Effective Tax Rate by Province & Income Decile — 2000 to 2026
How Canada's provincial effective tax rates have shifted across income deciles since 2000. Ten income levels × thirteen provinces × twenty-six years of combined federal + provincial + CPP/EI burden, showing which provinces grew more or less progressive over time.
2026 Effective Tax Rate by Province & Income (combined federal + provincial + CPP/EI)
| Income Level | ON | BC | AB | QC | MB | SK | NS | NB | NL | PE | NT | YT | NU |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 10th (Low) $20,000 | 7.1% | 7.1% | 7.1% | 7.3% | 8.6% | 7.1% | 9.7% | 9.4% | 9.5% | 8.8% | 7.2% | 7.3% | 7.1% |
| 20th $30,000 | 12.5% | 12.5% | 12.9% | 15.5% | 15.9% | 14.2% | 16.2% | 16% | 15.8% | 15.6% | 13.5% | 13.7% | 12.6% |
| 30th $40,000 | 16.7% | 16.7% | 16.7% | 19.8% | 19.6% | 18.2% | 20.7% | 19.3% | 19% | 19.6% | 16.6% | 16.9% | 15.5% |
| 40th $50,000 | 19.7% | 18.9% | 18.9% | 22.4% | 21.9% | 20.6% | 23.5% | 21.3% | 21.5% | 22.3% | 18.5% | 18.8% | 17.3% |
| 50th (Median) $65,000 | 22.2% | 21.5% | 21.7% | 25.9% | 24.9% | 23.7% | 26.7% | 24.6% | 25% | 25.4% | 21.3% | 21.4% | 19.9% |
| 60th $80,000 | 24.6% | 23.6% | 24.1% | 28.7% | 27.2% | 26.2% | 29.5% | 27.2% | 27.7% | 28.3% | 23.5% | 23.7% | 22.1% |
| 70th $100,000 | 25.8% | 24.6% | 25.5% | 30.4% | 28.6% | 27.7% | 31.1% | 28.8% | 29.4% | 30.2% | 24.8% | 25% | 23.3% |
| 80th $130,000 | 28.5% | 26.7% | 27.2% | 32.9% | 31.2% | 29.4% | 33.2% | 31% | 31.5% | 32.5% | 26.9% | 26.7% | 25.1% |
| 90th $170,000 | 32.2% | 29.9% | 29.4% | 36.3% | 34% | 31.7% | 35.9% | 33.6% | 34% | 35.3% | 29.6% | 29.1% | 27.4% |
| 95th (Top) $250,000 | 37.4% | 34.7% | 33.3% | 40.6% | 38.1% | 35.4% | 40.3% | 37.9% | 38.2% | 39.5% | 33.8% | 33% | 31.4% |
Effective rate = (federal tax + provincial tax + CPP + EI) ÷ gross income. Quebec includes QPP + QPIP instead of CPP + EI. All figures computed from CRA-published 2026 brackets.
Time Series: Median Income ($65,000) Effective Rate by Province
| Year | ON | BC | AB | QC | MB | SK | NS | NB | NL | PE | NT | YT | NU |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 23.4% | 22.3% | 23.8% | 27.2% | 25.8% | 25.1% | 28.3% | 25.8% | 26.4% | 26.8% | 22.4% | 22.5% | 21% |
| 2025 | 22.8% | 21.7% | 22.2% | 26.6% | 25.4% | 24.4% | 27.3% | 25.1% | 25.8% | 26% | 21.8% | 21.9% | 20.4% |
| 2026 | 22.2% | 21.5% | 21.7% | 25.9% | 24.9% | 23.7% | 26.7% | 24.6% | 25% | 25.4% | 21.3% | 21.4% | 19.9% |
2024–2026 shows the CPP2 phase-in effect: CPP2 adds up to 4% on earnings between YMPE and YAMPE, increasing the effective rate slightly at the $65K level (which is near YMPE). The year-over-year change is too small to affect the effective rate at median income by more than ~0.2 points.
Key findings
- Territories lead at some incomes, not all. Nunavut has the lowest effective rate of any jurisdiction at $40,000 to $250,000; at the other income levels a province matches or beats the territories. Across the table, territorial effective rates run 7.1%–33.8%, vs 7.1%–40.6% for the provinces.
- Which province is lowest depends on income. BC has the lowest effective rate of any province at $65,000 to $130,000. Alberta has the lowest effective rate of any province at $170,000 to $250,000. At $20,000 to $50,000 two or more provinces are level for lowest. At $100,000, Alberta's effective rate is 25.5%, compared to 25.8% in Ontario, 24.6% in BC, and 30.4% in Quebec. BC's bottom bracket is 5.6% for 2026.
- The highest-taxed province also changes with income. Nova Scotia has the highest effective rate of any province at $20,000 to $130,000; Quebec is highest at $170,000 to $250,000. Quebec runs 0.2–4.6 points above Ontario depending on income, from the separate QPP/QPIP system and Quebec's own brackets despite the 16.5% federal abatement. Quebec residents also receive more direct provincial services (childcare, pharmacare, tuition) than other provinces — the effective rate alone does not tell the full value-for-tax story.
- CPP2 had minimal impact at median income. The second-tier CPP contribution applies only to earnings between the YMPE ($74,600 in 2026) and the YAMPE ($85,000). At $65,000, it does not apply. At $130,000+, it adds $416/year in employee contributions = ~0.3 points of effective rate.
Try the relevant calculators
- Income Tax Calculator — full federal + provincial breakdown at your income
- Take-Home Pay Calculator — net pay after all deductions by province
- Province Tax Comparison — compare any two provinces side by side
- Move Province Tax Calculator — Dec 31 residency rule impact
- Take-Home Pay by Province — the $ (rather than %) view of this same question, ranked at 9 salary levels
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