Taxes are an important way that governments can provide the infrastructure and services that make our communities so great.
But as individuals, Nova Scotians face a big tax burden – more onerous than most other jurisdictions in Canada. For example, a Nova Scotian who earns $100,000 can expect to take home $70,179. Whereas the same income in British Columbia would create a take home amount of $76,352.
Nova Scotia (and many other provinces) faces high tax rates due to a number of factors, including an aging demographic and skyrocketing health care budgets. Nova Scotia has one of the oldest populations in the country with 17.2% of the province over the age of 65, and a projection of 25% by the year 2025.
Older populations tend to consume more health care, which means higher health care budgets. Nova Scotia currently spends roughly 41% of its annual budget on health care. As our population ages, that number is likely to increase.
As you think about your financial decisions, keep in mind the tax issues facing Nova Scotia and its aging demographic. Increases in tax rates and/or reduction in services should be factored into your long-term planning to ensure your retirement plan stays intact.
You can learn more about taxes and probate here.