Posting into higher tax region

[Judy]

I've lived in Cold Lake for the past two years, and am moving to Bagotville next month.

I know I'm in for a big slap in the face when I get there because QC taxes are so much higher than Alberta's.

Has anyone else had to deal with this?

Will I have to pay some backpay income taxes?  I'm filing in Alberta, and will be living in Bagotville on 1 April 06. 

 

[Thirstyson]

To have to pay Quebec taxes, you have to have resided in Quebec on Dec 31st. If you were still in AB then, your safe. Enjoy the cut on your pay stubbs in the future  > I'm paying QC taxes, last year I lived in ON at the end of the year and got a massive refund

 

[George Wallace]

To have to pay Quebec taxes, you have to have resided in Quebec on Dec 31st. If you were still in AB then, your safe. Enjoy the cut on your pay stubbs in the future  > I'm paying QC taxes, last year I lived in ON at the end of the year and got a massive refund

That being said, next year you will have resided in QC on the 31st of Dec and be required to pay taxes at the Quebec rates for all twelve months.  So for those few months you live in Alberta, prior to posting, you will have to ensure you remember that you will have to cover the difference in tax rates.  You will land up paying those months back to match the higher rate next year.

 

[M Feetham]

I was posted from NS to QC in July 2005. Gonna get  hit pretty hard. Not looking forward to it. My advice for anyone coming to Quebec is to start paying quebec rates as soon as you even think you might get posted here three years from next Wednesday maybe if you career manager remembers who you are. The worst that happens is you get money back if you don't get posted, or you may only have to pay a couple of hundred dollars.Any money you get from IRP use to buy down you mortgage or slap into RSP's, that will help cut the taxes too.
Marc

 

[GINge!]

Either start paying more taxes, or fill up any unused RRSP contribution room. It is quite shock, and I reckon AB to QC is about the most extreme example.

My AB Prov income tax was $5367. Moved to NB, and it went to $8072. Nearly $3000 annually. Just about double that again when you factor in a spouse's tax. Yet there is no PLD for NB.

All in favour of an Alberta or Ontario-based flat tax for the CF, say aye!

 

[QV]

AYE!

So is it too bad going from Alberta to Ontario?

 

[Deleted member 6930]

Rick is glad you left him in Cold Lake to enjoy the lower taxes.

Have fun in Baggotville.

 

[GINge!]

AYE!

So is it too bad going from Alberta to Ontario?

Nope, for my IPC it would be $5637 for AB versus $5904 for ON (for 2005). But ON has PST...

 

[Dirt Digger]

Ontario also has the Health Premium...

...and just because you don't use it doesn't mean you don't pay it.

 

[Judy]

Rick is glad you left him in Cold Lake to enjoy the lower taxes.

Have fun in Baggotville.

I miss Rick!!!! That little guy misses me too, I bet


There's no PLD for Bagotville either, I'm sure.  The region is more expensive tax-wise, but the houses here are so cheap!!! I just bought a house here, and for what I paid I could have gotten a trailer in Cold Lake.  I guess it evens out.

 

[LCIS-Tech]

When I got posted from Pet to Gagetown, my disposable income not only dropped by $200/month, but come tax time, I had a $1200 Tax bill, since I had only paid NB taxes for 6 of the 12 months. When I got posted BACK to Kingston, my disposable income went up by $200/month, and I ended up with an extra $1000 back at tax-time. Now, as I prepare to move back to lovely Gagetown yet again, I am going to be smart about it, and make sure that I squirrel away about $1200 extra for the tax-collectors in the new year.

There SHOULD be some sort of adjustment for Military pers. We ALL pay the same Tax rate, regardless of location. Something like that. Find the national average, and that is what every member of the CF pays, so that we don;t end up getting screwed when Tax-time arrives, especially during a Posting year...

 

[geo]

In spite of what everyone says, Quebec is not the province with the highest level of income tax... but it is the only province that collects it's own taxes

Personal Income Tax Rate Components —
2005 (Including surtaxes).

Basic Tax Federal 1
15.00% $0
22.00% $35,595
26.00% $71,190
29.00% $115,739

Alberta
10.00% $0

British Columbia
6.05% $0
9.15% $33,061
11.70% $66,123
13.70% $75,917
14.70% $92,185

Manitoba
10.90% $0
14.00% $30,544
17.40% $65,000

New Brunswick
9.68% $0
14.82% $32,730
16.52% $65,462
17.84% $106,427

Newfoundland and Labrador
10.57% $0
16.16% $29,590
18.02% $59,180
PLUS…………SURTAX 9% of tax above $7,032

Northwest Territories
5.90% $0
8.60% $33,811
12.20% $67,622
14.05% $109,939
No surtax

Nova Scotia
8.79% $0
14.95% $29,590
16.67% $59,180
17.50% $93,000
PLUS…. SURTAX 10% of tax above $10,000

Nunavut
4.00% $0
7.00% $35,595
9.00% $71,190
11.50% $115,739
No surtax

Ontario
6.05% $0
9.15% $34,010
11.16% $68,020
PLUS … SURTAX 20% of tax above $3,929
                       + 36% of tax above $4,957

Prince Edward Island
9.80% $0
13.80% $30,754
16.70% $61,509
PLUS …….. SURTAX 10% of tax above $5,200

Quebec 1
16.00% $0
20.00% $28,030  ( LESS 16.5% FED ABATEMENT)
24.00% $56,070  ( LESS 16.5% FED ABATEMENT)
No surtax AND In Quebec, federal tax reduced by 16.5% abatement.


Saskatchewan
11.00% $0
13.00% $36,770
15.00% $105,056
No surtax

Yukon
7.04% $0
9.68% $35,595
11.44% $71,190
12.76% $115,739
PLUS…. SURTAX 5% of tax above $6,000

 

[Judy]

That may be true, but I've been here two months and have already seen my paycheque decrease.

Plus, it seems like the gov't here likes to invent all these fees that we have to pay.  It seems like they're constantly asking for some type of tax or fee.

Crazy.

The housing here is quite cheap though, so I guess it evens out.

 

[geo]

Pay as you play user fees is a thing of today and the future.
For the most part, I have no problem paying for good service (big problem paying for "no service")

Cost of living is cheaper.... ayup
If you have kids, the cheaper daycare could be of interest...

lets face it. If the Province was sooooo overpriced, most of the population would have run away a long time ago and someone somewhere would have gotten the hint.