Nova Scotia has a $33 billion economy. In 2006, the federal, provincial and municipal governments collected over $10.7 billion in taxes, re-directing approximately one third of the economy’s output to support public programs, infrastructure and debt payments.
The federal government is the largest recipient of tax revenues from Nova Scotians, collecting $4.6 billion. The provincial government collects almost as much tax revenues as the federal government: $4.2 billion. Local governments as well as direct contributions to social insurance plans (Employment Insurance, for example) collect about $1 billion in tax revenues.
Who Pays and Receives Taxes in Nova Scotia
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Tax revenues are paid by two main groups of taxpayers – households and corporations.
Households pay personal taxes of $3.9 billion as well as the majority of $4.2 billion in taxes on production, imports and property (sales taxes, excise taxes, and municipal property taxes). In contrast, corporations in Nova Scotia pay less than $1 billion in income and capital taxes. Businesses and households share the $1.7 billion burden of social insurance contributions such as Canada Pension Plan and Employment Insurance.