Which province has the lowest income tax in Canada?

Alberta has the lowest provincial income tax for most earners, with a flat 10% rate on the first $148,269 and no provincial sales tax (PST). For lower-income earners, Ontario is competitive due to its higher basic personal amount and surtax structure. Nunavut and NWT also have low rates but higher cost of living.

Which province has the lowest overall tax burden?

Alberta consistently ranks as the lowest overall tax province in Canada. It has no PST (only 5% GST), competitive income tax rates, no health premiums, and no payroll tax. Saskatchewan and Ontario are also competitive depending on income level. Quebec has the highest overall tax burden.

Does moving provinces actually save on taxes?

Yes. Your province of residence on December 31 determines your provincial tax rate for the entire year. Moving from a high-tax province (Quebec, Nova Scotia) to a low-tax province (Alberta) can save thousands per year. However, consider cost-of-living differences — lower taxes do not always mean lower total expenses.

Lowest Tax Provinces in Canada Ranked (2026)

Provincial Income Tax Rates Overview (2026)

Top Marginal Income Tax Rates (Combined Federal + Provincial)

Rank	Province	Top Combined Rate	Top Provincial Rate	PST/HST
1	Alberta	48.00%	15%	0% (GST only)
2	Ontario	53.53%	20.53%	13% HST
3	BC	53.50%	20.50%	12% (GST+PST)
4	Saskatchewan	47.50%	14.50%	11% (GST+PST)
5	NWT	47.05%	14.05%	0% (GST only)
6	Nunavut	44.50%	11.50%	0% (GST only)
7	Manitoba	50.40%	17.40%	12% (GST+PST)
8	New Brunswick	52.50%	19.50%	15% HST
9	PEI	51.37%	18.37%	15% HST
10	Newfoundland	54.80%	21.80%	15% HST
11	Nova Scotia	54.00%	21.00%	15% HST
12	Quebec	53.31%	25.75% (prov only)	14.975% (GST+QST)
13	Yukon	48.00%	15%	0% (GST only)

Ranking by top rate favours Alberta, but mid-income rankings differ. See below.

Tax at $50,000 Income (Single, No Deductions)

Rank	Province	Total Income Tax	Effective Rate
1	Nunavut	~$6,800	13.6%
2	Alberta	~$7,500	15.0%
3	NWT	~$7,000	14.0%
4	Ontario	~$7,600	15.2%
5	Yukon	~$7,400	14.8%
6	Saskatchewan	~$8,000	16.0%
7	BC	~$7,700	15.4%
8	Manitoba	~$8,600	17.2%
9	PEI	~$8,800	17.6%
10	New Brunswick	~$8,500	17.0%
11	Newfoundland	~$8,900	17.8%
12	Nova Scotia	~$9,100	18.2%
13	Quebec	~$9,500	19.0%

Tax at $100,000 Income (Single, No Deductions)

Rank	Province	Total Income Tax	Effective Rate
1	Alberta	~$22,500	22.5%
2	Nunavut	~$20,500	20.5%
3	NWT	~$21,000	21.0%
4	Ontario	~$23,200	23.2%
5	Saskatchewan	~$23,000	23.0%
6	Yukon	~$22,800	22.8%
7	BC	~$23,500	23.5%
8	Manitoba	~$25,400	25.4%
9	New Brunswick	~$25,000	25.0%
10	PEI	~$25,800	25.8%
11	Nova Scotia	~$26,500	26.5%
12	Newfoundland	~$26,800	26.8%
13	Quebec	~$28,000	28.0%

Sales Tax Comparison

Province	GST	PST/HST	Total Sales Tax
Alberta	5%	0%	5%
NWT	5%	0%	5%
Nunavut	5%	0%	5%
Yukon	5%	0%	5%
BC	5%	7% PST	12%
Saskatchewan	5%	6% PST	11%
Manitoba	5%	7% RST	12%
Ontario	—	13% HST	13%
Quebec	5% GST	9.975% QST	14.975%
New Brunswick	—	15% HST	15%
Nova Scotia	—	15% HST	15%
PEI	—	15% HST	15%
Newfoundland	—	15% HST	15%

Property Tax Comparison (Average Residential Rate)

Province/City	Approx. Residential Tax Rate	Tax on $500K Home
Vancouver, BC	~0.27%	~$1,350
Toronto, ON	~0.60%	~$3,000
Calgary, AB	~0.64%	~$3,200
Edmonton, AB	~0.72%	~$3,600
Ottawa, ON	~1.07%	~$5,350
Winnipeg, MB	~1.27%	~$6,350
Montreal, QC	~0.86%	~$4,300
Halifax, NS	~1.06%	~$5,300
Saint John, NB	~1.78%	~$8,900
Fredericton, NB	~1.56%	~$7,800

Property tax rates are set municipally and vary widely within provinces. Low assessment values can offset high rates (e.g., Vancouver has low rates but very high property values).

Overall Tax Burden Ranking

Rank	Province	Income Tax	Sales Tax	Property Tax	Health Premiums	Overall
1	Alberta	Low	Lowest (5%)	Moderate	None	Lowest
2	Saskatchewan	Moderate	Moderate (11%)	Moderate	None	Low
3	Ontario	Moderate	Moderate (13%)	Moderate	None (ended 2019)	Moderate
4	BC	Moderate	Moderate (12%)	Low rate, high values	MSP eliminated	Moderate
5	Manitoba	High	Moderate (12%)	High	None	Moderate-High
6	New Brunswick	High	Highest (15%)	High	None	High
7	PEI	High	Highest (15%)	Moderate	None	High
8	Nova Scotia	Highest	Highest (15%)	High	None	Highest (Atlantic)
9	Newfoundland	Highest	Highest (15%)	Moderate	None	High
10	Quebec	Highest	Highest (14.975%)	Moderate	None	Highest overall

Territories (NWT, Nunavut, Yukon) have low tax rates but very high cost of living, making direct comparisons less useful.

Tax Savings: Moving Provinces Example

$100,000 income, single, no deductions, homeowner ($500K home):

Category	Alberta	Ontario	Quebec	Nova Scotia
Income tax	$22,500	$23,200	$28,000	$26,500
Sales tax rate	5%	13%	14.975%	15%
Est. annual sales tax paid	$2,500	$5,200	$6,000	$6,000
Property tax ($500K home)	$3,400	$3,000	$4,300	$5,300
Total estimated tax	$28,400	$31,400	$38,300	$37,800
Savings vs Quebec	$9,900	$6,900	—	$500