TABLE H2
INTERPROVINCIAL COMPARISONS OF TAX RATES
(Rates as of March 1, 1997) 1
Tax |
2
British
Columbia |
Alberta |
Saskat-
chewan |
Mani-
toba |
On-
tario |
Quebec |
New
Bruns-
wick |
Nova
Scotia |
Prince
Edward
Island |
New-
found-
land |
| Personal income tax |
| Percentage of Basic Federal Tax 3 |
51.0 |
45.5 |
50.0 |
52.0 |
49.0 |
n/a |
63.0 |
58.5 |
59.5 |
69.0 |
| Flat Tax 4 |
n/a |
0.5 |
2.0 |
2.0 |
n/a |
n/a |
n/a |
n/a |
n/a |
n/a |
| Surtax 5 Rate |
30/24.5 |
8 |
10/15 |
2 |
20/16 |
n/a |
8 |
10 |
10 |
n/a |
Threshold |
$5,300/
$8,745 |
$3,500 |
$1/
$4,000 |
Net
Income
>$30,000 |
$4,650/
$7,270 |
n/a |
$13,500 |
$10,000 |
$12,500 |
n/a |
Provincial Personal income tax
(per cent of family income) 6 |
5.9 |
5.7 |
7.9 |
7.3 |
5.6 |
8.5 |
7.2 |
6.7 |
6.8 |
7.9 |
Corporation income tax (per cent
(per cent of taxable income) 7 |
| General Rate
| 16.5 |
15.5 |
17 |
17 |
15.5 |
8.90 |
17 |
16 |
15 |
14 |
| Small Business Rate
| 9 |
6 |
8 |
9 |
9.5 |
5.75 |
7 |
5 |
7.5 |
5 |
| Corporation capital tax 8 |
| Non-financial
| 0.3 |
Nil |
0.6 |
0.3/0.5 |
0.3 |
0.64 |
0.3 |
0.25 |
Nil |
Nil |
| Financial
| 1.0/3.0 |
2.0 |
3.25 |
3.0 |
1.12 |
1.28 |
3.0 |
3.0 |
3.0 |
4.0 |
Health care premiums 9
Individual/family |
36/72 |
34/68 |
Nil |
Nil |
Nil |
Nil |
Nil |
Nil |
Nil |
Nil |
| Payroll tax 10 (per cent) |
Nil |
Nil |
Nil |
2.25 |
1.95 |
4.26 |
Nil |
Nil |
Nil |
2.0 |
| Insurance premium tax
(per cent) 11 |
2-3 |
2-3 |
2-3 |
2-3 |
2-3.5 |
2-3 |
2-3 |
3-4 |
3 |
4 |
| Fuel tax (cents per litre) |
| Gasoline 12 |
11.0 |
9.0 |
15.0 |
11.5 |
14.7 |
19.0 |
10.7 |
13.5 |
12.0 |
16.5 |
| Diesel
| 11.5 |
9.0 |
15.0 |
10.9 |
14.3 |
16.9 |
13.7 |
15.4 |
12.5 |
16.5 |
| Sales tax (per cent) 13 |
| General rate
| 7 |
Nil |
9 |
7 |
8 |
6.5 |
8 |
8 |
10 |
8 |
| Liquor
| 10 |
Nil |
7 |
7 |
12 |
6.5 |
8 |
8 |
37.5 |
8 |
| Meals
| Nil |
Nil |
Nil |
7 |
8 |
6.5 |
8 |
8 |
10 |
8 |
| Accommodation
| 8 |
5 |
9 |
7 |
5 |
6.5 |
11 |
11 |
10 |
12 |
Tobacco tax (dollars per carton
of 200 cigarettes) 14 |
22.00 |
14.00 |
19.20 |
18.45 |
5.95 |
6.70 |
10.20 |
10.58 |
12.05 |
24.40 |
| 1 |
Rates shown are those known as of March 1, 1997, and that are in effect for 1997. Quebec surtaxes, which contribute to the Province's Anti-Poverty Fund in 1997, 1998 and 1999, are not included. These surtaxes are applicable to provincial personal income tax (0.3 per cent), corporate income tax (2.8 per cent) and corporation capital tax for financial institutions (3 per cent). |
| 2 |
British Columbia tax rates are shown as announced in the 1997 Budget.
|
| 3 |
Quebec has its own income tax system which is not directly comparable. Alberta, Saskatchewan, Manitoba, Ontario, Quebec and Nova Scotia provide general tax reductions at low income levels.
|
| 4 |
Percentage of taxable income in Alberta and percentage of net income in Saskatchewan and Manitoba.
|
| 5 |
Provincial high income surtaxes: the surtax rate is applied to provincial tax in excess of the threshold level (the Manitoba surtax applies to net income over $30,000). British Columbia and Ontario have two-tiered surtaxes. Saskatchewan's Deficit Surtax is 10 per cent of basic provincial tax.
|
| 6 |
Calculated for a two income family of four with one spouse earning $35,000 and the other earning $20,000, both with employment income and claiming basic personal credits and typical major deductions.
|
| 7 |
Alberta, Ontario, Prince Edward Island and Newfoundland have lower rates for manufacturing and processing.
|
| 8 |
The British Columbia non-financial rate applies to corporations with paid-up capital in excess of $1.5 million; Ontario has lower rates for corporations with less than $2.3 million in taxable capital; Manitoba has a $2 million exemption level and the higher rate applies to paid-up capital in excess of $10 million; Saskatchewan has a $10 million deduction. Large Saskatchewan resource corporations are assessed a surcharge on the value of Saskatchewan resource sales. Ontario and Quebec have an additonal surcharge or compensation tax on financial institutions.
|
| 9 |
British Columbia has a two person rate of $64. British Columbia and Alberta offer premium assistance in the form of lower rates or an exemption from premiums for lower income individuals and families.
|
| 10 |
Manitoba, Ontario and Newfoundland provide payroll tax relief for small businesses.
|
| 11 |
The lower rate applies to premiums for life, sickness and accident insurance; the higher rate applies to premiums for property insurance. The rate on automobile insurance is 4 per cent in British Columbia and Saskatchewan, and 3 per cent in Ontario. Sales tax applies to insurance premiums, except those related to individual life and health, in Ontario (8 per cent), Quebec (9 per cent) and Newfoundland (12 per cent). The sales tax is reduced to 5 per cent for automobile insurance in Quebec and Ontario.
|
| 12 |
Tax rate is for regular fuel used on highways. The British Columbia rate includes two cent per litre dedicated to the Transportation Financing Authority. The rates do not include regional taxes. The Quebec rate includes estimated sales tax. |
| 13 |
The rates for New Brunswick, Nova Scotia and Newfoundland will be effective April 1, 1997. On that date these provinces' sales taxes will be harmonized with the federal goods and services tax at an 8 per cent rate.
|
| 14 |
Includes estimated provincial sales tax where applicable.
|
BC
Ministry of Finance and Corporate Relations