Canada vs Australia: Tax Comparison

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On a $100,000 salary, you'd take home $71,980 in Australia versus $70,904 in Canada.

Australia

$71,980

+$1,076/year

Canada

$70,904

That's $90 more per month in Australia

Side-by-side breakdown

Highest Take-Home

Australia

2025-26

28.0%

effective tax rate

Take-home
$71,980

$5,998/mo

Income 25% Social 2% Other 1%

Canada

2025 · Ontario

29.1%

effective tax rate

Take-home
$70,904

$5,909/mo

Income 16% State 7% Social 4% Other 1%

Tax rate by income level

Effective Tax Rate by Income

Shows effective tax rate (total tax / gross income) at different income levels in USD

Understanding the difference

Life & Taxes

Chasing the Maple or Sun

Whether you are a digital nomad seeking Australia's surf culture or a professional drawn to Canada's cosmopolitan cities, both nations are magnets for talent. The move is usually driven by a desire for a high standard of living, with Australia attracting those who love the heat and Canada welcoming those who prefer distinct seasons.

Vibes and Daily Life

Life in Canada often revolves around cozy local bistros and a polite, community-focused atmosphere, while Australia offers a rugged, outdoor-centric lifestyle where the weekend starts at the beach. You'll find that while Australia feels like a perpetual summer holiday, Canada provides a more structured, urban-sophisticated pace of life.

The Tax Man's Approach

Australia keeps things simple with a single national system, while Canada adds a layer of complexity with regional taxes like those in Ontario. If you're a high earner, you'll notice Australia's top rates are significantly steeper, whereas Canada's federal system spreads the burden across more moderate brackets.

Safety Nets and Healthcare

Your tax dollars buy peace of mind in both hemispheres, though the mechanisms differ; Australia uses a specific Medicare Levy while Canada integrates social funding through pension and insurance contributions. Both countries ensure that a trip to the hospital won't break the bank, reflecting a shared commitment to public well-being.

The Bottom Line

Australia is the winner for those who want a straightforward tax filing and don't mind paying more for sunshine and social security. Canada is the better fit for families and mid-range earners who appreciate more nuanced credits and don't mind navigating both federal and provincial paperwork.

Detailed tax breakdown

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