Taxes
Did you know? Alberta has the lowest, and most simple, provincial tax rates – for business and individuals – in Canada.
According to the Canadian Federation of Independent Business, Alberta has the most simple tax regime with a single tax rate for all Albertans, corporations and small business; no sales or payroll taxes or capital tax; and minimal taxes on fuel.
In 2011, the City of Lethbridge will collect $120.9 million in taxes from residents and businesses and only 35 per cent will come from industrial and commercial operations. The general tax rate in 2011 for Lethbridge business is 17.352 Mills.
In the County of Lethbridge, the 2011 General Mill rate for machinery and equipment is 8.8884 Mills. The County of Lethbridge generated $27.1 million in revenue during 2010, of which $11.4 million came from taxes. The current assessed value of commercial and industrial sites in the County is in excess of $1.6 Billion.
| Corporate Tax Summary |
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Rates for other provinces known as of January 24, 2012
i Ontario's corporate income tax rate will be reduced from 11.5% to
11.0% on July 1, 2012.
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Alberta Finance, Tax Plan, Chapter: Budget 2012
Canada Revenue Agency. Corporate Tax Rates. 2012
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| Major Provincial Tax Rates |
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| Major Provincial Tax Rates, 2012 |
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AB |
BC |
SK |
MB |
ON |
QC |
NB |
NS |
PE |
NL |
| Statutory Rate Range: |
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| - Lowest Rate (%) |
10.00 |
5.06 |
11.00 |
10.80 |
5.05 |
16.00 a |
9.10 |
8.79 |
9.80 |
7.70 |
| - Highest Rate (%) |
10.00 |
14.70 |
15.00 |
17.40 |
11.16 |
24.00 a |
14.30 |
21.00 |
16.70 |
13.30 |
| Surtax (%) |
- |
- |
- |
- |
20/36 |
- |
- |
- |
10 |
- |
Combined Fed./Prov.
Top Marginal Rate (%) b |
39.00 |
43.70 |
44.00 |
46.40 |
46.41 |
48.22 |
43.30 |
50.00 |
47.37 |
42.30 |
| Personal Amount ($) |
17,282 |
11,354 |
14,942 |
8,634 |
9,405 |
10,925 |
9,203 |
8,481 |
7,708 |
8,237 |
| Spousal Amount ($) |
17,282 |
9,964 |
14,942 |
8,634 |
7,986 |
10,925 |
7,815 |
7,201 |
6,546 |
6,731 |
| General Rate (%) |
10.0 |
10.0 |
12.0 |
12.0 |
11.0 c |
11.9 |
10.0 |
16.0 |
16.0 |
14.0 |
| Mfg & Processing Rate (%) |
10.0 |
10.0 |
10.0 |
12.0 |
10.0 |
11.9 |
10.0 |
16.0 |
16.0 |
5.0 |
| Small Business: |
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| - Rate (%) |
3.0 |
0.0 |
2.0 |
0.0 |
4.5 |
8.0 |
4.5 |
4.0 |
1.0 |
4.0 |
| - Threshold ($000) |
500 |
500 |
500 |
400 |
500 |
500 |
500 |
400 |
500 |
500 |
| General (max.%) |
- |
- |
- |
- |
- |
- |
- |
- d |
- |
- |
| Financial Institutions (max.%) |
- |
- |
3.25 |
3.00 |
- |
0.25 e |
3.00 |
4.00 |
5.00 |
4.00 |
| (%) |
- |
7.0 |
5.0 |
7.0 |
8.0 |
9.5 f |
8.0 |
10.0 |
10.0 f |
8.0 |
| (¢/litre) |
9.0 |
21.2 g,h |
15.0 |
11.5 |
14.7 h |
18.2 g,h |
13.6 h |
15.5 h |
15.8 i |
16.5 h |
| ($/carton) |
40.00 |
37.00 h |
42.00 h |
45.00 |
24.70 h |
21.80 |
34.00 h |
43.04 h |
50.80 |
38.00 h |
| (max.%) |
- |
- |
- |
2.15 |
1.95 |
4.26 j |
- |
- |
- |
2.00 |
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Note: Rates for provinces other than Alberta known as of January 24, 2012
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| a |
Quebec residents receive an abatement of 16.5% of basic federal tax because of the province's decision to opt out of federal cash transfers in support of provincial programs.
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| b |
The top federal personal income tax rate is 29%, except in Quebec where the top federal rate is 24.22% because of the federal abatement.
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| c |
Ontario's corporate income tax rate will be reduced from 11.5% to 11.0% on July 1, 2012.
