Should You Immigrate to the U.S. or Canada? The Most Satisfactory Answer

The U.S. and Canada are considered ideal destinations for immigration. While both are renowned for job opportunities, economic growth, and a higher quality of life, you will not know for sure until you experience it for yourself.

ImmiPath will help you make an informed decision on whether to immigrate to the U.S. or Canada with the facts listed below in the article.

When comparing, always consider the long-term impacts of factors such as affordability, quality of life, career development, and how you can maximize the benefits of each country!

1. Should You Immigrate to the U.S. or Canada for Job Security and Average Working Hours?

1.1 Working in the U.S.

The United States is considered the Silicon Valley of the world, with the majority of industries headquartered there. However, 2023 has brought disruptions even to the U.S. job market.

According to a report by Marketplace, one-third of the population is concerned about job security, including the possibility of job loss or wage reduction.

However, some jobs have remained unaffected by economic downturns, even during the pandemic, such as:

Job Title	Annual Salary
Home Health Aide	$24,200
Software Developer	$103,620
Registered Nurse	$107,030
Market Research Analyst	$63,120

Average Working Hours: According to data from the Bureau of Labor Statistics, employed Americans worked an average of about 34.4 hours per week in the U.S. in 2019.

1.2 Working in Canada

Due to the COVID-19 pandemic, Prime Minister Justin Trudeau has continued to focus on ensuring job security for both Canadian citizens and immigrants in Canada.

Thanks to Canada’s economic recovery policies, the country has shown a steady decline in unemployment rates. In 2019, Canada’s unemployment rate dropped to 5.67%.

In contrast, the U.S. registered an unemployment rate of 10.2% in 2020.

Here are some in-demand jobs in Canada for 2023:

Job Title	Annual Salary
Web Developer	$62,522
Healthcare Worker	At least $76,362
Restaurant Server	$24,668 – $30,377
Truck Driver	$45,825 – $77,903

Working in Canada, the unemployment rate will be lower.

 Key Takeaways:

• While the U.S. offers better salary packages, Canada provides better healthcare, more maternity leave, and additional social benefits.
• The average working hours in Canada are slightly higher than in the U.S.
• The annual leave structure in both countries is quite similar.

2. Should You Immigrate to the U.S. or Canada for Tax Rates?

2.1 Tax Rates in the U.S.

a. Income Tax: Income tax in the U.S. is divided into two components: Federal and State.

On average, a software engineer in the U.S. pays 25%–30% in income tax, including both federal and state taxes annually.

Did you know that employees working in Washington are exempt from paying state income tax? Below are some states and their corresponding state income taxes:

State	State Income Tax
California	1% to 13.3%
Minnesota	5.35% to 9.85%
New York	4% to 8.82%
Kansas	3.10% to 5.7%
Iowa	0.33% to 8.53%
Virginia	2% to 5.75%
Georgia	1% to 5.75%
Illinois	4.95%
Arizona	2.59% to 4.54%
Indiana	3.23%

b. Sales Tax

Sales tax applies to transactions of purchases made in the United States in every state. It is a state tax that varies by state. For example, the sales tax in New York state is 7%.

2.2 Tax Rates in Canada

a. Income Tax

A Canadian employee, regardless of their original nationality, must pay a federal income tax rate of 15% on their total income if their minimum salary is $46,605.

However, if an employee earns more than $46,605, the income tax payable increases accordingly.

In addition to federal taxes, a Canadian employee must also pay provincial taxes, which vary based on the minimum wage in their province.

Here’s a breakdown of provincial taxes:

Province/Territory	Provincial Tax Rate
Alberta	10-15%
British Columbia	5.06-16.8%
Manitoba	10.8%-17.4%
New Brunswick	9.68%-20.3%
Newfoundland and Labrador	8.7%-18.3%
Northwest Territories	5.9%-14.05%
Nova Scotia	8.79%-21%
Ontario	5.05%-13.16%
Prince Edward Island	9.8%-16.7%
Québec	15%-25.75%
Saskatchewan	10.5%-14.5%
Yukon	6.4%-15%

b. Goods and Services Tax (GST)

Canada has a fair GST system with certain healthcare-related items like medicine and dental services being exempt from GST as they are classified as “Zero-Rated” items. However, the federal tax rate varies across provinces, with a minimum GST rate of 5%.

c. Key Takeaways

Both the U.S. and Canada have federal and state/provincial taxes. However, certain states in the U.S., like Washington, do not require state income tax, offering a tax advantage compared to Canadian provinces where provincial tax is mandatory.

3. Should You Immigrate to the U.S. or Canada for Education?

3.1 Studying in the U.S.

The United States is home to eight Ivy League universities, including prestigious institutions such as Brown University, Columbia University, Cornell University, Harvard University, the University of Pennsylvania, Princeton University, and Yale University.

According to the QS World University Rankings, the U.S. has five of the top universities globally:

Rank	Institution	Location
1	Harvard University	Cambridge, MA
2	Stanford University	Stanford, CA
3	Massachusetts Institute of Technology (MIT)	Cambridge, MA
4	University of California, Berkeley (UCB)	Berkeley, CA
5	Columbia University	New York, NY

Note: The U.S. offers an Optional Practical Training (OPT) program for eligible F-1 students. This is a type of license that allows them to gain real-world work experience related to their field of study.

