Calculate the tax difference between a British Columbia resident and a Quebec resident both having $20,000...

 

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Calculate the tax difference between a British Columbia resident and a Quebec resident both having $20,000 in interest income and $25,000 in capital gains. Combined marginal tax rates for individuals in top provincial tax brackets Capital Gains (%) Provinces/Territories Interest and Eligible Dividends (%) Non-eligible Dividends (%) Regular Income (%) British Columbia 45.80 22.90 28.68 37.98 Alberta 39.00 19.50 19.29 29.36 Saskatchewan 44.00 22.00 24.81 34.91 Manitoba 46.40 23.20 32.27 40.77 Ontario 49.53 24.77 33.82 40.13 Quebec 49.97 24.99 35.22 39.79 New Brunswick 46.84 23.42 27.35 36.02 Nova Scotia 50.00 25.00 36.06 39.07 Prince Edward Island 47.37 23.69 28.71 38.74 Newfoundland and Labrador 42.30 21.15 30.20 32.08 Calculate the tax difference between a British Columbia resident and a Quebec resident both having $20,000 in interest income and $25,000 in capital gains. Combined marginal tax rates for individuals in top provincial tax brackets Capital Gains (%) Provinces/Territories Interest and Eligible Dividends (%) Non-eligible Dividends (%) Regular Income (%) British Columbia 45.80 22.90 28.68 37.98 Alberta 39.00 19.50 19.29 29.36 Saskatchewan 44.00 22.00 24.81 34.91 Manitoba 46.40 23.20 32.27 40.77 Ontario 49.53 24.77 33.82 40.13 Quebec 49.97 24.99 35.22 39.79 New Brunswick 46.84 23.42 27.35 36.02 Nova Scotia 50.00 25.00 36.06 39.07 Prince Edward Island 47.37 23.69 28.71 38.74 Newfoundland and Labrador 42.30 21.15 30.20 32.08

Answer rating: 100% (QA)

Solution Step 1 First we will calculate tax under both countries Tax under British Columbia ... View the full answer