Cost of Living
Lethbridge residents enjoy a higher quality of life and a lower cost of
living.
Low housing
prices and affordable consumer goods and services all contribute to the cost
advantages of Lethbridge. We consistently achieve high rankings in
cost-of-living and quality-of-life studies. Consider these facts:
- By living in Alberta, you won’t be burdened by a provincial sales tax. This
means paying at least 7% less for goods and services compared to other Canadian
provinces and most U.S. states.
- Alberta’s tax advantage comes from a low single-rate tax system, coupled
with the highest basic and spousal exemptions in Canada.
- Lower transportation costs are a result of short commute times (get to work
in 10 to 15 minutes), complimented by reasonably priced parking. Plus, Alberta
has the lowest gasoline tax among the provinces.
Percentages of Average Household Expenditures |
|
 |
Comparison of Annual Average Property Tax & Utility Cost
in Alberta |
|
 |
Cost of Living Comparative Analysis |
|
Cost
of Living Comparative Analysis |
|
Lethbridge |
Calgary |
Edmonton |
Red Deer |
Grande Prairie |
Medicine
Hat |
Federal Income Tax (Includes CPP &
EI) |
$8,846 |
$8,846 |
$8,846 |
$8,846 |
$8,846 |
$8,846 |
Provincial Income Tax |
$2,605 |
$2,605 |
$2,605 |
$2,605 |
$2,605 |
$2,605 |
Health Premiums |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
Gasoline Tax * |
$172 |
$172 |
$172 |
$172 |
$172 |
$172 |
Total Federal & Provincial
Taxes |
$11,623 |
$11,623 |
$11,623 |
$11,623 |
$11,623 |
$11,623 |
Mortgage Costs ** |
$21,950 |
$33,111 |
$31,544 |
$27,497 |
$23,361 |
$21,831 |
Property Tax & Utility Charges
(Average) |
$4,410 |
$4,348 |
$4,728 |
$4,461 |
$6,196 |
$3,682 |
Consumer Goods *** |
$11,508 |
$12,012 |
$12,000 |
$11,832 |
$12,132 |
$11,484 |
Parking **** |
$672 |
$5,836 |
$4,200 |
$1,728 |
$1,250 |
$624 |
Total Household Charges |
$38,540 |
$55,307 |
$52,472 |
$45,518 |
$42,939 |
$37,621 |
Net Disposable
Income |
$9,837 |
-$6,930 |
-$4,095 |
$2,859 |
$5,438 |
$10,756 |
Federal Income Tax (Includes CPP &
EI) |
$15,972 |
$15,972 |
$15,972 |
$15,972 |
$15,972 |
$15,972 |
Provincial Income Tax |
$4,605 |
$4,605 |
$4,605 |
$4,605 |
$4,605 |
$4,605 |
Health Premiums |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
Gasoline Tax * |
$172 |
$172 |
$172 |
$172 |
$172 |
$172 |
Total Federal & Provincial
Taxes |
$20,749 |
$20,749 |
$20,749 |
$20,749 |
$20,749 |
$20,749 |
Mortgage Costs ** |
$21,950 |
$33,111 |
$31,544 |
$27,497 |
$23,361 |
$21,831 |
Property Tax & Utility Charges
(Average) |
$4,410 |
$4,348 |
$4,728 |
$4,461 |
$6,196 |
$3,682 |
Consumer Goods *** |
$15,344 |
$16,016 |
$16,000 |
$15,776 |
$16,176 |
$15,312 |
Parking **** |
$672 |
$5,836 |
$4,200 |
$1,728 |
$1,250 |
$624 |
Total Household Charges |
$42,376 |
$59,311 |
$56,472 |
$49,462 |
$46,983 |
$41,449 |
Net Disposable
Income |
$16,875 |
-$60 |
$2,779 |
$9,789 |
$12,268 |
$17,802 |
Federal Income Tax (Includes CPP &
EI) |
$20,372 |
$20,372 |
$20,372 |
$20,372 |
$20,372 |
$20,372 |
Provincial Income Tax |
$6,605 |
$6,605 |
$6,605 |
$6,605 |
$6,605 |
$6,605 |
Health Premiums |
$0 |
$0 |
$0 |
$0 |
$0 |
$0 |
Gasoline Tax * |
$172 |
$172 |
$172 |
$172 |
$172 |
$172 |
Total Federal & Provincial
Taxes |
$27,149 |
