Quote:
Originally Posted by CaptainCrunch
BC has an exemption of 9900, so they're still paying 5% for anything over that.
Ontario is about the same.
Alberta has 0 tax on anything at about 18k or below. With the other provinces if they make 18k or below they're still paying a portion of taxes. That to me is more regressive.
If you want to make changes to the Alberta tax system. You could raise the exemption slightly to something like 24k which is fairly realistic and then bump the flat tax above that by a point or two. That would be a fair tax.
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Let's imagine a low-income Canadian who makes $35k/year. Assuming the tax rates and personal exemption amounts provided by you and Red above are both accurate, that person would pay the following amount of provincial tax in Ontario, BC, and Alberta:
Ontario: $1,267.55 (5.05% of $35k - $9.9k)
Alberta: $1,700.00 (10% of $35k - $18k)
BC: $1,270.06 (5.06% of $35k - $9.9k)
So yes, low income Albertans do indeed pay more provincial income tax than low income Canadians in other provinces with progressive tax rates but lower personal exemption amounts.