The Canadian Atlantic provinces have economies that are more cyclical and dependent on specific industries than the rest of Canada. Because of that, each province has a low-income tax reduction that puts money back in the hands of those who need it most.”The delicate economies of the Atlantic provinces traditionally suffer worse than average in recessionary times,” says Dartmouth, Nova Scotia, accountant Mark McCarthy. “Each of the four provinces has introduced a tax break to benefit those who are hardest hit. The programs are similar to each other, with slight variation between provinces.”

 

Only one taxpayer per family can claim the low-income tax reduction, but in some provinces, the unused portion can be transferred to a spouse's return.

Only one taxpayer per family can claim the low-income tax reduction, but in some provinces, the unused portion can be transferred to a spouse’s return.

Prince Edward Island

As with Nova Scotia’s program, the low-income tax reduction for Prince Edward Island can be claimed by anyone who meets one of these conditions:

  • the taxpayer is 19 years or older
  • the taxpayer is married or has a common-law partner
  • the taxpayer was a parent.

Unlike Nova Scotia, an unused tax reduction portion is transferable to your spouse. Only a spouse or dependant may be used, not both. Prince Edward Island includes a reduction for each child under 18, though a child used as an eligible dependant cannot be claimed again. Prince Edward Island also grants additional reductions for seniors. For more details on Prince Edward Island deductions, please view this link.

Newfoundland Labrador: Low Income Tax Reduction details here.

Nova Scotia: Affordable Living Tax Credit information here.

New Brunswick: Low Income Tax Reduction details are at the bottom of this page.

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