British Columbia -- Budget '99
Ministry of Finance and Corporate Relations
Joy K. MacPhail, Minister

 Budget Reports
This electronic version is for informational purposes only.
The printed version remains the official version.

Report H:
SUPPLEMENTARY TABLES — continued

TABLE H2
INTERPROVINCIAL COMPARISONS OF TAX RATES
(Rates known as of March 17, 1999)1
Tax British
Columbia2		 Alberta Saskat-
chewan		 Manitoba Ontario Quebec New
Brunswick		 Nova
Scotia		 Prince
Edward
Island		 New-
foundland
Personal income tax
Percentage of Basic
Federal Tax3		 49.5 44.0 48.0 50.0 40.5 n/a 60.0 57.5 59.5 69.0
Flat Rate4 n/a 0.5 2.0 2.0 n/a n/a n/a n/a n/a n/a
Surtax5 Rate 30/19 8 10/15 2 20/36 n/a 8 10 10 10
Threshold $5,300/
$8,660		 $3,500 $1/
$4,000		 Net
Income
>$30,000		 $3,845/
$4,800		 n/a $13,500 $10,000 $5,200 $7,900
Provincial personal income
tax (per cent of family
income)6		 5.6 5.4 7.5 6.9 4.6 8.4 6.8 6.5 6.7 7.8
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 5.5 6 8 9 8.5 9.15 6 5 7.5 5
Corporation capital tax8
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 premiums9
Individual/family 36/72 34/68 Nil Nil Nil Nil Nil Nil Nil Nil
Payroll tax10 (per cent) Nil Nil Nil 2.15 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 3.5 4
Fuel tax (cents per litre)
Gasoline12 11.0 9.0 15.0 11.5 14.7 19.2 10.7 13.5 13.0 16.5
Diesel 11.5 9.0 15.0 10.9 14.3 20.2 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 6.70 8.00 10.15 10.84 12.65 25.96
 
1 Rates shown are those known as of March 17, 1999, and that are in effect for 1999. Quebec surtaxes, which contribute to the Province's Anti-Poverty Fund in
1999, are included. These surtaxes are applicable to provincial personal income tax (0.3 per cent), corporation income tax (2.8 per cent) and corporation
capital tax for financial institutions (3 per cent) and will expire in November 1999.
2 British Columbia tax rates are shown as announced in the 1999 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. Effective July 1, 1999,
Quebec's general corporate income tax rate applies to all business income; prior to July 1, 1999 Quebec's small business corporate income tax is 5.91 per
cent. 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 $2.5 million; Ontario has lower rates for corporations with less
than $2.3 million in taxable capital; Manitoba has a $5 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 rates for financial institutions include additional surcharges. A compensation tax may also apply in Quebec. Effective for tax years
beginning after October 31, 1999, Alberta's capital tax base will be harmonized with the federal large corporations tax base and apply a 0.7 per cent rate on
the first $400 million of capital and a 1 per cent rate on the remaining capital and eliminate Alberta's special head office relief for small Alberta-based 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 Provinces with payroll taxes 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 rate for British Columbia is the basic rate paid by consumers throughout the province and includes amounts
dedicated to BC Transportation Financing Authority, British Columbia Ferry Corporation and the Greater Vancouver Transportation Authority. The rates do not
include regional taxes. The Quebec rate includes estimated sales tax.
13 Includes estimated provincial sales tax where applicable.

 

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