How does your income tax rate compare to other parts of Canada?


B00Mer
#1
How does your income tax rate compare to other parts of Canada?



Although federal income tax rates are the same across the country, where a person lives can have a significant impact on the total amount paid because provincial and territorial tax rates — and tax brackets — vary widely.

Exactly how much you will end up paying each year depends on where you live on Dec. 31.

Of course, the final tax bill depends on the tax credits a person is able to claim. But a person who earned $50,000 last year could expect to have a base tax bill of $11,747 in Quebec, the highest in the country.

The Maritimes have the next-highest tax rates — someone in Nova Scotia would pay a base $11,419 and a resident of Manitoba or P.E.I. would be on the hook for $11,378 in taxes.

That same person would incur just $8,349 in total income taxes if they lived in Nunavut.

The graph below shows how the base rate of federal and provincial income taxes Canadians pay in each province and territory at six different income levels for the 2011 tax year. Mouse over each income data point to get the specific numbers. Click on the coloured boxes to select or deselect individual provinces and territories.

(Note: The tax payable amounts do not include non-refundable tax credits other than the basic personal tax credit. The Ontario figures do not include the Ontario Health Premium.)



source: How does your income tax rate compare to other parts of Canada? - Business - CBC News

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Time to move to the Yukon.

..
 
Bar Sinister
#2
I expect income tax rates in the territories are kept low to compensate for the much higher cost of living in those regions. You might pay a lower tax percentage in the Yukon, but your living costs will be almost certainly higher than they are in southern Canada.

For low income families the best place to live might actually be Ontario where the tax on the first $39,020 of income are only 5.05%.

Here is a reference for tax rates in every part of Canada that might be a bit more accurate than the graph.
What are the income tax rates in Canada? (external - login to view)
 
JLM
#3
Quote: Originally Posted by Bar SinisterView Post

I expect income tax rates in the territories are kept low to compensate for the much higher cost of living in those regions. You might pay a lower tax percentage in the Yukon, but your living costs will be almost certainly higher than they are in southern Canada.

For low income families the best place to live might actually be Ontario where the tax on the first $39,020 of income are only 5.05%.

Here is a reference for tax rates in every part of Canada that might be a bit more accurate than the graph.
What are the income tax rates in Canada? (external - login to view)

Looks like Nunavut is lowest and B.C. is 2nd.
 
petros
#4
Quote:


I expect income tax rates in the territories are kept low to compensate for
the much higher cost of living in those regions.

That's what the Northern Allowance filed on the T2222 is for.
 
Bar Sinister
+1
#5  Top Rated Post
Quote: Originally Posted by JLMView Post

Looks like Nunavut is lowest and B.C. is 2nd.

True - but as i pointed out by southern Canadian standards the cost of living in Nunavut is horrendous. I'm guessing it would require about triple the income in Nunavut to live as comfortably as a resident of Ontario.
 
JLM
#6
Quote: Originally Posted by Bar SinisterView Post

True - but as i pointed out by southern Canadian standards the cost of living in Nunavut is horrendous. I'm guessing it would require about triple the income in Nunavut to live as comfortably as a resident of Ontario.

No argument, even at Red Earth Alberta my son recently paid $5 for 2 litres of pop.
 
JLM
#7
Quote: Originally Posted by Bar SinisterView Post

True - but as i pointed out by southern Canadian standards the cost of living in Nunavut is horrendous. I'm guessing it would require about triple the income in Nunavut to live as comfortably as a resident of Ontario.

I'm not sure any amount of income would do that. The idea of 3-4 weeks of real summer somehow doesn't appeal to most people.
 

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