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Question 1: You are moving from New Brunswick to British Columbia. Your regular $65,000 salary will be subject to BC taxes. As is the case

Question 1: You are moving from New Brunswick to British Columbia. Your regular $65,000 salary will be subject to BC taxes. As is the case in Canada and the provinces the first $15,000 of your income will not be subject to any taxes. Also, you expect to receive $3,000 in dividends and make $2,000 in profit (capital gain) in a stock sale. The tax tables are included below. Dividends are subject to a 38% gross up and the combined dividend tax credits for NB are 10% and 15% in BC. As well, capital gains are taxed at 50% of income. Two questions: 1) What total income taxes would you pay in both provinces? And 2) By how much (in dollars) will your net tax bill change from moving to BC from NB?

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BC NB Federal Tax Cumulative Cumulative Tax Cumulative Tax Rate Bracket Income Tax Rate Bracket Income Tax Rate Bracket Income 5.069 S 37,606 9.68% $ 39,305 15.00% $ 43,953 7.07% S 37,607 S 75,213 14.82% $ 39,304 $ 78,609 22.00% S 43,954 S 87,907 10.50% $ 11,141 $ 86,354 16.52% $ 49,193 $ 127,802 26.00% $ 48,363 $ 136,270 12.29% S 18,504 $ 104,858 17.8496 S 127.802 $ 255,604 29.00% S136,270 S 272,540 14.70% S 45,142 S150,000 16.80% $ 150,000 $300,000 BC NB Federal Tax Cumulative Cumulative Tax Cumulative Tax Rate Bracket Income Tax Rate Bracket Income Tax Rate Bracket Income 5.069 S 37,606 9.68% $ 39,305 15.00% $ 43,953 7.07% S 37,607 S 75,213 14.82% $ 39,304 $ 78,609 22.00% S 43,954 S 87,907 10.50% $ 11,141 $ 86,354 16.52% $ 49,193 $ 127,802 26.00% $ 48,363 $ 136,270 12.29% S 18,504 $ 104,858 17.8496 S 127.802 $ 255,604 29.00% S136,270 S 272,540 14.70% S 45,142 S150,000 16.80% $ 150,000 $300,000

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