Tax Advantages by Province

In a previous edition of Breaking Tax and Investment News, we wrote about the tax advantages offered by the various provincial governments and how they rank, per the Alberta budget papers.

Depending on your province of residence at December 31, 2009 and your income level, you could be paying a difference of anywhere from $4,400 to $9,800 in provincial taxes based on where you live.

Here is a review of taxes you would be paying in the various provinces at income levels of $30,000, $75,000 and $125,000 with two children:

• A lower income taxpayer living in Quebec would pay just over $5,000 less in provincial tax than if they lived in Newfoundland.

• A middle income family living in Alberta would pay approximately $4,400 less in provincial tax than if they lived in Prince Edward Island.

• A higher income family living in Alberta would pay $9,800 less in provincial tax than if they lived in Quebec.

Therefore, depending on your family profile and income level, a careful review if you are contemplating a move in 2009 could make it very worthwhile from a tax standpoint.