Will the Canadian tax on my benefits be higher than the U.S. tax?
For 1996 and 1997, when the U.S. withheld tax from your U.S. social security benefits, your Canadian tax on those benefits will not be any more than the U.S. tax you have already paid. For the future, the Canadian tax you pay will reflect your total income. This means that the Canadian tax on your benefits may be higher than the U.S. tax now is. This is because total Canadian tax rates (including provincial tax) are usually higher than the U.S. withholding rate. However, if your income is very low you will pay little or no tax on your U.S. social security benefits.
