Which province has the lowest income tax in Canada?

Nunavut has the lowest bottom provincial rate at 4%, and Alberta has the lowest rates for most middle and high earners thanks to a 10% flat rate on the first $152,421 of income and a top rate of only 15%. Alberta also has the highest provincial Basic Personal Amount at $22,948 for 2026, meaning more income is tax-free.

Which province has the highest income tax in Canada?

Nova Scotia and Quebec have among the highest provincial income tax rates. Nova Scotia's top marginal rate is 21% on income over $154,200, while Quebec's top rate is 25.75% on income over $133,217. However, Quebec residents receive a 16.5% federal tax abatement that partially offsets the higher provincial rate.

How is Quebec tax different from other provinces?

Quebec administers its own provincial income tax through Revenu Québec, separate from the CRA. Quebec residents receive a 16.5% federal tax abatement, pay a lower EI rate (1.30% vs 1.63%) because they contribute to the Quebec Parental Insurance Plan (QPIP) instead, and use the Quebec Pension Plan (QPP) rather than CPP. Quebec also charges QST instead of HST.

QPIP stands for Quebec Parental Insurance Plan (Régime québécois d'assurance parentale). It provides maternity, paternity, parental, and adoption benefits to Quebec residents. Because QPIP covers parental benefits that EI covers in other provinces, Quebec workers pay a lower federal EI rate (1.30% vs 1.63%) plus a separate QPIP premium. The total payroll deduction is roughly comparable.

Should I consider sales tax too when comparing provinces?

Yes. Provincial sales taxes significantly affect your purchasing power. Alberta has no provincial sales tax (only 5% GST), while Nova Scotia charges 15% HST. Ontario charges 13% HST, British Columbia has 5% GST + 7% PST, and Quebec charges 5% GST + 9.975% QST. A lower income tax rate in one province may be offset by higher sales or property taxes.

Do territories have different tax rates than provinces?

Yes. The three territories — Yukon, Northwest Territories, and Nunavut — each set their own income tax brackets and rates, just like provinces. Nunavut has the lowest bottom rate at 4%, while Northwest Territories starts at 5.9%. Territorial residents also receive the Northern Residents Deduction, which can reduce taxable income by up to $22 per day for living in a prescribed northern zone.

Province Tax Comparison Canada

Q: Does CPP differ by province?

CPP contribution rates and maximums are the same across all provinces except Quebec. Quebec uses the Quebec Pension Plan (QPP) instead of CPP. The QPP has slightly different rates but very similar contribution limits. For 2026, the CPP employee rate is 5.95% on pensionable earnings up to $74,600, with CPP2 at 4% on earnings between $74,600 and $85,000.

Q: How does self-employment affect provincial tax?

Provincial income tax rates apply the same to self-employment income as to employment income. The key difference is in payroll deductions: self-employed individuals pay both the employee and employer portions of CPP (11.9% total up to the YMPE), and they are not required to pay EI premiums unless they opt in. This means self-employed take-home pay varies less between provinces since the CPP double contribution is the same everywhere.

Compare your income tax, CPP, and EI across all 13 Canadian provinces and territories. Find which province gives you the highest take-home pay for the 2026 or 2025 tax year.

Quick Answer

Your province determines your provincial tax rate, CPP/QPP contributions, and EI premiums. Alberta has the lowest provincial tax burden for most earners; Nova Scotia and Quebec have among the highest. Federal tax is identical everywhere — only provincial tax and certain payroll deductions differ.

Key Facts — 2026

Provinces & Territories

13 unique tax systems

Lowest Provincial Rate

Alberta — 10% flat to $152k

Quebec Difference

QPIP + QPP instead of EI/CPP

CPP Rate (all provinces)

5.95% (QPP in Quebec)

Federal Tax

Identical across Canada

Comparison Settings

Annual Income (CAD)

