Tax Freedom Day in Quebec is the second latest of all provinces
On June 10, Quebeckers will celebrate Tax Freedom Day, the day in the year that the average family has earned enough money to pay their taxes for all levels of government.
The Fraser Institute’s annual Tax Freedom Day calculations found that if Quebeckers were required to pay all of their taxes up front, they would have to pay each and every dollar they earned to governments prior to Tax Freedom Day.
In Quebec, Tax Freedom Day 2011 falls four days later than in 2010. It is the second latest in Canada, ahead of only Newfoundland and Labrador.
“Quebeckers face one of the highest tax burdens in Canada, a burden that grew even heavier as the Quebec government increased several taxes in 2011,” said Filip Palda, Fraser Institute senior fellow and professor at the École nationale d’administration publique, in a statement.
“By comparison, Tax Freedom Day in Ontario falls on June 4, almost one week earlier than in Quebec.”
When calculations of tax rates are averaged across Canada, Tax Freedom Day falls nationally on June 6.
Tax Freedom Day varies from province to province, depending on the taxation levels of provincial and local governments:
- Alberta continues to enjoy the earliest Tax Freedom Day on May 18,
- Prince Edward Island celebrates on May 27
- New Brunswick’s Tax Freedom Day falls on May 31
- In Manitoba, Tax Freedom Day falls on June 1
- Ontario reaches the point on June 4
- Saskatchewan and British Columbia realize tax Freedom Day on June 6
- Nova Scotia meets the mark on June 7
- Tax Freedom Day falls on June 10 in Quebec
- Newfoundland and Labrador has the latest Tax Freedom Day on June 19
The Fraser Institute notes that Newfoundland and Labrador has significant natural resources which provide the province with royalties. However, there is an ongoing debate whether natural resource royalties are actually a tax. If natural resources royalties are excluded from the Tax Freedom Day calculations, then Quebec has the latest Tax Freedom Day among all Canadian provinces.
Reasons for a Later Tax Freedom Day
“Quebec’s later Tax Freedom Day is mainly due to the increase in sales taxes, in large part caused by the increase in the Quebec Sales Tax rate from to 8.5 per cent from 7.5 percent on January 1 this year,” Palda said.
“As a result, the average Quebec family will pay $703 more in sales taxes in 2011.”
Quebec also increased several other taxes in 2011 including its recently introduced health tax, fuel taxes, mining taxes, and taxes on insurance premiums.
In 2011, the average Quebec family (with two or more individuals) will earn $81,398 and pay a total of $35,660 in taxes, for a total tax bill amounting to 43.8 per cent of its income.
The total tax bill for the average Quebec family will increase by $1,832 (5.4 per cent) in 2011. This is the highest percentage increase in total tax bills among all provinces.
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