Canada’s Most Tax-Evasive Provinces—Where Does Yours Rank?

Tax season in Canada is upon us. Beginning in February and running until April, now is the time when most Canadians can get a little stressed about tax returns. And believe it or not, some people will try anything to get out of paying the tax they owe. That’s what we call “tax evasion," and it’s a crime under section 380 of the Criminal Code.

According to a study by the Canada Revenue Agency, 42% of Canadians believe that tax avoidance and evasion have become more of a problem over the past couple of years. In general, Canadians consider tax evasion to be a problem because it can lead to higher taxes and reduce government revenue, as well as create a class divide.

We’d hope that as a nation of pretty honest people, Canadians wouldn't be too interested in trying to evade tax. But there’s only one way to know for sure.

We looked into the cumulative search volume for a variety of relevant keywords and phrases to determine which provinces had the most searches for tax evasion-related keywords.

Based on our findings, we were able to figure out exactly which provinces are most likely to evade tax.

As a Canadian resident, you’ll pay federal tax, as well as provincial tax, and you’ll have to declare certain things like your salary and capital gains. Unlike in the US, players in Canada don’t have to declare gambling winnings as taxable income.

The only exception here is if you’re a professional gambler, and in that case winnings are taxed the way any other income would be, for example, a salary or freelance income.

As a recreational gambler, no matter how lucky you get at an online or land-based casino, you don’t need to declare it as part of your tax return. That’s one less thing to worry about when you’re sorting your taxes.

So, which province has the dodgiest people? It’s British Columbia. The total search score for the province was 515, which was extremely high in relation to other provinces. And why are people in BC so interested in tax evasion?

With rates starting at 5.06%, taxes in BC aren’t actually amongst the highest in the country, but with top earners being taxed up to 20.5% by the province, perhaps they are the ones trying to avoid the extra costs. British Columbia uses a progressive tax system, so those higher rates of 20.5% will apply if you’re a higher earner.

Ontario actually tied with BC for first place, also with a search score of 515. According to a study done in 2023, Ontario had the third highest rates of combined tax (federal and provincial) in Canada and the US, reaching 53.53%.

Based on these figures—and the fact that some cities, like Toronto, have a notoriously high cost of living—it makes sense that some people out there might try everything they can to get out of paying the correct amount of tax.

Nova Scotia rounded out the top three, with a score of 432. Rates in the province range from 8.79% to 21% on both your regular income and any capital gains. While Nova Scotia lacks a few tax credits that other provinces have (like a carbon tax rebate), there are still some tax credits like child benefits and an affordable living credit.

There were also a few Canadian provinces that received very low search scores, meaning that in general, residents don’t tend to search for keywords associated with tax evasion.

At the very bottom of the list were Nunavut and Northwest Territories, both of which had absolutely no search volume for any of our keywords.

This can be pretty easily explained. Both Nunavut and Northwest Territories have some of the lowest provincial tax rates in all of Canada.

In Nunavut, the rates range from 4% to 11.5% of your income, which means you’ll pay roughly 19% - 44.5% once you add federal taxes. Northwest Territories has tax rates starting at 5.90% and going up to 14.05% for higher earners. 

If you’re paying such small amounts of tax in the first place, it definitely makes sense that you won’t be trying to weasel your way out of paying.

The Yukon Territory also did quite well, with a score of just 55, while New Brunswick received a score of 95. Just like all other provinces, both the Yukon and New Brunswick require residents to pay provincial taxes as well as federal taxes.

The Yukon’s rates range from 6.4% to 15%, while in New Brunswick it’s 9.40% to 19.50%, which is still lower than some other provinces but doesn’t really track with our assumption that lower tax correlates with less evasion! Perhaps New Brunswickers are just a little more honest.

Methodology

We analyzed search terms related to tax evasion in each Canadian province to determine which province is most likely to avoid tax.

Sources:

• Overall federal tax gap report: Estimates and key findings for non-compliance, tax years 2014-2018
• Tax evasion, understanding the consequences

Disclaimer 

The data in this article is intended for entertainment purposes only. Casinos.com does not claim any one province to be “more likely to evade taxes” than another. Please don’t use the information presented in this article as gambling or betting advice, and as always, please bet responsibly.

Fair Use Policy

The data and graphics on this page are free to use as long as proper credit is given by linking to the original article.