Tax Year

Employment Status

Moving from Nova Scotia to Nunavut saves you $6,172/year

Province	Federal Tax	Provincial Tax	CPP/QPP	EI	QPIP	Total Deductions	Take-Home Pay	Eff. Rate
Nunavut	$10,293	$3,140	$4,446	$1,123	$0	$19,002	$60,998	24.0%
British Columbia	$10,293	$4,362	$4,446	$1,123	$0	$20,225	$59,775	25.0%
Northwest Territories	$10,293	$4,375	$4,446	$1,123	$0	$20,237	$59,763	25.0%
Ontario	$10,293	$4,455	$4,446	$1,123	$0	$20,317	$59,683	25.0%
Yukon	$10,293	$4,625	$4,446	$1,123	$0	$20,488	$59,512	26.0%
Alberta	$10,293	$4,954	$4,446	$1,123	$0	$20,817	$59,183	26.0%
Saskatchewan	$10,293	$6,769	$4,446	$1,123	$0	$22,632	$57,368	28.0%
New Brunswick	$10,293	$7,508	$4,446	$1,123	$0	$23,371	$56,629	29.0%
Manitoba	$10,293	$7,579	$4,446	$1,123	$0	$23,442	$56,558	29.0%
Newfoundland and Labrador	$10,293	$8,035	$4,446	$1,123	$0	$23,898	$56,102	30.0%
Quebec	$8,594	$9,829	$4,446	$896	$395	$24,161	$55,839	30.0%
Prince Edward Island	$10,293	$8,448	$4,446	$1,123	$0	$24,310	$55,690	30.0%
Nova Scotia	$10,293	$9,312	$4,446	$1,123	$0	$25,174	$54,826	31.0%

Take-Home vs Total Tax (Top 6)

How Provincial Taxes Work in Canada

Canadian income tax is collected at two levels: federal and provincial (or territorial). The federal government sets one set of brackets that apply uniformly across the country, while each province and territory sets its own brackets and rates. Your total income tax is the sum of both. This is why two people earning the same salary can have very different take-home pay depending on where they live.

Each province also sets its own Basic Personal Amount (BPA) — the amount of income you can earn before provincial tax kicks in. Alberta’s BPA is $22,948 for 2026, the highest in the country, while Nova Scotia’s is just $8,718. The federal BPA of $16,452 applies everywhere as a non-refundable credit at 14%.

Beyond income tax, CPP contributions are the same across all provinces at 5.95% on pensionable earnings up to $74,600 (the YMPE), with CPP2 at 4% on earnings between $74,600 and $85,000. The exception is Quebec, which uses the Quebec Pension Plan (QPP) with slightly different rates but similar contribution limits.

Employment Insurance (EI) premiums are 1.63% of insurable earnings up to $68,900 in all provinces except Quebec. Quebec residents pay a lower EI rate of 1.30% because they contribute to the Quebec Parental Insurance Plan (QPIP) separately. QPIP covers maternity and parental benefits that EI provides in other provinces.

When all of these are combined — federal tax, provincial tax, CPP/QPP, EI/QPIP — the total deductions from your paycheque can differ by thousands of dollars depending on your province. For a typical $80,000 salary, the difference between the lowest-tax and highest-tax province can be $3,000 to $5,000 per year in take-home pay.

Provincial Top Marginal Rates — 2026

Each province has its own bracket structure. The table below shows the top provincial rate, number of brackets, and Basic Personal Amount for 2026.

Province / Territory	Top Rate	Brackets	BPA
Alberta	15%	5	$22,948
British Columbia	20.5%	7	$12,932
Manitoba	17.4%	3	$16,222
New Brunswick	19.5%	4	$13,409
Newfoundland and Labrador	21.3%	7	$11,121
Northwest Territories	14.05%	4	$17,859
Nova Scotia	21%	5	$8,718
Nunavut	11.5%	4	$19,292
Ontario	13.16%	5	$12,197
Prince Edward Island	16.65%	3	$13,878
Quebec	25.75%	4	$19,091
Saskatchewan	14.5%	3	$19,009
Yukon	15%	5	$16,581

Worked Example: $80,000 Salary

Scenario: You earn $80,000 per year as an employee. How does your take-home pay compare in Ontario, Alberta, and Quebec?

Federal tax (same everywhere): On $80,000, federal tax is 14% on the first $58,523 = $8,193, plus 20.5% on the remaining $21,477 = $4,403. Gross federal tax: $12,596. After the BPA credit ($16,452 × 14% = $2,303), net federal tax is approximately $10,293.

