VICTORIA: The BC division of the Canadian Taxpayers Federation (CTF) today released tax comparison details for 2002.

"The good news is that provincial taxes are headed down; the bad news is that there is no new federal tax relief in 2002, and in fact - federal payroll taxes are headed up," said CTF-BC director Mark Milke.

Summary of 2002 tax changes:

2002 provincial personal income tax reductions range from 12.6% to 17.2% depending on income level. Due to the progressive structure of income tax brackets (the more you make the greater percentage of your income is owed in tax), lower income taxpayers will see the greatest percentage reduction while high-income earners will see the greatest dollar reduction. A $40,000 income will see a $336 reduction in provincial income tax in 2002 when compared with 2001.

All five provincial bracket thresholds and four federal bracket thresholds will rise with inflation.

The provincial basic personal exemption (from income tax) will rise from $8,000 to an estimated $8,168. The federal basic personal exemption will rise from $7,412 to an estimated $7,634.

There are no new federal personal income tax cuts in 2002.

Business taxes will be reduced provincially and federally.
Federal payroll taxes are rising - again. The overall payroll tax increase in 2002 will be $157 for someone with a $40,000 income.

The new federal airport tax begins April 1, 2002 and will range from $12 to $24.