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320
The number of days of sunshine Lethbridge has each year.

University of Lethbridge research was key to the community-rebuilding process in Slave Lake, Alberta by developing programs to help the community with some of the social and personal challenges faced by residents.

 Home Business Cost of Doing Business Taxes
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Taxes

Did you know that Alberta has the lowest combined average federal/state corporate income tax rate in the country?  Additionally, there is no payroll tax, sales tax, provincial capital tax or tax on financial institutions in the province.  Businesses in Lethbridge benefit further from the lack of Machinery and Equipment Tax.  Canada, also has the added advantage of a publicly- funded healthcare system with no additional health care premiums charged in Alberta.  

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.  Businesses operating in Canada also have access to Scientific Research and Educational Development (SR&ED) tax credits.  The Federal government offers SR&ED credits worth up to 20% of a company’s eligible expenditures while Alberta offers an additional 10% up to $4 million.

All of these components make the tax environment very competitive.

Corporate Tax Summary
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Figure A.21.a
Corporate Tax Summary
Province General Manufacturing
& Processing
Small
Business
Alberta 10.0% 10.0% 3.0%
British Columbia 11.0% 10.0% 2.5%
Saskatchewan 12.0% 10.0% 2.0%
Manitoba 12.0% 12.0% -
Ontarioi 11.5% 10.0% 4.5%
Quebec 11.9% 11.9% 8.0%
New Brunswick 10.0% 10.0% 4.5%
Nova Scotia 16.0% 16.0% 3.5%
Prince Edward Island 16.0% 16.0% 1.0%
Newfoundland 14.0% 5.0% 4.0%
Federal 15.0% 15.0% 11.0%

Notes

Rates reflect the present conditions in all provinces as of year end 2013 and are based on the rates as published in the spring of 2013.  These include a variety of incremental rate changes scheduled throughout the year, which were announced at that time.

Sources

Alberta Finance, Tax Plan, Chapter: Budget 2013
Canada Revenue Agency. Corporate Tax Rates. 2013
KPMG: Income Tax for General Corporations 2013-2014

Major Provincial Tax Rates
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Figure A.28
Major Provincial Tax Rates, 2013
  AB BC SK MB ON QC NB NS PE NL
Personal Income Tax
Statutory Rate Range:                    
- 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 13.16 25.75 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 49.53 49.97 43.30 50.00 47.37 42.30
Personal Amount ($) 17,593 10,276 15,241 8,884 9,574 11,195 9,388 8,481 7,708 8,451
Spousal Amount ($) 17,593 8,860 15,241 8,884 8,129 11,195 7,971 8,481 6,546 6,906
Corporate Income Tax
General Rate (%) 10.0 11.0 12.0 12.0 11.5 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:                    
- Rate (%) 3.0 2.5 2.0 0.0 4.5 8.0 4.5 3.5 1.0 4.0
- Threshold ($000) 500 500 500 400 500 500 500 400 500 500
Capital Tax
General (max.%) - - - - - - - - -
Financial Institutions (max.%) - - 3.25 4.00 - - 4.00 4.00 5.00 4.00
Sales Tax
         (%) - 7.000 5.000 7.000 8.000 9.975  8.000 10.000 9.0 00 8.000
Gasoline Tax
         (¢/litre) 9.0 21.2 c 15.0 14.0 14.7 d 18.2 c,d 13.6 d 15.5 d 15.8  16.5 d
Tobacco Tax
         ($/carton) 40.00 44.60  42.00 d 50.00d 24.70 d 25.80 34.00 43.04d 50.80 38.00d
Payroll Tax
         (max.%) - - - 2.15 1.95 4.26 e - - - 2.00

Notes

  Note: Rates for provinces other than Alberta known as of February 22, 2013
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.
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.
c An additional 11 ¢/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, which is 6.67 ¢/litre.
d These provinces apply their PST or the provincial portion of their HST on the retail price of the good inclusive of excise taxes.
e Quebec levies an additional tax of up to 1.9% on salaries and wages paid by financial institutions that is not included in this rate.

Sources

Alberta Finance, Tax Plan, Chapter: Budget 2013

City of Lethbridge Tax Rate (Mills)
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Figure A.24.a
City of Lethbridge Property Tax Rate (Mills) 2013
Type City General Total
Residential 7.103 9.898
Multi Family 10.047 12.842
Commercial / Industrial 17.367 21.323

Notes

The Total Tax Rate (Mills) includes Alberta Learning Tax & Green Acres Foundation Tax.

Sources

City of Lethbridge, Department of Assessment & Taxation.

 

City of Lethbridge Tax Levy
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Figure A.25.a
City of Lethbridge 2013 Tax Levy
Type Tax Levy Portion
Industrial $18,037,318 13.2%
Commercial $29,951,439 22.0%
Multi-Family $5,566,489 4.1%
Residential $82,720,551 60.7%
Total $136,275,797 100.0%

Sources

City of Lethbridge, Department of  Assessment & Taxation.

 

Municipal Revenue Sources County of Lethbridge
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Figure A.26.a
2012 Municipal Revenue Sources, County of Lethbridge
Type Revenue Portion
Taxes $12,857,492 58.9%
Provincial & Federal Grants $1,974,345 9.1%
Sales of Goods & Services $4,155,140 19.1%
Other $2,824,276 12.9%
Total Revenue $136,275,797 100.0%

Notes

Taxes includes both net municipal property taxes and revenue derived from penalties and cost of taxes.

Sources

County of Lethbridge, 2012 Annual Report.

 

County of Lethbridge Assessed Value by Category
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Figure A.27.a
County of Lethbridge, Assessed Value by Category, 2013
Type Value Portion
Residential & Farmsites $862,644,560 50%
Commercial & Industrial $568,886,980 33%
Farmland $156,314,990 9.1%
Machinery & Equipment $136,934,120 7.9%
Total Assessment $1,724,780,650 100.0%

Sources

County of Lethbridge, Corporate Services

 

County of Lethbridge Tax Rates (Mills)
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Figure A.29.a
County of Lethbridge, 2013 Tax Rate (Mills)
Type General Total
Residential  4.5483 7.2408
Commercial & Industrial 9.3570 13.4700
Farmland 17.0070 19.6995
Machinery & Equipment 9.5700 9.6919

Notes

The Total Tax Rate (Mills) Includes Alberta Learning & Seniors Lodge Requisitions

Sources

County of Lethbridge, Corporate Services

 

International Tax Cost Comparison
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Notes

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.

Sources

Competitive Alternatives: KPMG's Guide to International Business Location, 2012 Edition.

International Cost Comparison
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Notes

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.

Sources

KPMG. Competitive Alternatives: KPMG's Guide to International Business Location 2010 Edition. 2010


Economic Development Lethbridge
308 Stafford Drive South
Lethbridge, Alberta, Canada   T1J 2L1

Phone: (403) 331-0022
Fax: (403) 331-0202
Toll Free: 1-800-332-1801

E-Mail: info@chooselethbridge.ca

Investment Inquiries Contact:
Heather McIntosh-Rivera, Director
Business Development & Operations

Phone: (403) 331-0022
E-Mail: heather@chooselethbridge.ca

Convention & Events Contact:
Kerry Lowe, Vice President
Convention Development & Partnerships

Phone: (403) 331-0022
E-Mail: kerry@chooselethbridge.ca

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