Taxes across the country are going up and the biggest hikes are taking place in Ontario and British Columbia, according to a new report from a tax watchdog agency.
The Canadian Taxpayers Federation (CTF) released its annual New Year tax calculations, providing a glimpse of the year to come.
In years past, the CTF has been able to point out winning and losing provinces and/or income brackets, but this year, the picture is bleak across the board.
“Nearly every working Canadian will be paying more in income and payroll taxes in 2011,” said Derek Fildebrandt, CTF national research director. “In every province, family and income scenario, our research finds that the governments take from inflation-adjusted incomes will increase, in some case substantially.”
That being said, some provinces are being hit harder than others.
Ontario taxpayers are going to feel it the most, followed by British Columbians and Nova Scotians.
“Without a doubt, Ontarians are the biggest losers when it comes to tax changes on Jan. 1 with an average 4.3 per cent increase in the scenarios we examined.”
After adjusting for inflation, a single-earner Ontario family with an income of only $45,000 in 2010 will see a hike of a 5.1 per cent, costing that family an additional $389. A dual-income family making $80,000 will pay an extra $590 (3.5 per cent) and a single-income family making $100,000 will pay $1,035 (3.6 per cent) more.
British Columbians aren't much better off, facing a 2.9 per cent increase.
In B.C., a single-earner family with an income of $35,000 will face a hike of 8.1 per cent, costing them an additional $384 next year. A dual-income family making $80,000 in 2010 will see a hike of 1.8 per cent, meaning they will be hit with an additional bill of $312.
“British Columbians were expecting a 15 per cent cut in the provincial share of their income taxes on Jan. 1, but thanks to the cabinet flip-flop, they now face the second largest hike in the country after Ontario,” said Fildebrandt.
For the full report, visit http://tinyurl.com/2ceer64