TABLE H3
COMPARISON OF PROVINCIAL AND FEDERAL TAXES BY PROVINCE -- 1997

Tax		British Columbia	Alberta	Saskat- chewan	Mani- toba	On- tario	Que- bec	New Bruns- wick	Nova Scotia	Prince Edward Island	New- found- land
Two Income Family of Four     -- $90,000
1.	Provincial Income Tax	6,797	6,486	8,984	8,990	6,530	11,071	8,396	7,796	7,930	9,196
	Net Child Benefits	0	0	--	--	--	(540)	0	--	--	--
2.	Property Tax
	-- Gross	2,460	2,200	3,650	4,100	2,740	2,900	2,340	2,591	2,400	1,555
	-- Net	1,990	2,200	3,650	3,850	2,740	2,900	2,340	2,591	2,400	1,555
3.	Retail Sales Tax	1,059	15	1,252	1,165	1,436	1,392	1,689	1,715	1,598	1,654
4.	Fuel Tax	165	135	225	173	221	285	161	203	180	248
5.	Provincial Direct Taxes	10,011	8,836	14,111	14,178	10,927	15,108	12,586	12,305	12,108	12,653
6.	Health Care Premiums/Payroll Tax	864	816	--	2,025	1,755	3,375	--	--	--	1,350
7.	Total Provincial Tax	10,875	9,652	14,111	16,203	12,682	18,483	12,586	12,305	12,108	14,003
8.	Federal Income Tax	13,727	13,727	13,727	13,727	13,727	13,727	13,727	13,727	13,727	13,727
9.	Net Federal GST	1,518	1,631	1,444	1,468	1,549	1,388	1,478	1,501	1,453	1,447
10.	Total Tax	26,120	25,010	29,282	31,398	27,958	33,598	27,791	27,533	27,288	29,177
Two Income Family of Four     -- $55,000
1.	Provincial Income Tax	3,222	3,133	4,323	3,990	3,096	4,685	3,981	3,696	3,759	4,360
	Net Child Benefits	0	102	--	--	--	(472)	0	--	--	--
2.	Property Tax
	-- Gross	1,850	1,300	2,400	2,850	2,400	1,900	1,504	2,003	1,500	1,100
	-- Net	1,380	1,300	2,400	2,600	2,400	1,900	1,504	2,003	1,500	1,100
3.	Retail Sales Tax	792	11	961	905	1,081	1,116	1,292	1,305	1,218	1,275
4.	Fuel Tax	165	135	225	173	221	285	161	203	180	248
5.	Provincial Direct Taxes	5,559	4,681	7,909	7,668	6,798	7,514	6,938	7,207	6,657	6,983
6.	Health Care Premiums/Payroll Tax	864	816	--	1,238	1,073	2,063	--	--	--	825
7.	Total Provincial Tax	6,423	5,497	7,909	8,906	7,871	9,577	6,938	7,207	6,657	7,808
8.	Federal Income Tax	6,508	6,508	6,508	6,508	6,508	6,508	6,508	6,508	6,508	6,508
9.	Net Federal GST	1,135	1,215	1,108	1,140	1,166	1,112	1,131	1,142	1,107	1,115
10.	Total Tax	14,066	13,220	15,525	16,554	15,545	17,197	14,577	14,857	14,272	15,431
Two Income Family of Four     -- $30,000
1.	Provincial Income Tax	1,258	1,040	1,336	940	314	(627)	1,553	1,443	1,467	1,701
	Net Child Benefits	(718)	(240)	--	--	--	(472)	(52)	--	--	--
2.	Property Tax
	-- Gross	1,850	1,300	2,400	2,850	2,400	1,900	1,504	2,003	1,500	1,100
	-- Net	1,380	1,300	2,400	2,600	2,400	1,900	1,504	2,003	1,500	1,100
3.	Retail Sales Tax	526	8	696	639	767	834	913	920	859	953
4.	Fuel Tax	165	135	225	173	221	285	161	203	180	248
5.	Provincial Direct Taxes	2,611	2,243	4,657	4,352	3,702	1,920	4,131	4,569	4,006	4,002
6.	Health Care Premiums/Payroll Tax	864	816	--	675	585	1,125	--	--	--	450