Ontario: Provincial tax on $80,000 is 5.05% on the first $54,367 = $2,746 plus 9.15% on the next $25,633 = $2,345. Gross: $5,091. After BPA credit ($12,197 × 5.05% = $616), net provincial tax is approximately $4,475. Total income tax: ~$14,768. After CPP ($4,231), CPP2 ($216), and EI ($1,123), take-home is roughly $59,662.

Alberta: Provincial tax on $80,000 is 10% flat = $8,000. After BPA credit ($22,948 × 10% = $2,295), net provincial tax is approximately $5,705. Total income tax: ~$15,998. After CPP and EI (same amounts), take-home is roughly $58,432. Alberta’s higher flat rate on middle income offsets its generous BPA at this salary level.

Quebec: Provincial tax on $80,000 is 14% on the first $54,746 = $7,664 plus 19% on $25,254 = $4,798. Gross: $12,462. After BPA credit ($19,091 × 14% = $2,673), net provincial tax is approximately $9,789. Quebec residents receive a 16.5% federal abatement, reducing federal tax by ~$1,698. However, QPIP premiums add an additional deduction. Take-home is roughly $55,900 — about $3,800 less than Ontario.

Note: These are approximate calculations for illustration. The calculator applies all credits and produces precise results.

Frequently asked questions

Which province has the lowest income tax?

Nunavut has the lowest bottom rate at 4%, and Alberta has the lowest rates for most middle and high earners with a 10% flat rate on the first $152,421. Alberta also has the highest provincial BPA at $22,948. For typical employment income between $50,000 and $150,000, Alberta and Nunavut consistently produce the lowest provincial tax bills.

Which province has the highest income tax?

Nova Scotia and Quebec have the highest provincial rates. Nova Scotia’s top rate is 21% on income over $154,200, and Quebec’s top rate is 25.75% over $133,217. However, Quebec’s 16.5% federal abatement partially offsets this. Newfoundland and Labrador also has high rates, with a top rate of 21.3% on income over $580,233.

How is Quebec tax different?

Quebec administers its own provincial income tax through Revenu Québec. Residents receive a 16.5% federal tax abatement, pay a lower EI rate (1.30% vs 1.63%), contribute to QPIP for parental benefits, and use the Quebec Pension Plan (QPP) instead of CPP. Quebec also charges QST (9.975%) instead of participating in the HST system.

Does CPP differ by province?

CPP rates and maximums are identical across all provinces except Quebec, which uses the Quebec Pension Plan (QPP). QPP has slightly different rates but comparable contribution limits. For 2026, the CPP/QPP employee rate is 5.95% on earnings up to the YMPE of $74,600, with CPP2 at 4% on the portion between $74,600 and $85,000.

What is QPIP?

QPIP (Quebec Parental Insurance Plan) provides maternity, paternity, parental, and adoption benefits to Quebec workers. Because QPIP covers what EI provides elsewhere, Quebec employees pay a lower federal EI premium (1.30% instead of 1.63%) plus a separate QPIP premium. The combined cost is roughly similar to the standard EI rate in other provinces.

Should I consider sales tax too?

Absolutely. Sales tax significantly affects your real purchasing power. Alberta has no provincial sales tax (5% GST only), while Nova Scotia charges 15% HST. Ontario has 13% HST, BC has 5% GST + 7% PST, and Quebec has 5% GST + 9.975% QST. A lower income tax province with higher sales tax may not leave you better off overall.

Do territories have different tax rates?

Yes. Yukon, Northwest Territories, and Nunavut each set their own income tax brackets and rates. Nunavut has the lowest bottom rate at 4%, while the NWT starts at 5.9%. Territorial residents may also claim the Northern Residents Deduction — up to $22 per day for living in a prescribed northern zone — which reduces taxable income.

How does self-employment affect provincial tax?

Provincial income tax rates apply equally to employment and self-employment income. The main difference is in payroll deductions: self-employed individuals pay both employee and employer CPP (11.9% total up to the YMPE) and are not required to pay EI unless they opt in. This means the CPP cost is the same across provinces, and the provincial tax difference drives most of the variation in take-home pay.

Sources

Related Calculators

Last updated April 2026. Reflects 2026 tax year rates.