There are 391,000 households in Nova Scotia. Households pay more than $3.5 billion to the provincial government each year. Tax revenue from households depends on the distribution of household income. The figure below divides households into six income ranges and shows the share of provincial household income earned by households in each range.
Income Distribution Across Canada
(Click chart to enlarge)
Households with income under $100,000 represent a larger share (66 per cent) of total income in Nova Scotia than the national average (56 per cent).
- 10 per cent of provincial household income is earned by those with household income below $30,000. These 125,000 households make up 32 per cent of all households in the province.
- 56 per cent of provincial income is earned by 209,000 households with income between $30,000 and $100,000. These 209,000 households make up 53 per cent of all households in the province.
- The remaining 56,000 households (15 per cent of all households in Nova Scotia) earn over $100,000 per year and account for 33 per cent of total income.
New Brunswick’s income distribution is similar to Nova Scotia’s, albeit with a higher percentage of income among households with less than $100,000 income (26 per cent). Ontario’s household income is more heavily concentrated among higher income households compared to Nova Scotia: households with income over $100,000 earn 50 per cent of total income. Alberta’s household income is even more heavily concentrated among higher income households: 53 per cent among households with income over $100,000.
Income distribution exerts a strong influence on the current provincial tax system. Among households, lower-to-middle income households account for larger share of total households in the province and total household income, relative to other provinces. This is important in determining how much of a burden the provincial tax system can exert on specific groups and the kind of revenue yield the province can expect.