7.	Total Provincial Tax	3,475	3,059	4,657	5,027	4,287	3,045	4,131	4,569	4,006	4,452
8.	Federal Income Tax	2,540	2,540	2,540	2,540	2,540	2,540	2,540	2,540	2,540	2,540
9.	Net Federal GST	301	383	349	351	372	378	345	351	327	323
10.	Total Tax	6,316	5,982	7,546	7,918	7,199	5,963	7,016	7,460	6,873	7,315
Unattached Individual     -- $25,000
1.	Provincial Income Tax	1,372	1,342	1,850	1,583	1,175	2,358	1,695	1,574	1,601	1,856
2.	Property Tax	--	--	--	--	--	--	--	--	--	--
3.	Retail Sales Tax	386	4	450	480	587	550	649	655	732	641
4.	Fuel Tax	110	90	150	115	147	190	107	135	120	165
5.	Provincial Direct Taxes	1,868	1,436	2,450	2,178	1,909	3,098	2,451	2,364	2,453	2,662
6.	Health Care Premiums/Payroll Tax	432	408	--	563	488	938	--	--	--	375
7.	Total Provincial Tax	2,300	1,844	2,450	2,741	2,397	4,036	2,451	2,364	2,453	3,037
8.	Federal Income Tax	2,771	2,771	2,771	2,771	2,771	2,771	2,771	2,771	2,771	2,771
9.	Net Federal GST	263	304	254	274	285	241	264	270	245	257
10.	Total Tax	5,334	4,919	5,475	5,786	5,453	7,048	5,486	5,405	5,469	6,065
Unattached Individual     -- $80,000
1.	Provincial Income Tax	8,673	7,695	10,767	10,398	8,223	12,946	9,752	9,056	9,211	10,681
2.	Property Tax
	-- Gross	1,550	1,650	1,650	2,600	2,600	2,400	825	1,996	1,500	1,533
	-- Net	1,080	1,650	1,650	2,350	2,600	2,400	825	1,996	1,500	1,533
3.	Retail Sales Tax	858	10	949	1,003	1,280	1,115	1,398	1,430	1,594	1,354
4.	Fuel Tax	165	135	225	173	221	285	161	203	180	248
5.	Provincial Direct Taxes	10,776	9,490	13,591	13,924	12,324	16,746	12,136	12,685	12,485	13,816
6.	Health Care Premiums/Payroll Tax	432	408	--	1,800	1,560	3,000	--	--	--	1,200
7.	Total Provincial Tax	11,208	9,898	13,591	15,724	13,884	19,746	12,136	12,685	12,485	15,016
8.	Federal Income Tax	16,093	16,093	16,093	16,093	16,093	16,093	16,093	16,093	16,093	16,093
9.	Net Federal GST	1,257	1,387	1,173	1,207	1,282	1,102	1,223	1,251	1,193	1,185
10.	Total Tax	28,558	27,378	30,857	33,024	31,259	36,941	29,452	30,029	29,771	32,294
Senior Couple with Equal Pension     Incomes -- $30,000
1.	Provincial Income Tax	704	308	991	143	57	1,029	870	808	822	953
2.	Property Tax
	-- Gross	1,850	1,300	2,400	2,850	2,400	1,900	1,504	2,003	1,500	1,100
	-- Net	1,105	300	2,400	2,600	2,400	1,900	1,504	2,003	1,500	1,100
3.	Retail Sales Tax	679	16	806	763	912	1,033	1,193	1,173	1,073	1,208
4.	Fuel Tax	110	90	150	115	147	190	107	135	120	165
5.	Provincial Direct Taxes	2,598	714	4,347	3,621	3,516	4,152	3,674	4,119	3,515	3,426
6.	Health Care Premiums/Payroll Tax	768	816	--	--	--	--	--	--	--	--
7.	Total Provincial Tax	3,366	1,530	4,347	3,621	3,516	4,152	3,674	4,119	3,515	3,426
8.	Federal Income Tax	1,423	1,423	1,423	1,423	1,423	1,423	1,423	1,423	1,423	1,423
9.	Net Federal GST	852	968	804	846	849	839	852	835	823	865
10.	Total Tax	5,641	3,921	6,574	5,890	5,788	6,414	5,949	6,377	5,761	5,714

