot more reasonable than I imagined. For a good 80/20 plan with a $2000.00 per year deductible per person that includes unlimited office visits, $15.00 co-pay for generic prescriptions, choice of any Dr. or specialists, emergency room coverage etc. was $429.04 a month for 3 people, some policies were as low as $250.00 per month with less coverage and $900.00 per month and up for no out of pocket expense.

When I lived in the U.S. I had Co. paid insurance and I never had to pay anything, but I did not think that $429.04 a month for 3 people was considered a "health care crisis", and yes, most people I know ran to the Dr. everytime they had a sniffle because it was free and had 100% coverage, driving up the cost to todays level.

This cost can also vary from state to state.

I do not want everyone taxed to pay for my families insurance when they may be retired or have a smaller family, and I don't want to be taxed to pay for everyone else's larger families. I'll pay my own way.

In hijacking my own thread I'd like you to please share what company gave you a quote like that for health insurance? I have employer provided health insurance but I have to pay part, my deductible is higher than that, my co pays are higher, my prescriptions are higher, and they limit well care payments and I pay almost $300 per mo. for my part. If health insurance for a family was as cheap as you quoted I would probably not be working where I work now as we have one of the better plans in the area.

[Ross]

Ontario sales tax is 8% GST 6% income tax is graduated, there can be a health care premium and most drugs etc. are not covered. The Liberal govt. actually cut health care coverage here in Ont. Canada has a different health care system in every province and territory all cover the federal standard or better.

[yuyay]

I'm in Korea right now.
As it stands, we pay:

2-3% in income tax (it can go as low as 1.4%, but it increases dramatically with income level)

Residence tax (10% of income tax, so about %0.3)

4.5% to pension and this is matched by our employer (we will be able to withdraw the full amount when we leave)

2.24% to health coverage (national, mandatory, matched by employer). When we see a doctor we pay 30% of the visit (usually about $3 of $10). Drugs and hospital treatment are the same (though some procedures are only covered up to 50%). The cost of drugs here isn't at North-American heights, so you generally don't pay more than $1 or $2 for a full run of a prescription.

There is a general consumption tax on non-food items, but don't buy enough to bother figuring that out.

Tarrifs make a lot of things very expensive here given the extreme protectionism and nationalism. Rice is much more expensive than in North America (Rice lobby...) Beef is unaffordable here (Australian is about $7.50 / kilo at the cheapest rate, but Korean (just because someone told them it's better) is 4 to 10 times the price and no better quality (Beef lobby...). Foreign cars are taxed 40%, but that's okay because someone told them all Korean cars are better than BMWs (Manufacturing lobby...). Imported clothes are taxed at 28%.

Infrastructure is in shambles here. Sewage is terrible. Schooling is free up to the end of elementary school and then the rest is paid at %50. There is no regulation or enforcement of anything here (those who can't do the manditory military service here generally get thrown into the police force which makes for a young, inexperienced irrelevant police force). There is NO regard for occupational health and safety; building codes and quality are downright scary. They have old people picking up garbage in the street with barbecue tongs for make work programs because they have no old age support. The disabled are thrown aside and left to beg in the subways. Tap water, though 'safe', is chock full of heavy-metally goodness.

All in all, taxes are low, but it shows.

[Jim S.]

Originally Posted by CJ

Beeman, I thought TN was an income tax free state? Our home state (MO) has a steep income tax of 6%, but the rest of the taxes are quite low.

It is income tax free and consistently ranks among the Top 5 lowest overall tax states in the U.S. Tennessee has been #1 at times in the past decade, and is currently #4, behind #3 Mississippi, #2 Alaska, and #1 Alabama, according to http://articles.moneycentral.msn.com...spx?page=2#XXX (Note, the article has inaccurate info, but the chart has been corrected.)

Missouri is in the lower-tax tier, but just barely at #35. Connecticut is the #1 high-tax state. No wonder my in-laws left there in 1968 to move to Tennesssee! But on the other hand, according to http://www.unm.edu/~bber/econ/us-pci.htm, Connecticut's per capita income in 2006 was $49,852; Tennessee's was $32,304; Mississippi $26,535; Alaska, $37,271; and Alabama, $31,295. So the argument could be made that, on a per-capita income vs. total taxation basis, Alaska is the best deal.

It all depends on how your stack the numbers.

In Tennessee, that "freedom" from income taxes means we are subject to a number of regressive taxes that hurt those of lowest incomes the most, i.e. "wheel tax" added to the price of each car tag, sales taxes, food sales tax equal to regular sales tax, etc. And for those who would argue that these are not regressive, I simply say that the percentage of total take-home real-dollar income spent by a poorer person on such "consumption" taxes is higher than the percentage spent by someone richer, simply because the richer folks spend a lower overall percentage of their total income on consumption than do poorer folks.

But back to my in-laws. When they sold out in Connecticut, the price of their farm there not only bought a place of equal size in Tennessee for cash, but also allowed them to sock away a tidy sum for retirement. That is perhaps the best way to retire. Spend your working years in a high-income state, buy appreciating assets with those funds, then cash them in and move to a lower-income and lower-tax state.