The Conference Board of Canada took a deep dive into provincial taxes and found Ontario’s business-tax burden is the second-highest in the country, after only Quebec.
The report calculated the tax burden by including corporate income tax, social security contributions, payroll taxes, property taxes and sales taxes, minus subsidies, as a share of gross output, between 2008 and 2011.
Saskatchewan, New Brunswick, Alberta, and Newfoundland and Labrador were the provinces with the lowest net business-tax burden ratios.
The report was released as the legislature was set to continue debate on the second reading of the Ontario Retirement Pension Plan bill.
The analysis found that Quebec’s payroll taxes “contribute significantly” to the difference between it and the other provinces.
The report also found that Ontario has the fifth-lowest provincial personal-tax burden, with those whose incomes are below $100,000 paying less than their counterparts in most other provinces and those making more than $100,000 paying more.
"Ontario's overall ranking is based on a relatively modest provincial personal income tax burden for taxpayers earning less than $100,000, but a relatively high burden on those making more than that," Julie Adès, senior economist with the Conference Board of Canada, said in a press release.
The figures do not include the personal income-tax rate of 12.16 per cent introduced 2014 for those earning between $150,000 and $220,000 in Ontario.