$27,149 |
$27,149 |
$27,149 |
$27,149 |
$27,149 |
Mortgage Costs ** |
$21,950 |
$33,111 |
$31,544 |
$27,497 |
$23,361 |
$21,831 |
Property Tax & Utility Charges
(Average) |
$4,410 |
$4,348 |
$4,728 |
$4,461 |
$6,196 |
$3,682 |
Consumer Goods *** |
$19,180 |
$20,020 |
$20,000 |
$19,720 |
$20,220 |
$19,140 |
Parking **** |
$672 |
$5,836 |
$4,200 |
$1,728 |
$1,250 |
$624 |
Total Household Charges |
$46,212 |
$63,315 |
$60,472 |
$53,406 |
$51,027 |
$45,277 |
Net Disposable
Income |
$26,639 |
$9,536 |
$12,379 |
$19,445 |
$21,824 |
$27,574 |
 |
* |
Based on annual purchases of $2,000 worth of gasoline per year
at a rate of $1.05 per litre, as per Natural Resources Canada, Average Retail
Prices for Regular Gasoline in 2011, Alberta. |
** |
Based on the 2010 Average Price of a New Home with Annual mortgage payments
based on a 10% down payment, 5.25% interest with 25 years amortization, monthly
payments and 5 year closed mortgage. |
*** |
The methodology incoporates the Statistics Canada's Average Household
Expenditures consumer categories of: food, household operations, furnishings and
equipment, clothing, and personal care expenses, reported as a percentage of
average household income before tax, 2009 for Edmonton. The 2010 Alberta Spatial
Price All-Commodity Index is then applied to the other Alberta cities as
Edmonton is the base city of the index. |
**** |
The data for Calgary and Edmonton is based on the 2011 CBD Parking Rate
Survey prepared by Colliers International. For the smaller cities of Grande
Prairie, Lethbridge, Medicine Hat and Red Deer the data is based on average
daily parking rate utilizing city-issued parking permits or daily parking
meters, based on 10 hours per day for 19.4536 days per month for 12 months,
which is consistent with the Colliers International Survey Methodology.
|
I. |
Data is current as of June 2011. |
II. |
Although every effort was made in good faith to ensure the accuracy of the
information contained herein, Economic Development Lethbridge accepts no
warranty, nor accepts liability, for any incorrect, incomplete or misleading
information or its improper use. |
2010 Alberta Spatial Price Survey, 2011 CBD Parking Rate Survey prepared by
Colliers International, 2010 Residential Property Taxes and Utility Charges
Survey - The City of Edmonton, Canadian Mortgage and Housing Corporation, City
of Calgary, City of Edmonton, City of Grande Prairie, City of Lethbridge, City
of Medicine Hat, City of Red Deer, Natural Resources Canada, Average Retail
Prices for Regular Gasoline 2011, Statistics Canada 2009 Average Household
Expenditures, Edmonton Alberta, December 2010 release and TD Mortgage
Calculator. |
All-Commodity Price Comparison |
|
 |
The "basket of goods" used in this survey is comprised of those goods and
services perceived to be regularly purchased by Alberta consumers (based on the
Survey of Household Spending) living in cities and medium/small sized towns. The
survey items are judged to be commonly available in the selected communities to
allow for price comparability.
For further details about individual items within
this commodities price comparison, contact Heather McIntosh-Rivera at
403-331-0022 ext. 109 or
heather@chooselethbridge.ca.
