spitfire
23-04-2009, 04:09 AM
Although all of us send the same tax levy to the Feds in Ottawa regardless of where we live, when it comes to gasoline, tobacco, and provincial sales taxes, there are some pretty sharp differences across the country.
The overall tax burden on individual Albertans is by far the lowest of any province in Canada. That's because Alberta is the only province without a provincial sales tax (the Yukon, North West Territories, and Nunavut don't levy a sales tax either), and also has one of the lowest gasoline taxes in the country.
Overall, Ontario and Quebec have the least tax-friendly systems in the country, according to a new report from the Canadian Federation of Independent Business. The CFIB's Small Business Provincial Tax Index rates the provinces based on 65 indicators in five key areas of tax policy, including premiums and payroll taxes, corporate income taxes, property and capital taxes, personal income taxes and sales and excise taxes.
Ontario performed worst when it comes to corporate income taxes, as well as property and capital taxes, while Quebec received poor marks for its premiums and payroll taxes, as well as personal income taxes. On a scale of 0 to 10, with 0 being the worst and 10 the best, Quebec ranked in last place at 4.02, followed by Ontario at 4.10.
At the other high end of the scale was Alberta, which ranked first with a rating of 7.98, followed by New Brunswick at 6.32 and Saskatchewan at 6.30.
New Brunswick scores second overall, but it does not finish first in any one category. It scores second on sales and excise taxes, and third on both premiums and payroll taxes, and property and capital taxes. The province has more work to do to improve its score on corporate and personal income taxes, where it rates sixth and fifth respectively, the study suggests.
Of course, everybody gets tagged with the GST, although Nova Scotia, New Brunswick and Newfoundland and Labrador have "harmonized" the federal and provincial sales tax, creating the HST. Ontario is scheduled to join their ranks next year.
To make matters more complicated, some jurisdictions apply these taxes differently. In most provinces, sales tax is charged on the selling price of the item before the GST is applied, thus avoiding GST being charged on PST. In Quebec and Prince Edward Island, however, the provincial sales tax is charged based on the total of the selling price plus GST - compounding your cost.
Where's the biggest sales tax hit? PEI tops the list at an effective rate of 15.5 per cent, with Ontario running a close second at 13 per cent.
If you leave aside consumption taxes and focus simply on the federal and provincial tax, the picture changes slightly. The province in which someone making $50,000 pays the most in combined provincial and federal taxes is Quebec, followed by closely Manitoba and New Brunswick. British Columbia residents pay the least, followed closely by those in Alberta and Ontario.
The truth is though, even two people making the same salary and living in similar neighbourhoods can pay sharply different amounts in taxes. For example, if your house is worth more, you pay higher property taxes; but your neighbour may buy fewer goods and services, thus saving on sales taxes. If you drive a truck and commute farther to work, you're going to get hit with more in gas taxes than someone with a home office. But, if you don't drink or smoke, you're likely to save more on the sin taxes.
Have you got a couple of vehicles on the road? Besides the straight excise tax of 10 per cent on gas and 4 per cent on diesel, most provinces add other gas taxes that increase the toll. Last year, for instance, B.C added a carbon tax to most fuels sold in the province. For gasoline, this works out to about 2.4 cents per litre, rising to 7.2 cents by 2012.
The province with the greatest tax on gasoline is Newfoundland; the lowest province is Alberta, with the Yukon coming in as the lowest territory.
On average, the combined provincial and federal gasoline tax is 33 cents across the country, still making Canada one of the least expensive places in the Western world to buy gas. In Europe, government taxes make up, on average, closer to twice that amount.
Increasing taxes on cigarettes has always been a popular way to combine smoking cessation with raising revenue. Across the country, roughly three quarters of the price of a package of cigarettes is tax. The North West Territories leads the way here, whereas Quebec remains the cheapest place to pick up a pack of smokes.
The overall tax burden on individual Albertans is by far the lowest of any province in Canada. That's because Alberta is the only province without a provincial sales tax (the Yukon, North West Territories, and Nunavut don't levy a sales tax either), and also has one of the lowest gasoline taxes in the country.
Overall, Ontario and Quebec have the least tax-friendly systems in the country, according to a new report from the Canadian Federation of Independent Business. The CFIB's Small Business Provincial Tax Index rates the provinces based on 65 indicators in five key areas of tax policy, including premiums and payroll taxes, corporate income taxes, property and capital taxes, personal income taxes and sales and excise taxes.
Ontario performed worst when it comes to corporate income taxes, as well as property and capital taxes, while Quebec received poor marks for its premiums and payroll taxes, as well as personal income taxes. On a scale of 0 to 10, with 0 being the worst and 10 the best, Quebec ranked in last place at 4.02, followed by Ontario at 4.10.
At the other high end of the scale was Alberta, which ranked first with a rating of 7.98, followed by New Brunswick at 6.32 and Saskatchewan at 6.30.
New Brunswick scores second overall, but it does not finish first in any one category. It scores second on sales and excise taxes, and third on both premiums and payroll taxes, and property and capital taxes. The province has more work to do to improve its score on corporate and personal income taxes, where it rates sixth and fifth respectively, the study suggests.
Of course, everybody gets tagged with the GST, although Nova Scotia, New Brunswick and Newfoundland and Labrador have "harmonized" the federal and provincial sales tax, creating the HST. Ontario is scheduled to join their ranks next year.
To make matters more complicated, some jurisdictions apply these taxes differently. In most provinces, sales tax is charged on the selling price of the item before the GST is applied, thus avoiding GST being charged on PST. In Quebec and Prince Edward Island, however, the provincial sales tax is charged based on the total of the selling price plus GST - compounding your cost.
Where's the biggest sales tax hit? PEI tops the list at an effective rate of 15.5 per cent, with Ontario running a close second at 13 per cent.
If you leave aside consumption taxes and focus simply on the federal and provincial tax, the picture changes slightly. The province in which someone making $50,000 pays the most in combined provincial and federal taxes is Quebec, followed by closely Manitoba and New Brunswick. British Columbia residents pay the least, followed closely by those in Alberta and Ontario.
The truth is though, even two people making the same salary and living in similar neighbourhoods can pay sharply different amounts in taxes. For example, if your house is worth more, you pay higher property taxes; but your neighbour may buy fewer goods and services, thus saving on sales taxes. If you drive a truck and commute farther to work, you're going to get hit with more in gas taxes than someone with a home office. But, if you don't drink or smoke, you're likely to save more on the sin taxes.
Have you got a couple of vehicles on the road? Besides the straight excise tax of 10 per cent on gas and 4 per cent on diesel, most provinces add other gas taxes that increase the toll. Last year, for instance, B.C added a carbon tax to most fuels sold in the province. For gasoline, this works out to about 2.4 cents per litre, rising to 7.2 cents by 2012.
The province with the greatest tax on gasoline is Newfoundland; the lowest province is Alberta, with the Yukon coming in as the lowest territory.
On average, the combined provincial and federal gasoline tax is 33 cents across the country, still making Canada one of the least expensive places in the Western world to buy gas. In Europe, government taxes make up, on average, closer to twice that amount.
Increasing taxes on cigarettes has always been a popular way to combine smoking cessation with raising revenue. Across the country, roughly three quarters of the price of a package of cigarettes is tax. The North West Territories leads the way here, whereas Quebec remains the cheapest place to pick up a pack of smokes.