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 H3
COMPARISON OF PROVINCIAL AND FEDERAL TAXES BY PROVINCE — 1999


Tax British
Columbia
Alberta Saskat-
chewan
Manitoba Ontario Quebec New
Brunswick
Nova
Scotia
Prince
Edward
Island
New-
foundland

($)
Two Income Family of Four — $90,000
1. Provincial Income Tax 6,522 6,212 8,583 8,648 5,336 10,804 7,906 7,576 7,840 9,092
Net Child Benefits 0 0 0 0 0 0
2. Property Tax
— Gross
1,638 1,352 2,347 2,581 2,801 2,078 1,205 1,564 1,486 1,110
— Net 1,168 1,352 2,347 2,331 2,801 2,078 1,205 1,564 1,486 1,110
3. Sales Tax 969 6 941 1,109 1,435 1,543 1,627 1,641 1,513 1,578
4. Fuel Tax 165 135 225 173 221 288 161 203 195 248
5. Provincial Direct Taxes 8,824 7,705 12,096 12,261 9,793 14,713 10,899 10,984 11,034 12,028
6. Health Care Premiums/
Payroll Tax
864 816 1,935 1,755 3,375 1,350
7. Total Provincial Tax 9,688 8,521 12,096 14,196 11,548 18,088 10,899 10,984 11,034 13,378
8. Federal Income Tax 13,176 13,176 13,176 13,176 13,176 13,176 13,176 13,176 13,176 13,176
9. Net Federal GST 1,454 1,564 1,412 1,409 1,516 1,319 1,424 1,436 1,385 1,381
10. Total Tax 24,318 23,261 26,684 28,781 26,240 32,583 25,499 25,596 25,595 27,935


Two Income Family of Four — $55,000

1. Provincial Income Tax 3,065 2,982 4,123 3,800 2,507 4,598 3,715 3,560 3,684 4,272
Net Child Benefits 0 101 0 (157) 0 0
2. Property Tax
— Gross
1,638 1,352 2,347 2,581 2,801 2,078 1,205 1,564 1,486 1,110
— Net 1,168 1,352 2,347 2,331 2,801 2,078 1,205 1,564 1,486 1,110
3. Sales Tax 724 5 719 859 1,071 1,231 1,241 1,248 1,153 1,217
4. Fuel Tax 165 135 225 173 221 288 161 203 195 248
5. Provincial Direct Taxes 5,122 4,575 7,414 7,163 6,600 8,038 6,322 6,575 6,518 6,847
6. Health Care Premiums/Payroll Tax 864 816 1,183 1,073 2,063 825
7. Total Provincial Tax 5,986 5,391 7,414 8,346 7,673 10,101 6,322 6,575 6,518 7,672
8. Federal Income Tax 6,191 6,191 6,191 6,191 6,191 6,191 6,191 6,191 6,191 6,191
9. Net Federal GST 1,086 1,163 1,080 1,092 1,131 1,052 1,086 1,092 1,055 1,065
10. Total Tax 13,263 12,745 14,685 15,629 14,995 17,344 13,599 13,858 13,764 14,928


Two Income Family of Four — $30,000

1. Provincial Income Tax 1,162 906 1,230 831 144 (753) 1,408 1,349 1,396 1,619
Net Child Benefits (766) (741) 0 (237) (52) 0
2. Property Tax
— Gross
1,638 1,352 2,347 2,581 2,801 2,078 1,205 1,564 1,486 1,110
— Net 1,168 1,352 2,347 2,331 2,801 2,078 1,205 1,564 1,486 1,110
3. Sales Tax 480 3 520 607 750 933 874 879 814 980
4. Fuel Tax 165 135 225 173 221 288 161 203 195 248
5. Provincial Direct Taxes 2,209 1,655 4,322 3,942 3,916 2,309 3,648 3,995 3,891 3,957
6. Health Care Premiums/
Payroll Tax
691 816 645 585 1,125 450
7. Total Provincial Tax 2,900 2,471 4,322 4,587 4,501 3,434 3,648 3,995 3,891 4,407
8. Federal Income Tax 2,347 2,347 2,347 2,347 2,347 2,347 2,347 2,347 2,347 2,347
9. Net Federal GST 266 421 420 409 433 439 403 407 381 377
10. Total Tax 5,513 5,239 7,089 7,343 7,281 6,220 6,398 6,749 6,619 7,131


Unattached Individual — $25,000

1. Provincial Income Tax 1,302 1,275 1,759 1,499 922 2,182 1,578 1,512 1,564 1,814
2. Property Tax
3. Sales Tax 387 3 386 490 601 652 670 673 689 658
4. Fuel Tax 110 90 150 115 147 192 107 135 130 165
5. Provincial Direct Taxes 1,799 1,368 2,295 2,104 1,670 3,026 2,355 2,320 2,383 2,637
6. Health Care Premiums/Payroll Tax 432 408 538 488 938 375
7. Total Provincial Tax 2,231 1,776 2,295 2,642 2,158 3,964 2,355 2,320 2,383 3,012
8. Federal Income Tax 2,629 2,629 2,629 2,629 2,629 2,629 2,629 2,629 2,629 2,629
9. Net Federal GST 281 322 280 292 311 257 283 286 264 273
10. Total Tax 5,141 4,727 5,204 5,563 5,098 6,850 5,267 5,235 5,276 5,914