Interprovincial Tax & Health Care Premium Comparison -
2011 |
|
Interprovincial Tax & Health Care Premium Comparison -
2011 |
|
AB |
BC |
SK |
MB |
ON |
QC |
NB |
NS |
PE |
NL |
Provincial Income Tax |
-$1,335 |
$295 |
-$624 |
$265 |
-$1,480 |
-$4,587 |
$246 |
$579 |
$1,064 |
$377 |
Provincial Sales Tax |
- |
$208 |
$609 |
$966 |
$412 |
$1,330 |
$1,238 |
$1,372 |
$1,348 |
$1,360 |
Health Care Premium |
- |
- |
- |
- |
$225 |
$200 |
- |
- |
- |
- |
Payroll Tax |
- |
- |
- |
$236 |
$266 |
$612 |
- |
- |
- |
$97 |
Fuel Tax |
$270 |
$435 |
$450 |
$345 |
$441 |
$486 |
$321 |
$465 |
$474 |
$495 |
Total |
-$1,065 |
$938 |
$435 |
$1,812 |
-$136 |
-$1,959 |
$1,805 |
$2,416 |
$2,886 |
$2,329 |
Provincial Income Tax |
$2,578 |
$1,907 |
$2,587 |
$4,512 |
$1,656 |
$2,468 |
$3,947 |
$4,472 |
$4,717 |
$3,786 |
Provincial Sales Tax |
- |
$1,661 |
$982 |
$1,544 |
$2,010 |
$2,309 |
$1,999 |
$2,217 |
$2,200 |
$2,212 |
Health Care Premium |
- |
$1,089 |
- |
- |
$563 |
$200 |
- |
- |
- |
- |
Payroll Tax |
- |
- |
- |
$591 |
$665 |
$1,531 |
- |
- |
- |
$243 |
Fuel Tax |
$405 |
$653 |
$675 |
$518 |
$662 |
$729 |
$482 |
$698 |
$711 |
$743 |
Total |
$2,983 |
$5,310 |
$4,244 |
$7,165 |
$5,556 |
$7,237 |
$6,428 |
$7,387 |
$7,628 |
$6,984 |
Provincial Income Tax |
6,824 |
4,997 |
7,688 |
9,994 |
5,580 |
10,511 |
8,687 |
10,654 |
10,301 |
8,778 |
Provincial Sales Tax |
- |
$2,539 |
$1,462 |
$2,315 |
$3,020 |
$3,434 |
$3,014 |
$3,293 |
$3,297 |
$3,321 |
Health Care Premium |
- |
$1,089 |
- |
- |
$788 |
$200 |
- |
- |
- |
- |
Payroll Tax |
- |
- |
- |
$985 |
$1,108 |
$2,552 |
- |
- |
- |
$405 |
Fuel Tax |
$405 |
$653 |
$675 |
$518 |
$662 |
$729 |
$482 |
$698 |
$711 |
$743 |
Total |
$7,229 |
$9,278 |
$9,825 |
$13,812 |
$11,158 |
$17,426 |
$12,183 |
$14,645 |
$14,309 |
$13,247 |
Calculations are based on other provinces' tax parameters known as of
February 10, 2011. |
* |
Business is assumed to bear between 25% and 60% of the
provincial sales tax, depending upon the provincial tax regime. |
* |
Health care premiums are net of premium subsidies. |
* |
In provinces that impose payroll taxes, 75% is assumed to be borne by
employees and 25% by employers. The same 75/25 split is assumed for the net
health care premiums. |
* |
Fuel tax is based on estimated consumption of 3,000 litres per year for
one-income families and 4,500 litres for two-income families. |
* |
RRSP/RPP contributions of $1,000, $9,700 and $16,800 are included in the
calculation of personal income tax for the $30,000, $75,000 and $125,000
families, respectively. |
* |
For two-income families, income and RRSP/RPP contributions are split 60/40
between the two spouses. |
* |
The children in each family are assumed to be 6 and 12 years
old. |
Source: Alberta Finance & Enterprise, Tax Plan, Budget 2011 |
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