Personal Income Tax

• Income tax is based on basic personal credits, applicable provincial credits, and typical major deductions at each income level. Quebec residents pay federal income tax less an abatement of 16.5 per cent of basic federal tax. This abatement has been used to reduce Quebec provincial tax rather than federal tax, for comparative purposes. The two income family of four with $55,000 annual income is assumed to have one spouse earning $35,000 and the other $20,000, the family with $90,000 income is assumed to have one spouse earning $50,000 and the other $40,000, the family with $30,000 is assumed to have each spouse earning $15,000 and each senior is assumed to receive $15,000. All representative families are assumed to have employment income except the senior couple. Contributions to the Quebec Health Services Fund are included in Quebec personal income tax.

Net Child Benefits

• Net child benefits are provincial measures affecting payments to families with children. Provincial child benefits are available in British Columbia, Alberta, Quebec and New Brunswick. In addition, Quebec has a family allowance and the Alberta and Quebec governments have chosen to vary the amount of the basic federal child tax benefit that their residents receive. Quebec has announced changes to provincial child benefits for 1997. These changes have not been incorporated into the above tables because some details have yet to be decided. However, the changes are not likely to change Quebec's rankings in the comparisons.

Property Tax

• Estimates of property taxes are from Royal LePage Winter 1996 Survey of Canadian House Prices. It is assumed that the individual at $25,000 rents accommodation; the family at $30,000 and at $55,000 and the senior couple own bungalows; the family at $90,000 owns a two-storey executive style home; and the single at $80,000 owns a luxury condominium, in a major city for each province. Net property taxes are estimated as taxes owing after credits or grants provided through the property tax system are subtracted.

Sales and Fuel Tax Estimates

• Includes sales tax on meals, liquor and accommodation. Estimates are based on expenditure patterns from the 1992 Survey of Family Expenditures. In estimating individual and family taxable consumption, disposable income is reduced by 20 per cent to reflect housing (mortgage and property taxes or rent) costs. The senior couple is assumed to own their home and have no mortgage costs. For each province, disposable income is further reduced by estimated federal income taxes, estimated provincial income taxes and health care premiums if applicable. In addition, the single individual with $80,000 annual income and the family with $90,000 annual income are assumed to have savings equal to 5 per cent of their disposable income. For each family, disposable income is distributed among expenditures using the consumption pattern of a typical family with the relevant characteristics as estimated by the family expenditure survey. The provincial retail sales tax and the federal goods and services tax (GST) components of these expenditures are then calculated. GST estimates have been reduced by the GST credit, where applicable. New Brunswick, Nova Scotia and Newfoundland sales taxes are calculated using an 8 per cent rate harmonized with the federal GST.

• Fuel tax is based on annual consumption: 1,000 litres of unleaded fuel for the single at $25,000, the family at $30,000 and the senior couple; others are assumed to consume 1,500 litres.

Health Care Premiums/Payroll Tax

• Health care premiums are levied in British Columbia and Alberta only. Approximately 50 per cent of British Columbia premiums are paid by employers on behalf of their employees with the remainder paid by individuals, either by employees or by residents who are not employed. Payroll taxes, in the four provinces that levy them, are paid by the employer. The cost to employers of payroll taxes and health care premiums paid on behalf of employees is generally reflected in reduced wages.

Effective Tax Rates

• British Columbia taxes have been calculated using rates as presented in the 1997 provincial budget. Taxes for other provinces were calculated using rates that were announced prior to March 1, 1997, and come into effect during 1997.

Budget 97 Reports

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BC Budget 97

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BC Ministry of Finance and Corporate Relations

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