1. What is US to Canada Pension Calculator?

This calculator converts US net salary to Canadian dollars (CAD), accounting for US taxes, FICA contributions, and 401k pension deductions. It helps individuals understand their equivalent take-home pay when considering relocation or financial planning between the US and Canada.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Pay USD — Annual salary before deductions in US dollars
• US Taxes — Total federal and state income taxes
• FICA — Social Security and Medicare taxes (7.65% of gross pay typically)
• 401k — Retirement plan contributions
• USD to CAD Rate — Current exchange rate (typically around 1.35)

3. Importance of Salary Conversion

Details: Accurate salary conversion is essential for financial planning when moving between countries, comparing job offers, or managing cross-border finances.

4. Using the Calculator

Tips: Enter all amounts in USD except the exchange rate. Use current exchange rates for most accurate results. Typical 401k contributions range from 3-10% of gross pay.

5. Frequently Asked Questions (FAQ)

Q1: What's included in US Taxes?
A: This should include federal income tax, state income tax (if applicable), and local taxes where relevant.

Q2: How do I estimate my FICA contributions?
A: FICA is typically 7.65% of gross pay (6.2% Social Security + 1.45% Medicare).

Q3: Where can I find current USD to CAD rates?
A: Check financial websites like XE.com or your bank's exchange rate page.

Q4: Does this account for Canadian taxes?
A: No, this calculates your US net pay converted to CAD. Canadian taxes would apply to this amount when earned in Canada.

Q5: What about other deductions?
A: This calculator focuses on major US deductions. You may need to account for health insurance or other benefits separately.