1. What is US to Canada Salary Conversion?

This calculator converts US net salary to Canadian dollars, accounting for US taxes and FICA contributions before applying the current exchange rate. It helps compare compensation between US and Canadian positions.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Pay USD — Annual salary in US dollars
• US Taxes — Total US federal and state income taxes
• FICA — Social Security and Medicare taxes (7.65% of gross pay typically)
• USD to CAD Rate — Current exchange rate (e.g., 1.35 means 1 USD = 1.35 CAD)

Explanation: The formula first calculates the actual take-home pay in USD after taxes, then converts this amount to Canadian dollars.

3. Importance of Accurate Conversion

Details: Proper salary conversion is essential for comparing job offers between countries, understanding purchasing power differences, and financial planning for international moves.

4. Using the Calculator

Tips: Enter gross salary in USD, estimated US taxes, FICA contributions, and current exchange rate. For most employees, FICA is 7.65% of gross pay (6.2% Social Security + 1.45% Medicare).

5. Frequently Asked Questions (FAQ)

Q1: Where can I find current USD to CAD exchange rates?
A: Check financial websites like XE.com, OANDA, or your bank's foreign exchange page for current rates.

Q2: Should I include state taxes in the US Taxes field?
A: Yes, include all income taxes (federal + state) that would be deducted from your US paycheck.

Q3: What about Canadian taxes on this converted amount?
A: This calculator shows pre-Canadian-tax amounts. You would still owe Canadian income taxes on this money.

Q4: How accurate is this for actual take-home pay?
A: It provides a good estimate but doesn't account for 401(k) contributions, health insurance premiums, or other deductions.

Q5: Does this work for hourly wages?
A: Yes, but first multiply hourly rate by estimated annual hours (typically 2080 for full-time) to get annual gross pay.