Nova Scotia, Newfoundland and Labrador, and P.E.I. have highest personal income tax rates in Canada at $50,000 of income

HALIFAX, NS, July 3, 2025 /CNW/ - At $50,000 of income, taxpayers in Nova Scotia, Newfoundland and Labrador, and Prince Edward Island face the highest marginal provincial income tax rates in Canada, finds a new study published today by the Fraser Institute, an independent non-partisan Canadian think-tank.

"High marginal provincial taxes aren't just a problem for high income earners in Atlantic Canada. Middle-income earners in the region also face higher tax rates on the next dollar that they earn than most other Canadians," said Ben Eisen, senior fellow at the Fraser Institute and author of Tax Competitiveness Challenges in Atlantic Canada.

Higher tax rates create harmful economic incentives with respect to work, savings, and investment, and make the region less attractive to business investment and entrepreneurship, which are all key to economic growth.

Specifically, at $50,000 of income, Nova Scotia has the highest provincial income tax rate (14.95 per cent) on the next dollar earned followed by Newfoundland and Labrador (14.50 per cent) and Prince Edward Island (13.47 per cent) compared to the other provinces.

New Brunswick (9.40 per cent) has the lowest rate in Atlantic Canada but still far higher than Ontario (5.05 per cent) and Alberta (8.00 per cent), which have the lowest rates in the country at that income level.

The study analyzed statutory income tax rates at various levels of income ranging from $50,000 to $300,000 and found Atlantic Canada's rates are generally uncompetitive at every level.

"If policymakers in Atlantic Canada want to attract more professionals, entrepreneurs and private sector investment to spur economic growth and help create jobs, they should reduce income taxes," Eisen said.

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The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, Halifax and Montreal and ties to a global network of think-tanks in 87 countries. Its mission is to improve the quality of life for Canadians, their families and future generations by studying, measuring and broadly communicating the effects of government policies, entrepreneurship and choice on their well-being. To protect the Institute's independence, it does not accept grants from governments or contracts for research. Visit www.fraserinstitute.org

SOURCE The Fraser Institute