The Manitoba Advantage
Appendix 1: 2007 Interprovincial Comparison of Personal Costs and Taxes
Since 1999, Manitoba’s overall provincial rankings for personal costs and taxes have been among the best in Canada. For 2007, Manitoba ranks first, second or third best in total costs among the six representative families.
- The following charts show that Manitoba remains one of the most affordable provinces in which to live, with among the lowest costs for child care, gasoline tax, automobile insurance, electricity and housing costs.
- Manitobans enjoy a high standard of living with a combination of modest taxation levels and low living costs.1 Manitoba is a more competitive and attractive location for both new and expanding businesses.
- A superior quality of living with lower personal costs and taxes – that is The Manitoba Advantage.
Single Person Earning $30,000
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Single Parent Earning $30,000
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One-Earner Family of Four Earning $40,000
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One-Earner Family of Four Earning $60,000
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Two-Earner Family of Four Earning $60,000
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Two-Earner Family of Five Earning $75,000
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Interprovincial Comparison of Taxes Net of |
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Single Person Earning $50,000
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1 includes rent or mortgage costs, property taxes, public transit costs or auto insurance, child care, telephone service, electricity and heating costs
NOTES
Taxes1, charges and living costs are based on information available on February 1, 2007, for the following major urban centres in each province: Vancouver, Calgary, Regina, Winnipeg, Toronto, Montréal, Fredericton, Halifax, Charlottetown and St. John’s.
Auto Insurance coverage includes $2 million Third Party Liability, a $500 All Perils Deductible, accident benefit and $2 million Standard Policy Form #44 family protection coverage for those jurisdictions without no-fault injury coverage, and SAAQ (La Societé de l’assurance automobile du Quebec) injury protection in Montréal. The driver is married, age 35, has been accident- and conviction-free for 15 or more years; the auto is driven to work (a distance of 15 km one way was used when required by insurers). Rates were provided by The Insurance Corporation of British Columbia (BC), SGI Canada (SK), and Manitoba Public Insurance (MB) for those provinces. Rates from other urban centres are the average of the quotes from 10 private insurers available in those provinces. Discounts for second or multiple vehicles are not included in the auto insurance calculations.
Auto Insurance for the 2003 Chevrolet Impala and the 2000 Chevrolet Cavalier are used in these examples. The single-parent insures the 2000 Cavalier and the two-parent families insure the 2000 Cavalier and the 2003 Impala.
Child Benefits represent provincial programs comparable to the Canada Child Tax Benefit.
Child Care is based on average fees for full-time preschool care for the three year old and the five year old, before and after school care for the seven year old, and six weeks of summer day camp for the seven year old. Quebec figures are based on $7 per day for care. Average fees were based on Early Childhood Care and Education in Canada: Provinces and Territories, and were updated by a survey by Manitoba Finance of different cities.
Electricity charges are based on annual consumption of 9,000 kWh for the two-parent family at $40,000; 12,000 kWh for the two-parent family at $60,000 and $75,000; 6,000 kWh for the single-parent family; and 4,500 kWh of usage for the tenant. Rates do not include municipal taxes or charges, and are based on residential rates in effect February 1, 2007.
Gasoline Tax is based on annual consumption of 2,000 litres for single-vehicle families and 3,000 litres for the two-earner family at $60,000 and $75,000; this includes the 6 cents and 1.5 cents per litre levy applied by Vancouver and Montréal respectively and provincial sales tax has been applied to the wholesale price in Prince Edward Island.
Health Premiums are annual premiums for hospital insurance and medical services in provinces which levy them. They include Quebec’s Prescription Drug Plan.
Home Heating charges are based on annual consumption of 2,300 cubic metres of natural gas for the standard townhouse, or 3,450 cubic metres of natural gas for the standard two-storey. For the Atlantic provinces, the figures represent the BTU equivalent consumption of fuel oil. Refundable home-heating benefits have been deducted from home-heating costs for Alberta, Nova Scotia and Newfoundland and Labrador.
Mortgage Costs are based on one-half the average home prices for a standard townhouse for families with $40,000 of income, or a standard two-storey for families with $60,000 and $75,000 of income, per the Royal LePage Survey of Canadian House Prices, Fourth Quarter 2006, for a 25-year term, amortized at a five-year interest rate of 6.492%.
Property Taxes are based on the assessed values for a standard townhouse for families with $40,000 of income, or a standard two-storey for families with $60,000 and $75,000 of income, per the Royal LePage Survey of Canadian House Prices, Fourth Quarter 2006.
Provincial Income Tax is calculated for a single renter with $30,000 earned income, a single parent with one child who rents and has $30,000 in earned income2, and three homeowners with $40,000, $60,000 and $75,000 of earned income2, respectively. Families include one income earner, a spouse and two dependent children (ages 3 and 7), two income earners and two dependent children (ages 3 and 7), or two income earners and three dependent children (ages 3, 5 and 7). For two-earner families, one spouse is assumed to earn 60% of the family income while the other spouse earns 40%. Personal non-refundable credits used include the CPP/QPP and EI contribution credits. For the single parent, child-care costs unique to each province have been deducted from income. For two-earner families, child-care costs have been deducted from the income of the spouse with the lower income. Gross Quebec personal income tax has been reduced by the 16.5% abatement from federal income tax. Refundable sales tax credits and provincial tax reductions and rebates have been deducted from income tax payable. Rental credits are included in income tax, but property tax credits are shown separately.
Provincial Income Tax after Graduate Credits and Tuition Rebates Single person at $50,000 Income tax includes the Saskatchewan Post-secondary graduate tax credit ($1,100), the New Brunswick Tuition Tax Cash Back ($2,000), the Nova Scotia Post-secondary graduate tax credit ($2,000) and the Manitoba tuition fee income tax rebate ($2,500). Includes credits for CPP, EI and the basic personal amount.
Rent is from Canada Mortgage and Housing Corporation’s Rental Market Survey, October 2006, and is based on the average one-bedroom apartment rent for each urban centre for the single person, and the average two-bedroom apartment rent for the single parent family.
Retail Sales Tax is based upon an average expenditure basket at the selected gross income levels from the 2005 Survey of Household Expenditures (Statistics Canada), inflated to 2007 values and adjusted for family size.
Transit Fares are based on adult (single zone) monthly pass rates in effect in February 2007. The Charlottetown fare is based on adult tickets for 240 working days. The full impact of the federal non-refundable Public transit passes amount has reduced the cost of transit fees shown for the single individual example.
Telephone charges are the basic service rates for individual residences.
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1 Tables reflect 2007 budget changes for British Columbia, Saskatchewan, Ontario, Quebec, New Brunswick, Nova Scotia and Manitoba, as well as
the federal budget.
2 Earned income is net of the Universal Child Care Benefit however, the Universal Child Care Benefit has been used in the calculation of taxable income.
