Nova Scotia’s tax effort includes a number of different types of taxes. Each tax has a different effect on the economy and income distribution. The proceeding figure focuses on the composition of provincial tax effort (measured as a share of GDP) in Nova Scotia and the other Canadian provinces.
Canada’s Provincial Tax Composition
(Click chart to enlarge)
The Nova Scotia tax system is reliant on fewer bases, where we exert a higher effort than the national average. In other areas, the provincial tax system places no burden.
- Nova Scotia has the second highest personal income tax effort after Quebec.
- Nova Scotia’s consumption tax effort (including sales, tobacco and fuel taxes) is the second highest after Prince Edward Island.
- The share of Nova Scotia’s corporate income taxes to GDP is the fourth highest in the country.
- Nova Scotia does not have a significant provincial property effort, although this does not consider the Mandatory Education Rate.
- Nova Scotia has low reliance on other taxes such as payroll taxes.
Alberta and Newfoundland have very high GDP because of energy production and this skews assessment of their tax effort and tax mix. Quebec provides different levels of public service and its citizens receive federal personal income tax abatement, not reflected in this chart.