Tax |
2
British
Columbia |
Alberta |
Saskat-
chewan |
Mani-
toba |
Ontario |
Quebec |
New
Bruns-
wick |
Nova
Scotia |
Prince
Edward
Island |
New-
found-
land |
| Personal income tax |
| Percentage of Basic Federal Tax 3 |
50.5 |
44.0 |
50.0 |
51.0 |
45.0 |
n/a |
61.0 |
57.5 |
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 |
30/26 |
8 |
10/15 |
2 |
20/30 |
n/a |
8 |
10 |
10 |
10 |
Threshold |
$5,300/
$8,660 |
$3,500 |
$1/
$4,000 |
Net
Income
>$30,000 |
$4,270/
$5,635 |
n/a |
$13,500 |
$10,000 |
$5,200 |
$7,900 |
Provincial personal income tax
(per cent of family income) 6 |
5.8 |
5.5 |
7.9 |
7.1 |
5.2 |
8.3 |
7.0 |
6.6 |
6.8 |
7.9 |
Corporation income tax
(per cent of taxable income) 7 |
| General Rate |
16.5 |
15.5 |
17 |
17 |
15.5 |
9.15 |
17 |
16 |
16 |
14 |
| Small Business Rate |
9 |
6 |
8 |
9 |
9.5 |
5.91 |
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 |
0.6/0.99 |
1.32 |
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 |
2-4 |
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 |
13.0 |
16.5 |
| Diesel |
11.5 |
9.0 |
15.0 |
10.9 |
14.3 |
19.6 |
13.7 |
15.4 |
13.5 |
16.5 |
| Sales tax (per cent) |
| General rate |
7 |
Nil |
7 |
7 |
8 |
7.5 |
8 |
8 |
10 |
8 |
| Liquor |
10 |
Nil |
7 |
7 |
12 |
7.5 |
8 |
8 |
37.5 |
8 |
| Meals |
Nil |
Nil |
Nil |
7 |
8 |
7.5 |
8 |
8 |
10 |
8 |
| Accommodation |
8 |
5 |
7 |
7 |
5 |
7.5 |
8 |
8 |
10 |
8 |
Tobacco tax (dollars per carton
of 200 cigarettes) 13 |
22.00 |
14.00 |
20.00 |
19.25 |
6.51 |
7.70 |
10.15 |
10.84 |
12.65 |
25.96 |
| 1 |
Rates shown are those known as of March 15, 1998, and that
are in effect for 1998. |
| 2 |
British Columbia tax rates are shown as announced in the 1998
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, Saskatchewan, Ontario, Prince Edward Island and Newfoundland
have lower rates for manufacturing and processing. Rates include Quebec
surtax of 2.8 per cent, which contributes to the province's Anti-Poverty
Fund. |
| 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 $3 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. New Brunswick has a $5 million deduction
from paid-up capital. Nova Scotia has a $5 million deduction, but only for
firms with under $10 million in paid-up capital. Ontario and Quebec rates
for financial institutions include additional surcharges. A compensation
tax may also apply in Quebec. |
| 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 family. |
| 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 cents per litre dedicated to the BC Transportation
Financing Authority. The rates do not include regional taxes. The Quebec
rate includes estimated sales tax. |
| 13 |
Includes estimated provincial sales tax where applicable. |
