Tax
“A charge levied by the government on the people in order to raise public funds.”
“Alberta has the lowest taxes in Canada, and we're going to keep it that way.”
Pat Nelson,
Alberta Minister of Finance
March 19, 2003
Alberta has no general sales or payroll taxes, the lowest fuel tax in Canada, and among the lowest school property taxes, personal income taxes, and corporate taxes in Canada.
Albertans can proudly claim the lowest overall tax burden in the country …when you move to Banff you will find that we have no provincial sales tax, so you pay only the 7% GST (which is charged in all provinces – you can’t escape it!) on goods and services. So by moving to Alberta you save on every purchase you make – except if you come from Northwest Territories, Nunavut, or the Yukon where there is no Provincial sales tax either!
Nova Scotia, New Brunswick, and Newfoundland and Labrador operate under a "harmonized" tax system, when making most purchases in these provinces you will be paying the HST (Harmonized Sales Tax – a combined Goods and Services Tax (7% nationally) & PST (Provincial Sales Tax)) of 15%!
All the other provinces treat the provincial sales tax as separate from the GST (which is a 7% federal tax). To make matters even more confusing, some provinces refer to their provincial sales tax systems as Retail Sales Taxes (Ontario 8%) or Social Services Taxes (BC 7%) instead of as PST - and then there's Quebec, which has its own tax entirely (the QST).
If you are a student you can ask your employer to withhold the tax contribution that normally comes off your paycheque automatically and is submitted to the CRA (Canada Revenue Agency). That way you will have more $$$ for school upfront and will not have tax deducted that you will most likely get back later anyway!
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B.C. |
Alberta |
Ontario |
Quebec |
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Personal Income Tax
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Basic Rate |
8.4% Low Income 12.20% Median Income 19.70 % High Income |
20,000
|
6.37% Low Income 9.62% Median Income 11.16% High Income |
17% Low Income 22.5% Median 24% High |
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Income Surtax |
30% surtax is applied on tax to be paid in excess of $5,300
15% surtax is applied on tax to be paid in excess of $8,600
|
0% |
20% surtax is applied on tax to be paid in excess of $3,561
36% tax is applied on tax to be paid in excess of $4,468 |
0% |
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Flat Tax |
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Flat Tax 10% based on a percentage of income |
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Consumption Taxes |
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Retail Sales Tax |
7% |
0% |
8% |
7.5% |
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Gasoline Tax (per liter) |
11% |
9% |
14.7% |
19.2% |
“...The
most competitive tax system was found in Alberta, thanks in part to a 10%
single-rate personal income tax, the lowest fuel taxes, no sales tax, and
some of the lowest corporate tax rates”
Dominion Bond Rating Service Limited
“The Canadian Federal and Provincial Governments - 2002 Overview”
January 2003
More Questions?
The Canada Revenue Agency has a very helpful website that can answer many questions and help you get a tax return package and file your return online…. the site also lets you know when you can expect your refund! Anyway for further information, click on the links below!
How to get a tax return package
What to report as income
What to claim on your tax return
How to send us your tax return
due date for sending us your tax return, and different balance owing due dates
When to expect your refund
How to change your address
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