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| d |
Nova Scotia will reduce its Large Corporations Tax from 0.05% to 0% on July 1, 2012.
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| e |
Quebec levies a 0.25% compensation tax on the paid-up capital of financial institutions.
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| f |
These provinces apply their sales tax on the retail price of the goods and services inclusive of the Goods and Services Tax (GST).
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| g |
An additional 9 ¢/litre is imposed in the greater Vancouver area, 3.5 ¢/litre in Victoria and 3 ¢/litre in Montreal. The British Columbia rate includes the carbon tax on gasoline of 6.67 ¢/litre (carbon tax rate is 5.56 ¢/litre for the first six months of the year). Quebec will increase the fuel tax from 17.2 ¢/litre to 18.2 ¢/litre on April 1, 2012.
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| h |
These provinces apply their retail sales tax or the provincial portion of their harmonized sales tax (HST) on the retail price of the good inclusive of the particular excise tax. In British Columbia, gasoline is subject to the HST, but receives an immediate point-of-sale rebate for the provincial portion of the tax.
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| i |
This rate is based on a 7.1¢/litre base rate and 10.7% of the average wholesale price. The rate is calculated on a monthly basis with the total tax rate is capped at 15.8¢/litre.
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| j |
Quebec also levies a compensation tax of up to 3.9% on salaries and wages paid by financial institutions that is not included in this rate.
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| Alberta Finance, Tax Plan, Chapter: Budget 2012 |
| City of Lethbridge Tax Rate (Mills) |
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The Total Tax Rate (Mills) includes Alberta Learning Tax & Green Acres Foundation Tax.
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City of Lethbridge, Department of Assessment & Taxation.
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| City of Lethbridge Tax Levy |
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City of Lethbridge, Department of Assessment & Taxation.
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| Municipal Revenue Sources County of Lethbridge |
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Taxes includes both net municipal property taxes and revenue derived from penalties and cost of taxes.
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County of Lethbridge, 2011 Annual Report.
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| County of Lethbridge Assessed Value by Category |
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County of Lethbridge, Corporate Services
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| County of Lethbridge Tax Rates (Mills) |
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The Total Tax Rate (Mills) Includes Alberta Learning & Seniors Lodge Requisitions
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County of Lethbridge, Corporate Services
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| International Tax Cost Comparison |
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1. Income Tax is calculated net of generally applicable tax credits, grants and other government incentives.
2. The national results represent the average for the representative cities within each country.
3. For the purpose of apportionment of taxable income in North America, the firm is assumed to be eligible to apportion income among states, but not to maintain a substantial portion of its physical business operations in any location other than the location being examined. The firm is also assumed not to be subject to material level of taxation in any jurisdiction other than its main location.
4. For North American operations, the company does not qualify as an S-Corporation in the US or a Canadian-Controlled Private Corporation in Canada, and does not receive the preferential tax treatment according to those categories of company.
5. Ranking is based on the 10 geographic locations portrayed in the table and does not reflect the ranking within the overall survey results.
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Competitive Alternatives: KPMG's Guide to International Business Location, 2012 Edition.
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| International Cost Comparison |
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1. Total average labour costs include salaries and wages, statutory benefits and other benefits
2. Industrial and office leasing data were collected by Colliers International real estate professional in each local market.
3. Results are the average for the comparable centres selected for the international results. Care should be taken in interpreting the country average due to significant variations in costs.
4. Results are based on Individual job descriptions, typical salary and wage levels have been collected for each position in each centre studied. Statutory and employer-sponsored benefits have been calculated individually according to the average pay for each job. Average for 17 operations included in the overall results.
5. Cost are based on a product distribution pattern for each relevant operation which reflects the characteristics of, and the markets for, the goods produced. Product Distribution has been based on global, continental, national, and regional markets.
6. The model assumes that all freight movements are handled by third-party logistics providers and each firm is able to maximize the efficiency of its distribution patterns, delivering product to its customers in standard shipment sizes.
7. Higher value products with shorter life cycles are assumed to be shipped via air freight.
8. Average for 11 manufacturing operations included in the overall results. Natural gas costs have not been analyzed for non-manufacturing operations. The electricity and natural gas requirements are assumed to be identical for each operation. Annual energy requirements have been developed based on actual firm and industry average data during the process of defining the standard operating parameters for each business operation. Costs were calculated based on published schedule rates of relevant energy suppliers or reported statistical rate data as available in each location.
* Ranking is based solely on the reported results of the locations listed in this comparison. This rank does not reflect the overall ranking of this category based on the competitive study as a whole.
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KPMG. Competitive Alternatives: KPMG's Guide to International Business Location 2010 Edition. 2010
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