I originally thought that this was more commonplace for us Canucks than it was for our American brethren, but alas I have findings to point to the contrary. Yes it is true Canadians – Americans pay sales tax too. It’s just that the percentages seem to have one less digit than do ours.
In Canada taxes are calculated by federal sales tax, then provincial sales tax. Most provinces adopt a simple harmonized tax where they are added together to a round number like 15% and so calculations are not complex. I live in Quebec and they have given us the lovely prize of compounded tax. First your item costs $10, we then add the federal 5% for $10.50 then calculate the Quebec sales tax on the $10.50. I am sick of it to be honest. For the longest time we were static but now the federal government has lowered their tax a few times and it gets difficult to remember that it’s not $10 x 1.15025 anymore.
Come save me internets!!!
The pages comes in the form of a java applet from a group called Mind prod. They have an extensive number of applets available, but it was the tax calculators that got my attention from a Google search.
Canadian Tax Calculator
American Tax Calculator
These are excellent tools for someone who lives in an area where tax calculations are more than $5 on $100, but also very good for people who are traveling. Many of us buy things from other locations because we know of a deal there or we are on vacation in the area. It’s good to know that what we are buying really IS a good deal. It doesn’t matter how much the sticker cost is if when you add the tax there is a difference.
I also learned during the writing of this article that there are many states that also have local sales tax. I am not sure how the regions are split up but if you look at the website you will see that regions matter. This is definitely something to consider if you are staying in Maine for example. Great place to visit (we do often) but if we are going to make a purchase it will be in New Hampshire.
Another thing to consider is the exchange rate. Americans and Canadians traveling across the boarder experience this a lot. This of course doesn’t only apply to us but it’s something that I do every year, sometimes more than once a year. The best exchange page I have seen is from Oanda.
Happy traveling and Geek on!
