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I noticed that we in Ontario pay a 13% sales tax on everything. Is it normal or pretty bad compared to other provinces and American states? I have long noticed that everything including food becomes much more expensive than it's mentioned price. We just pay it without pondering.
If I want to buy a playstation 4 it costs currently 450 dollars. And after tax it comes to 509! That's 59 dollars more. My friend went to this American state called New Hampshire and he bought a brand new PS4 for 450.
If this is so then I will make an annual list and go shopping once a year to New Hampshire. That'll save me the unnecessary spending and save me a 1000 odd dollars on tax.
Coming from Massachusetts, we only pay 6.25% in sales tax. Total. And America doesn't have a federal sales tax. Oh, and alcohol in Massachusetts is tax free. And Massachusetts has one of the highest taxes in America. Florida is only 6%. Washington DC is 5.75%. Oregon is 0%.
So short answer, yes, certain items like electronics, cars, clothing (in Boston any clothing under $175 is tax free...), luxury items are more expensive in Canada.
Most consumer products are more expensive in Canada. Some are of similar prices (such as Iphones and Ipads!).
Canadians typically pay 12-15% sales tax. An exception is Alberta where total sales tax is 5%.
Americans pay 0-10% sales tax. States with no sales taxes include NH, OR, DE, as well as Montana and Alaska. I think LA has a sales tax of 9% (was 8.25% when I was there), Chicago is 9.25%. Some small cities in CA has 10% sales tax. But more typically about 6%.
It is nice that in many American cities, clothes are tax exempt (for pieces under $110 or so in NYC for example). I wish Canada can adopt that policy to give consumers a break but I am dreaming. Our government won't miss a chance to tax more.
Additionally, online shopping in America is a lot more advanced, with massively more choices (not 10 times as population indicated, probably 50 times or even more), so a lot of online deals. Many online retailers offer free shipping, something rare in Canada. I often compare with prices and usually it is cheaper to buy from the US and having it shipped to Canada instead of buying from Canada retailers.
Coming from Massachusetts, we only pay 6.25% in sales tax. Total. And America doesn't have a federal sales tax. Oh, and alcohol in Massachusetts is tax free. And Massachusetts has one of the highest taxes in America. Florida is only 6%. Washington DC is 5.75%. Oregon is 0%.
So short answer, yes, certain items like electronics, cars, clothing (in Boston any clothing under $175 is tax free...), luxury items are more expensive in Canada.
Wow. Yeah, after doing some research, you are correct. But why is it so? There must be some catch?
There could be things that are cheaper in Canada.
And what about small business. If I wish to start a small business do Americans have it much easier? Because here it is a headache. Have you heard of the term red tape? It defines canadian government I feel.
Additionally, online shopping in America is a lot more advanced, with massively more choices (not 10 times as population indicated, probably 50 times or even more), so a lot of online deals. Many online retailers offer free shipping, something rare in Canada. I often compare with prices and usually it is cheaper to buy from the US and having it shipped to Canada instead of buying from Canada retailers.
Yea, I don't understand why people still go to big box retailers like Future Shop, Best Buy... And RadioShack is already going out of business. Amazon all the way. People in countries like China have even more advanced online buying options: the online marketplace Alibaba (soon to be the largest IPO in history) alone offers 5 different Amazon-like marketplaces, with many offering freesame day and next day shipping (with over $170 billion in sales in 2012... more than Amazon+eBay combined...
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Have you heard of the term red tape? It defines canadian government I feel.
Ummm, yea... we have heard of "red tape"... I think as long as you are human you have experienced some degree of red tape in this world, regardless of which country you live in. U.S. government red tape is legendary. With the exception of shutting down the entire federal government and pushing our economy on the verge of chaos, the current U.S. Congress basically made no noticeable reforms within the last two years (with the exception of Obama Care, which has had more than its share of troubles... long story... sigh). If you ask the millions of immigrants trying to get into the U.S., they can all easily attest the horrendous inefficiency and backlogs in the system. I personally know some immigrants to America who had to wait 10+ years just to get their green card/permanent residency (vs. Canada's 2-4 years average). In America, health care is a mess, public education is a mess, and immigration is a total mess. Period.
