The Canadian Taxpayers Federation is warning Ontario residents to get ready to pay more taxes in the new year.
Ontarians are forecasted to be among the hardest hit when income tax hikes are brought in next year, according to the federation.
The group says increases in payroll taxes, employment insurance premiums and Canada Pension Plan contributions are to blame.
"We found that Ontarians were coming out with an effective loss in terms of real taxable income," said Derek Fildebrandt of the Canadian Taxpayers Federation.
The federation used inflation-adjusted income numbers to examine the taxes that will come off your paycheque in the coming year. The study did not account for other taxes such as the HST.
In Ontario, a family with an income of $45,000 will pay 5.1 per cent more in taxes -- that's an extra $389. Meanwhile, a two-income family earning $80,000 will pay 3.5 per cent more, or $590.
Fildebrandt says small adjustments are normally made to our income taxes, which are usually inline with inflation.
However, he says the changes for 2011 will particularly affect Ontario residents because the province's inflation rate is significantly above the national average for the last fiscal year.
