Atlantic Canadians pay higher personal income tax rates: Fraser Institute
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According to a new study by the Fraser Institute, a right-leaning think tank, across all income levels, workers in Atlantic Canada pay higher personal income tax rates.
Atlantic Canadians are taking home less money on average than their fellow Canadians and Americans.
According to a new study by the Fraser Institute, a right-leaning think tank, across all income levels, workers in Atlantic Canada pay higher personal income tax rates.
"This is really persistent problem for Canada," said Jake Fuss with Fraser Institute. "It ultimately means that it's harder for us to attract professionals, business owners, entrepreneurs to work and invest in Canada."
When looking at income of $75,000, Prince Edward Island has the highest tax rate at 37.20 per cent, which is slightly higher than its neighbours.
"This result is mainly due to P.E.I.'s relatively lower income tax threshold for a rate that generally applies at higher incomes in other provinces," said a spokesperson with P.E.I.'s Finance Department.
The spokesperson noted P.E.I. is in the middle of the pack among provinces for most metrics during the period studied.
In Nova Scotia, the government recently announced as of Jan. 1, 2025, it will index personal income tax brackets, the basic personal amount, and certain non-refundable tax credits. It claimed it would be the largest tax break in the province's history.