I went to school in Germany for several years and even they had a morbidly obese bureaucratic engine. Horrendously high taxes (19% sales tax across Germany) with rigid bureaucracy. Officials there do everything by the book, following every rule, every municipal by-law to the letter with no mercy.
Yes, with a few exceptions, goods and services are more expensive. It can be as little as a 10% difference, or even be up to double the price. It depends on what specific product or service exactly we are talking about. There are also fewer 'deals' compared to the US, and it is common to pay for 'extras' that are standard when buying in the US.
Yes, with a few exceptions, goods and services are more expensive. It can be as little as a 10% difference, or even be up to double the price. It depends on what specific product or service exactly we are talking about. There are also fewer 'deals' compared to the US, and it is common to pay for 'extras' that are standard when buying in the US.
And this is probably most pronounced in airfares... just look at the highway robbery rip-off fares that Air Canada can get away with...
Just did price search on the following 2 routes: YYZ-YVR and BOS-YVR, November 17-21, prices including taxes:
United Airlines: Boston to Vancouver Round-trip: $418 USD
Air Canada: Toronto to Vancouver Round-trip: $586 USD
And this is on Air Canada's cheapest Tango fares, which accruals only 25% air miles, while United gives 100% mileage redemption and is still cheaper (and happens to be an international flight...). Go figure. U.S. domestic flights are even cheaper by comparison - one can easily get a round trip coast to coast flight for less than $300 or $400, taxes inclusive.
Yea, I don't understand why people still go to big box retailers like Future Shop, Best Buy... And RadioShack is already going out of business. Amazon all the way. People in countries like China have even more advanced online buying options: the online marketplace Alibaba (soon to be the largest IPO in history) alone offers 5 different Amazon-like marketplaces, with many offering freesame day and next day shipping (with over $170 billion in sales in 2012... more than Amazon+eBay combined...
Ummm, yea... we have heard of "red tape"... I think as long as you are human you have experienced some degree of red tape in this world, regardless of which country you live in. U.S. government red tape is legendary. With the exception of shutting down the entire federal government and pushing our economy on the verge of chaos, the current U.S. Congress basically made no noticeable reforms within the last two years (with the exception of Obama Care, which has had more than its share of troubles... long story... sigh). If you ask the millions of immigrants trying to get into the U.S., they can all easily attest the horrendous inefficiency and backlogs in the system. I personally know some immigrants to America who had to wait 10+ years just to get their green card/permanent residency (vs. Canada's 2-4 years average). In America, health care is a mess, public education is a mess, and immigration is a total mess. Period.
I went to school in Germany for several years and even they had a morbidly obese bureaucratic engine. Horrendously high taxes (19% sales tax across Germany) with rigid bureaucracy. Officials there do everything by the book, following every rule, every municipal by-law to the letter with no mercy.
And this is probably most pronounced in airfares... just look at the highway robbery rip-off fares that Air Canada can get away with...
Just did price search on the following 2 routes: YYZ-YVR and BOS-YVR, November 17-21, prices including taxes:
United Airlines: Boston to Vancouver Round-trip: $418 USD
Air Canada: Toronto to Vancouver Round-trip: $586 USD
And this is on Air Canada's cheapest Tango fares, which accruals only 25% air miles, while United gives 100% mileage redemption and is still cheaper (and happens to be an international flight...). Go figure. U.S. domestic flights are even cheaper by comparison - one can easily get a round trip coast to coast flight for less than $300 or $400, taxes inclusive.
I was about to suggest, try YYZ-YVR and EWR-SEA. Then you shall know the meaning of being hosed.
I live in Houston, some of my parents live on Vancouver Island. I can fly from Houston to Vancouver for about $850 return. Last Christmas I flew from Houston to Seattle for under $300. Make that for a family, and by the time I included hotel, car rental, etc I was still over $1000 ahead.
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