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Edmonton - The World's Most Tax Competitive City

 

KPMG's Competitive Alternatives 2016 Special Report: Focus on Tax

ranks Edmonton as the most tax competitive city among international cities examined. The report compared the total tax costs faced by companies in 10 countries and 111 international cities including corporate income tax, other corporate taxes (property tax, capital tax, sales tax, local business tax), and labour-based taxes. Edmonton offered the lowest tax costs overall.

The table below illustrates Edmonton's competitive tax environment in North America - offering an astounding 24% tax cost advantage over the next closest US city.

City 
KPMG Total Tax Index Score
(US Baseline = 100) 
 Edmonton 40.6 
 Toronto 47.4 
 Vancouver 49.0 
 Montreal 57.4 
 Baton Rouge 64.9
 New Orleans 66.2 
 Houston 93.9


KPMG attributes Edmonton's top ranking to its low tax effect rates for both labour-based taxes and other corporate taxes. 

Edmonton strives to ensure a business-friendly tax environment without compromising the quality of infrastructure and services that support business and its workforce needs.

Consider the following advantages:

  • No provincial sales, payroll or capital taxes
  • 12% provincial corporate tax
  • Publically funded health care system - keeping payroll costs lower
  • No machinery and equipment (M & E) tax
  • Lowest property taxes (see KPMG Competitive Alternatives Report - Tax Comparison) per square foot of six major Canadian centres
  • No municipal business taxes other than in select Business Improvement Areas

Greater Edmonton Consistently Tops Competitive Rankings

Edmonton’s buoyant economic environment offers a cost-competitive business environment for most sectors – and stacks up well against global competitors.

The 2016 Competitive Alternatives, from KPMG, ranked Canada with a 7% cost advantage over the United States. Greater Edmonton – one of Canada’s most dynamic locations – also enjoys a favourable competitive cost advantage of between 1-17% depending on the industry sector evaluated.

The CBRE Market Outlook 2017 indicates for sectors where office property is a key cost input, current Class A properties located in downtown Edmonton have rental rates between $22.33 to $23.43 per square foot – beating other major Canadian cities such as Toronto and Vancouver by as much as 19-29%.

 

For More Information

Ken Mamczasz, P.Eng.

Economic Investment and Development
Regional and Economic Development
9th Floor, Edmonton Tower
10111-104 Avenue NW
Edmonton, AB T5J 0J4

Title Director, Economic Investment & Development
Telephone

780-496-6036

Email ken.mamczasz@edmonton.ca

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