2017 Provincial Budget Roundup: Part 1

Since February, the provincial governments across the country have been releasing their 2017 budgets. Most recently in the last week of April, Ontario, Nova Scotia and the Yukon released theirs. Over the next three Knowledge Bureau Reports, we will be presenting a brief summary of each provinces’ tax provisions, starting with the most recent:

YUKON (APRIL 24)

• The small business rate will decrease from 3% to 2% as of July 1, 2017
• The general corporate rate will decrease from 15% to 12% as of July 1, 2017
• Tobacco taxes will increase from 21 cents to 25 cents per cigarette/gram of tobacco effective January 1, 2018, and will subsequently be indexed to the consumer price index
• The Yukon Education and Textbook amounts were eliminated previously

ONTARIO (APRIL 27)

• Fertility expenses will be eligible medical expenses mirroring the federal changes for 2017
• The claims for infirm dependants will be changed to mirror the Canada Caregiver Credit
• Ontario will provide a public transit pass credit for seniors beginning July 1, 2017, when the federal public transit pass is eliminated
• The calculation of Ontario surtaxes payable on taxpayers with business income in multiple jurisdictions will be adjusted so that the surtax applies to the full taxable income before allocating income to Ontario
• Tobacco taxes will increase
• Municipalities will be allowed to levy a hotel (transient accommodation) tax

Note that the Tuition and Education amounts for Ontario were eliminated as of September 5, 2017, in the 2016 Ontario budget. For a more detailed report on the Ontario provincial budget see Knowledge Bureau’s Ontario Provincial Budget 2017. 

NOVA SCOTIA (APRIL 27)

• The Basic Personal, Spousal and Eligible Dependant Amounts will be increased by $3,000 but this increase will be phased out for incomes between $25,000 and $75,000. (6% reduction for each dollar income over $25,000)
• The Age Amount will be increased by $1,475 (from $4,141 to $5,606) but this enhancement will be phased out for incomes between $25,000 and $75,000. (2.95% reduction for net income over $25,000). The basic age amount will still be reduced by 15% of net income over $30,828
• Effective January 1, 2017, the small business threshold was increased from $350.000 to $500,000
• The New Brunswick Education amount was not mentioned in the budget and no legislation has been introduced to eliminate it

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