Here is a list of leading universities in the U.S. along with their average annual tuition fees:

University	Average Tuition (USD)
California Institute of Technology	$54,600
University of Washington	$38,796
Princeton University	$51,870
Massachusetts Institute of Technology (MIT)	$53,790
Harvard University	$51,925
University of California, Berkeley	$43,176
Stanford University	$53,529
Columbia University	$61,850

The United States provides free access to public schools for all children. The average cost for private elementary school tuition is $10,000 per year, while private high schools average around $15,000 per year.

3.2 Studying in Canada

University tuition in Canada is on average 27% cheaper than in the U.S.

Leading universities in Canada include McGill University, the University of Toronto, Université de Montréal, and Queen’s University, among others.

QS World University Rankings 2021 – Top 5 Universities in Canada:

Rank	Institution	Location
1	University of Toronto	Toronto, ON
2	McGill University	Montreal, QC
3	University of British Columbia	Vancouver, BC
4	Université de Montréal	Montreal, QC
5	University of Alberta	Edmonton, AB

Canada’s immigration system provides free access to public education for children up to 16 or 18 years old. However, private school tuition ranges from 8,000 CAD to 14,000 CAD per year.

Key Takeaways: 

• The U.S. has a greater number of globally ranked universities compared to Canada.
• However, average tuition fees in Canada are lower than those in the U.S.

4. Should You Immigrate to the U.S. or Canada for Immigration Pathways?

4.1 Pathways to Immigrate to the U.S.

When considering immigration to the U.S., there are several types of visas you can apply for, depending on your situation:

• F-1, J-1, M-1 Visas: For students pursuing higher education, high school, vocational training, or cultural exchange programs.
• E-1, E-2 Visas: Employment-based visas for workers.
• IR-1 and CR-1 Visas: For spouses of U.S. citizens.
• K-1 Visa: For fiancés of U.S. citizens to enter the U.S. and get married.
• I-130 (K-3) Visa: For spouses of U.S. citizens awaiting visa approval.
• EB-3 Visa: For skilled workers, professionals, and other workers.
• EB-5 Visa: For investors who make significant investments in the U.S. economy.
• F2-A Visa: For green card holders to bring their spouses to the U.S. from Vietnam.
• F-3 Visa: For U.S. citizens to sponsor their married children.
• F-4 Visa: For U.S. citizens to sponsor their siblings.

4.2 Pathways to Immigrate to Canada

Here are the types of visas you can apply for when considering immigration to Canada:

• Permanent Residency (PR) Visa
• Express Entry Visa
• Federal Skilled Worker Program (FSWP)
• Provincial Nominee Program (PNP)
• Family Sponsorship
• Visitor Visa
• Student Visa
• Business Immigration Visa

5. Cost of Living in the U.S. and Canada

ImmiPath has compiled a comparison of living expenses in the U.S. and Canada to give you a clearer perspective:

 

Expense Category	Canada (CAD)	The U.S. (USD)	Average Difference
Monthly Rent	$839.64	$833.32	29.61% higher in the U.S.
Public Transportation (Monthly)	$139.73	$107.85	Almost 0.01 % higher in the U.S.
Healthcare	Free public healthcare	Subsidized public healthcare	Higher in the U.S.
Groceries (Monthly)	$114.95	$91.07	$91.07
Clothing and Accessories	$64.22 – $126.69	$44.04 – $96.17	10.8% higher in Canada
Restaurants	$17 (Meal for 1 person)	$15 (Meal for 1 person)	9.94% higher in the U.S.
Luxury and Entertainment	Besides other somewhat expensive entertainment activities, you can buy a movie ticket here for only $10.76.	Luxury activities cost a little less than in Canada. A monthly gym membership costs about $37.	This is a specific genre. Therefore, an exact distinction cannot be provided.

 

Key Takeaways:

• While the average annual income is similar in both countries, Canada generally has a higher cost of living compared to the U.S.
• You will pay less for healthcare and rent in Canada, but utilities, gas, and consumer goods tend to be more expensive.
• Costs vary depending on the city you live in.

6. Challenges Faced by Immigrants Settling in the U.S. or Canada

6.1 Language Barriers

In Canada	In the U.S.
The dominant languages are English and French.	English is the dominant language.
Provinces like Quebec are predominantly French-speaking.	Globalization has made the U.S. a melting pot of various communities.
Vietnamese immigrants might face challenges in communicating with locals, especially in French-speaking regions.	Vietnamese immigrants often find it easier to adapt by connecting with their compatriots.

6.2 Academic Barriers

The Vietnamese education system typically focuses more on theoretical learning than on practical, in-depth experiences. As a result, Vietnamese students may initially struggle to adapt to the curricula in the U.S. and Canada.

The education systems in the U.S. and Canada are driven by extensive research and often require hands-on exposure within a limited time frame. Vietnamese students may need time to adjust to these new learning methods.

6.3 Racism

Both Canada and the United States have strict policies against all forms of racism.