Unattached Individual — $80,000

1. Provincial Income Tax 8,326 7,411 10,338 10,052 7,238 12,886 9,245 8,860 9,565 10,905
2. Property Tax
— Gross
1,638 1,352 2,347 2,581 2,801 2,078 1,205 1,564 1,486 1,110
— Net 1,168 1,352 2,347 2,331 2,801 2,078 1,205 1,564 1,486 1,110
3. Sales Tax 864 7 818 1,028 1,324 1,303 1,453 1,471 1,477 1,374
4. Fuel Tax 165 135 225 173 221 288 161 203 195 248
5. Provincial Direct Taxes 10,523 8,905 13,728 13,584 11,584 16,555 12,064 12,098 12,723 13,637
6. Health Care Premiums/
Payroll Tax
432 408 1,720 1,560 3,000 1,200
7. Total Provincial Tax 10,955 9,313 13,728 15,304 13,144 19,555 12,064 12,098 12,723 14,837
8. Federal Income Tax 15,785 15,785 15,785 15,785 15,785 15,785 15,785 15,785 15,785 15,785
9. Net Federal GST 1,301 1,430 1,237 1,249 1,352 1,119 1,271 1,287 1,215 1,202
10. Total Tax 28,041 26,528 30,750 32,338 30,281 36,459 29,120 29,170 29,723 31,824


Senior Couple with Equal Pension Incomes — $30,000

1. Provincial Income Tax 627 201 908 58 (249) 527 760 728 753 874
2. Property Tax
— Gross
1,638 1,352 2,347 2,581 2,801 2,078 1,205 1,564 1,486 1,110
— Net 893 1,352 2,347 2,331 2,801 2,078 1,205 1,564 1,486 1,110
3. Sales Tax 601 7 579 710 854 1,119 1,130 1,116 994 1,129
4. Fuel Tax 110 90 150 115 147 192 107 135 130 165
5. Provincial Direct Taxes 2,231 1,650 3,984 3,214 3,553 3,916 3,202 3,543 3,363 3,278
6. Health Care Premiums/
Payroll Tax
768 816
7. Total Provincial Tax 2,999 2,466 3,984 3,214 3,553 3,916 3,202 3,543 3,363 3,278
8. Federal Income Tax 1,266 1,266 1,266 1,266 1,266 1,266 1,266 1,266 1,266 1,266
9. Net Federal GST 792 854 757 789 774 773 796 784 757 796
10. Total Tax 5,057 4,586 6,007 5,269 5,593 5,955 5,264 5,593 5,386 5,340
 

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 benefit measures are available in British Columbia (BC Family Bonus), Alberta (Family Employment Credit), Saskatchewan (Child Benefit), Quebec (Integrated Child Allowance), New Brunswick (Child Tax Benefit) and Nova Scotia (Child Benefit). In addition, the Alberta government has chosen to vary the amount of the basic federal child tax benefit that its residents receive (shown as a net amount).

Property Tax

  • The method used to determine property tax estimates in the tables has changed from prior year's estimates. In the past, property tax estimates were taken directly from the Royal LePage Survey of Canadian House Prices — a publication produced four times per year. However, in preparing the above tables for 1999, the Royal LePage estimates were examined closely because of an unexpected increase in the estimate of property taxes in Surrey. This analysis revealed that the methodology used by Royal LePage can vary significantly from year to year and from location to location.
    As a result, this year's comparison uses a set of property tax estimates produced by the Canadian Mortgage and Housing Corporation (CMHC). CMHC publishes property tax and other housing cost estimates annually for a "starter home" in major Canadian cities. These estimates are based on a comprehensive review of property taxes that prospective buyers are likely to pay in major cities in each province. Using the CMHC estimates in previous years would have changed the estimates of total tax paid but not British Columbia's ranking relative to other provinces except in one instance for the senior couple, where British Columbia's estimate of total tax would be third lowest in 1998 — slightly above the estimate for Newfoundland.
    In the tables, each family is assumed to own a dwelling with property taxes assessed at the amount provided by CMHC (except the single individual with $25,000 annual income who is assumed to rent accommodation). Net property taxes are estimated as taxes owing after credits 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 1996 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 percent 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 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.
  • Fuel tax is based on annual consumption: 1,000 litres of unleaded fuel for the single individual 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 in effect for 1999. Taxes for other provinces were calculated using rates that were announced prior to March 17, 1999, and come into effect during 1999.

 

previous CONTENTS FOR REPORTS next
BUDGET ’99 HOME PAGE

Link to the Home Page for:
British Columbia Signature
If you have questions or comments about content please contact:

Copyright 1999: Queen’s Printer, Victoria, British Columbia, Canada