Minimum Wage and Tax Rate by Province

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Minimum Wage Increase and Tax Rate by Province

In Canada, Minimum Hourly Wage is different by province. The responsibility for enacting and enforcing labor laws, including the minimum wage, is under the Provincial/Territory Jurisdiction.

The tax rate also differs by province. Most of the listed products and properties in Canada are before taxes. For example, when you buy a $300 shoes, the rate will be different by province because of the taxes percentage that will be added.

Here are the tax terminologies:

GST – Goods and Services Tax is a Canadian value-added tax levied on most goods and services sold for domestic consumption. The tax is levied to provide revenue for the federal government.

HST – Harmonized Sales Tax is used in provinces where both the federal goods and services tax (GST) and the regional provincial sales tax (PST) have been combined into a single value-added sales tax.

PST – Provincial Sales Tax is a retail sales tax that applies when a taxable good or service is purchased

Furthermore, the following are the lists of the hourly minimum wages for adult workers as well as the tax rate in each province and territory of Canada:

Alberta                                

$11.20                                                  

5% GST

• On October 1, 2016, the minimum wage will rise to $12.20. The minimum wage will raise a further $1.40 to $13.60 per hour on October 1, 2017, and by 1.40 to $15 per hour on October 1, 2018.
• Source: https://work.alberta.ca/employment-standards/minimum-wage.html

British Columbia             

$10.85                                                  

7%GST + 5%PST = 12%

• On September 15, 2017, the minimum wage will rise to at least $11.25
• As of April 1, 2013, the HST rate no longer applies in British Columbia.
• Source: http://www2.gov.bc.ca/gov/content/employment-business/employment-standards-advice/employment-standards/factsheets/minimum-wage

Manitoba

$11.00

8%GST + 5%PST = 13%

Source: http://www.gov.mb.ca/labour/standards/doc,minimum-wage,factsheet.html

New Brunswick                

$10.65                                                  

15% HST

• In 2017, New Brunswick’s minimum wage will increase from $10.65 to $11.00. It will then be adjusted annually relative to the Consumer Price Index.
• As of July 1, 2016, the HST rate increased from 13% to 15%.
• Source: http://www2.gnb.ca/
• content/dam/gnb/Departments/petlepft/PDF/es/FactSheets/MinimumWageOvertime.pdf

Newfoundland & Labrador        

$10.50                                  

15% HST

• As of July 1, 2016, the HST rate increased from 13% to 15%.
• Source: http://assembly.nl.ca/Legislation/sr/regulations/rc960781.htm

Northwest Territories                  

$12.50                                  

5% GST

• The regulation does not specify that there must be an annual increase.
• Source: https://www.ece.gov.nt.ca/advanced-education/employment-standards/frequently-asked-questions/minimum-wage

Nova Scotia                                       

$10.70                                  

15% HST

• On April 1 of each year, the minimum wage is adjusted annually relative to the Consumer Price Index.
• Source: http://novascotia.ca/lae/employmentrights/minimumwage.asp

Nunavut                                             

$13.00                                  

5% GST

• The minimum wage is adjusted annually on April 1.
• Source: http://nu-lsco.ca/faq-s

Ontario                                                

$11.25                                  

13% HST

• On October 1, 2016, the minimum wage will increase to $11.40 per hour on October 1, 2016.
• Source: https://www.labour.gov.on.ca/english/es/pubs/guide/minwage.php

Prince Edward Island                    

$10.75                                  

14% HST

• On October 1, 2016, the minimum wage will increase to $11.00 per hour.
• Source: http://www.gov.pe.ca/labour/index.php3?number=1025372&lang=E

Quebec                                                  

$10.75                                  

9.975% QST + 5% GST =14.975%

• Source: http://www.cnt.gouv.qc.ca/en/wages-pay-and-work/wages

Saskatchewan                                  

$10.50                                  

5%GST + 5%PST = 10%

• On October 1, 2016, minimum wage will increase to 10.72.
• On October 1 of each year, the minimum wage is adjusted annually relative to the Consumer Price Index and Average Hourly Wage.
• Source: http://www.saskatchewan.ca/

Yukon                                                  

$11.07                                  

5% GST

• On April 1 of each year, the minimum wage is adjusted annually relative to the Consumer Price Index.
• Source: http://www.community.gov.yk.ca/es.html

 

Based on the above lists, on which Canadian province or territory is the best place to live in? We love to hear your comments.