Money a subsidiary of Quebecor Media illustrated on Canoe.ca how Taxes can mean the difference when it comes to finding the cheapest places to live and do business in Canada.
Living in B.C.
If you bring in $70,000 in regular income, i.e. wages or interest income, than British Columbia is the best place to live. There you'll pay less than $15,000 on your earnings vs the next lowest taxes you'll find in Ontario at $15,492.
Alberta is Best for High Earners
Now if you're one of those elite Canadians whose earnings top $150,000 than the province of Alberta is your place to be. there you will pay $45,304 in taxes. Plus Alberta is a great place to die - not really I don't think any place is the best place to die! But if you're planning on leaving something behind your heirs will be happy as they stand the most to gain. In Alberta the probate fees are just $400 - the lowest in the country and far , far below the national average of more then $3,500.
Cheapest Places to Do Business in Canada
Alberta again gets top grade with the lowest corporate tax rate in the country at just 28%. But Ontario digs deep to entice R&D investors and also movie makers with big tax breaks. Plus Ontario continues to drop it's corporate tax rate which is supposed to be down to just 25% by 2013. That's a comfortable margin below the national average of over 30%. Ontario provides a 25% tax credit for production costs related to making a movie and a whopping 40% tax credit for those involved in digital media. British Columbia offers similar credits to entertainment businesses while Quebec also jumps on the movie making business with a 35% tax credit and complete tax holidays for those willing to invest in manufacturing business in remote regions of the province.
If you're looking for to make a move but the average $3,500 land transfer tax has you turned off take a trip to New Brunswick where you'kl find the lowest Land transfer taxes in all the land. There you'll pay just over $1000 on a $400,000 home. New Brunswick is easy on the individual too with a falling income tax rate expected to be down to 23% by 2013.
Tax Rates lower than virtually any place in the U.S.
Can you believe that? While Canadians bemoan their tax burden and our American cousins south of the border look on with skeptical eyes to their 'socialist' partner to the north, this is the reality. Corporate Taxes in Canada range from 28 to 30% while it's not uncommon to see 45% in the U.S. For individual income taxes the spread is quite similar.
Now it's true that we don't exactly have apples to apples for comparison. In the U.S for example most homeowners can deduct mortgage interest from their income which can really add up. But Americans also have to pay a big chunk of their income for health insurance either in the form of deductibles whenever they visit the doctor or hospital or in the form of a co-share of premiums with their employer. In Canada healthcare is a social right whereby every Canadian is entitled.
Source: Canoe.ca | Money - Beat the taxman