Wednesday, April 30, 2014


A short post based on a discussion on Twitter; which province(s) have the highest income taxes.

First; you really need to add the Federal rates. Federal income taxes are a huge portion of income taxes. The overwhelming majority of income taxes you pay are to the Federal government.

Second, income taxes are hard to compare. Unless you use the full dataset you are missing some vital information. 

In this data I've included anything that is based on share of income in taxes. That means, for example, here in Ontario, this includes Federal income taxes, Provincial income taxes, the Provincial income tax surtax, but not the provincial Health tax. Why? The health tax is a set tax. If you make $20,000, you pay $0. If you make $25,000 you pay $300. If you make $36,000 you pay $300. If you make $38,500 you pay $450. This can not be expressed simply as a percentage share. 

Since the debate that sparked this was about the highest bracket, that is what I will show. Note that you can find all the full numbers in the links provided.

$150,000 (and over)














Some questions and answers.
Q: Why do so many provinces set their highest bracket at the same rate?
A: They don't, that's the highest federal bracket. Remember these are combined rates.

Q: Will you do more posts like this, ones that have US States for comparison, and include other taxes?
A: If the post is popular, vets views, and comments; yes. If it's unpopular, gets few views, and no comments, then no.

Q: What's the * for?
A: At $136,270, Ontario's rate is 46.41%. This is a marker to note that. Nova Scotia's rate here is 46.50%. BC's rate at this level is 43.70%, but would not move it's position within the chart much.


  1. Fun fact: the bottom 7 provinces/territories with the 7 lowest rates are also the 7 provinces/territories that receive at least 5% of their provincial budget either from gas/oil royalties, or form the Canada Territorial Fund.

  2. Because of exemptions, tax expenditures, and many other things, under %30 is more probable.
    See a StatCan PDF called Slicing the Pie.

  3. Note; Ontario's budget would propose adding a new tax bracket, 48.53% total, between the 47.53% and 49.53% brackets. This would apply on incomes between $150,000 and $220,000