However, due to the recent increase in racially motivated crimes in the U.S., Canada is considered a more immigrant-friendly country for settling down.

In June 2021, Prime Minister Justin Trudeau participated in an anti-racism protest in Ottawa to show his solidarity with those facing discrimination.

Key Takeaway: Both countries present unique challenges for Vietnamese immigrants. However, the number of Vietnamese immigrants in both nations has surged over the past decade.

7. Latest Updates on U.S. and Canada Immigration

7.1 U.S. Immigration Update 2022

• In the first quarter (Q1) of the Fiscal Year (FY) 2022, 228,133 individuals gained Legal Permanent Resident (LPR) status.
• Vietnam was among the top five countries of origin for new permanent residents in 2022.
• 24% of new LPRs in 2022 (Q1) obtained their status through employment-based preferences.

7.2 Canada Immigration Update 2023

• Canada is set to issue 431,645 permanent resident visas in 2023.
• Of these, 241,850 new arrivals will receive Canadian PR through economic immigration.
• Canada’s labor market added 337,000 jobs in February 2022, with an additional 73,000 jobs added in March 2023.

8. Some Frequently Asked Questions: Should You Settle in the U.S. or Canada?

8.1. Which is the Best City to Live in Canada?

Canada has recently been ranked as the #1 most livable country in the world.

Cities like Vancouver, Calgary, and Toronto are listed among the top 10 most livable cities globally according to the Global Liveability Index 2019.

Vancouver, British Columbia

Named after British Royal Navy officer George Vancouver, Vancouver is one of the most ethnically diverse cities worldwide. It offers a vibrant urban life paired with some of the most beautiful beaches and mountain ranges.

Calgary, Alberta

Known for its skyscrapers, Calgary is a dynamic city with youth-oriented policies that promote social welfare across all aspects. It’s an ideal hub for young professionals.

Toronto, Ontario

Famous for the CN Tower and its elite urban lifestyle, Toronto is the heart of Ontario. It is a major IT center, home to top universities, and hosts a diverse community, including a significant Indo-Canadian population.

8.2. Which are the Best Cities to Live in the United States?

Boulder, Colorado

Nestled at the base of the Rocky Mountains, Boulder offers stunning natural beauty and scenic attractions. It’s also a hub for students interested in Geology, with the University of Colorado Boulder being a leading institution for higher studies in this field.

Denver, Colorado

Denver, the capital city of Colorado, is rich in historical significance from the old world era and is known as “The Mile-High City.” It’s a vibrant cultural center for immigrants and is home to the University of Colorado, which is renowned for its MBA programs.

Austin, Texas

Home to the University of Texas, Austin is recognized as the live music capital of Texas. The city enjoys pleasant weather year-round and is known for producing revolutionary professionals. Its motto, “What starts here changes the world,” reflects its innovative spirit.

8.3. How Long Does USCIS Take to Process a Green Card Application in the U.S.?

USCIS currently uses an automated processing system. It takes from 7 to 33 months to process Form I-485, Application to Register Permanent Residence or Adjust Status.

The U.S. Citizenship and Immigration Services (USCIS) Pilot Program applies only to the following cases:

• Form N-400 for U.S. citizenship
• Form I-485 to register for permanent residence or adjust status
• Form I-90 to replace a green card
• Form I-751 to remove conditions on residence

8.4. Is Canada PR Better than H-1B?

Canadian PR (Permanent Residency) is better for ensuring overall safety and security. It also offers a faster path to Canadian citizenship. On the other hand, the H-1B visa for the U.S. is an ideal choice for exploring high-skilled job opportunities and ambitious career paths.

8.5. Can I Work in the U.S. with Canadian PR?

You can not work in the U.S. with Canadian PR alone unless you have an H-1B visa for the U.S.

8.6. Top 10 Most Desired Countries in the World

• Canada
• Japan
• Spain
• Germany
• Qatar
• Australia
• Switzerland
• Portugal
• United States
• United Kingdom

9. Should You Immigrate to the U.S. or Canada?

The U.S. and Canada are two of the most popular destinations for immigrants. However, choosing between them can be a challenging task.

Here is a quick comparison to help you evaluate and decide which country might be the best fit for you:

Comparison Index	The U.S.	Canada
Average Salary	$48,672 per year	$50,000 per year
Job Security	Job security in the U.S. can be precarious, with the potential for layoffs and a competitive job market	Canada generally offers better job security, and most people are able to retain their jobs
Taxes	Federal income tax rates range from 10% to 37%	Federal income tax rates range from 15% to 33%
Cost of Living	$10,000 to $18,000 per year	$24,000 to $30,000 per year
Healthcare	No free medical treatment, though healthcare can be subsidized	Universal healthcare system with free medical treatment
Permanent Residency Opportunities	Various visa options available, such as three-year visas for spouses of U.S. citizens, or at least five years for other visa categories before applying for U.S. citizenship	You can apply for Canadian citizenship after living in the country for 1,095 days within the last five years

If you are still unsure whether to choose the U.S. or Canada for immigration, work, or study, feel free to comment below. The ImmiPath team will provide support and advice based on the experience to help you choose the best country for your needs.