Taxes across the country are going up and the biggest hikes are taking place in Ontario and British Columbia, according to a new report from a tax watchdog agency.

The Canadian Taxpayers Federation (CTF) released its annual New Year tax calculations, providing a glimpse of the year to come.

In years past, the CTF has been able to point out winning and losing provinces and/or income brackets, but this year, the picture is bleak across the board.

鈥淣early every working Canadian will be paying more in income and payroll taxes in 2011,鈥� said Derek Fildebrandt, CTF national research director. 鈥淚n every province, family and income scenario, our research finds that the governments take from inflation-adjusted incomes will increase, in some case substantially.鈥�

That being said, some provinces are being hit harder than others.

Ontario taxpayers are going to feel it the most, followed by British Columbians and Nova Scotians.

鈥淲ithout a doubt, Ontarians are the biggest losers when it comes to tax changes on Jan. 1 with an average 4.3 per cent increase in the scenarios we examined.鈥�

After adjusting for inflation, a single-earner Ontario family with an income of only $45,000 in 2010 will see a hike of a 5.1 per cent, costing that family an additional $389. A dual-income family making $80,000 will pay an extra $590 (3.5 per cent) and a single-income family making $100,000 will pay $1,035 (3.6 per cent) more.

British Columbians aren't much better off, facing a 2.9 per cent increase.

In B.C., a single-earner family with an income of $35,000 will face a hike of 8.1 per cent, costing them an additional $384 next year. A dual-income family making $80,000 in 2010 will see a hike of 1.8 per cent, meaning they will be hit with an additional bill of $312.

鈥淏ritish Columbians were expecting a 15 per cent cut in the provincial share of their income taxes on Jan. 1, but thanks to the cabinet flip-flop, they now face the second largest hike in the country after Ontario,鈥� said Fildebrandt.

For the full report, visit http://tinyurl.com/2ceer64