Between 45 to 50 per cent of all federal revenue comes from the personal income tax.
income tax rates
The bottom 20 per cent of income-earning families pay 0.7 per cent of all federal and provincial personal income taxes.
Sweden has comparatively high payroll tax rates at 31.4 per cent.
The top 20 per cent of income-earning households paid 61.4 per cent of the country’s personal income taxes in 2022.
Lower income tax rates incentivize people to work, save, invest and engage in entrepreneurial activities.
At 53.53 per cent, the province has the third-highest top personal income tax rate in Canada and the United States.
Tax reductions increase the expected net income from entrepreneurial innovation.
For the province's top earners, each new dollar they earn is taxed at 53.53 per cent.