British Columbians will be paying among the lowest amounts of personal income tax this year, according to a PricewaterhouseCoopers’ annual tax report released Thursday morning.
B.C. residents earning less than $70,000 this year will pay less than $14,900 in federal and provincial income tax, the lowest in Canada. Ontario residents will pay the second-least amount, just under $15,500, followed by Albertans, who will pay just under $16,300.
For those earning more than $150,000, B.C residents will pay the second lowest amount of personal income tax, just under $46,700, ranking it after Alberta, where residents will pay just over $45,300.
The report noted the increase in take-home pay was due to a 17% increase in the basic personal income tax exemption to $11,000 from $9,373 and a 20% increase in the spousal amount to $9,653 from $8,026.
While B.C. has the lowest income taxes, the province ranks low in other areas. The HST, which came into effect July 1, will increase costs for a host of services and entertainment that were previously PST-exempt.
The report noted that B.C. has one of the highest land transfer taxes in Canada. For a $400,000 property, B.C. residents will pay $6,000 in land transfer tax (LTT), compared with $115 in Alberta or $1,065 in New Brunswick, the two provinces with the lowest LTT’s.
B.C. also has some of the highest probate fees in the country. For estates worth $500,000, B.C. estates will pay $6,658 in probate fees compared with $400 in Alberta or a nominal fee in Quebec.