Which Provinces Changed Their Tax Rates in 2025?

Provincial income tax is a major component of every Canadian’s total tax bill — often rivalling or exceeding federal tax at mid to higher incomes. For 2025, most provinces simply indexed their brackets for inflation. A few made more substantive changes. Here is the full picture.

How Provincial Indexation Works

Most provinces index their tax brackets annually to either:

• The provincial CPI (consumer price index), or
• The federal indexation factor (2.7% for 2025)

Indexation prevents “bracket creep” — where inflation alone pushes taxpayers into higher rates. Provinces that do not index their brackets effectively impose a real tax increase every year.

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Alberta

Alberta automatically indexes its brackets to Alberta CPI, which was approximately 2.6% for 2025.

2025 Alberta Tax Brackets:

Income Range	Alberta Rate
$0 – $148,269	10%
$148,269 – $177,922	12%
$177,922 – $237,230	13%
$237,230 – $355,845	14%
Over $355,845	15%

Alberta remains the lowest-taxed province for most income levels, partly because it has no provincial sales tax. No rate changes were legislated for 2025 — only the standard indexation adjustment applied.

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British Columbia

BC indexes its brackets to BC CPI. The 2025 indexation was approximately 3.1%.

2025 BC Tax Brackets:

Income Range	BC Rate
$0 – $45,654	5.06%
$45,654 – $91,310	7.70%
$91,310 – $104,835	10.50%
$104,835 – $127,299	12.29%
$127,299 – $172,602	14.70%
$172,602 – $240,716	16.80%
Over $240,716	20.50%

BC’s top rate of 20.50% (combined with 33% federal) gives BC one of the highest combined marginal rates in Canada on incomes above ~$240,000. No structural rate changes were made for 2025.

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Ontario

Ontario indexes its brackets to Ontario CPI. The 2025 indexation was approximately 2.5%.

2025 Ontario Tax Brackets:

Income Range	Ontario Rate
$0 – $52,886	5.05%
$52,886 – $105,775	9.15%
$105,775 – $150,000	11.16%
$150,000 – $220,000	12.16%
Over $220,000	13.16%

Ontario Surtax applies to Ontario tax owing before the Ontario tax reduction:

• 20% surtax if Ontario tax exceeds $5,710
• 36% additional surtax if Ontario tax exceeds $7,307

The surtax thresholds are also indexed. Ontario’s surtax is unusual among provinces and can push effective provincial rates noticeably higher for incomes in the $90,000–$200,000 range.

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Quebec

Quebec indexes to Quebec CPI. The 2025 indexation was approximately 2.9%.

2025 Quebec Tax Brackets:

Income Range	Quebec Rate
$0 – $53,255	14%
$53,255 – $106,495	19%
$106,495 – $129,590	24%
Over $129,590	25.75%

Quebec has the highest provincial rates in the country at upper-middle incomes. However, Quebec residents benefit from the 16.5% federal abatement, which reduces federal tax payable. Effective combined tax is more competitive than the headline rates suggest.

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Saskatchewan

Saskatchewan does not automatically index its brackets to inflation. This means bracket thresholds remain fixed until the government chooses to adjust them — effectively a slow tax increase over time.

2025 Saskatchewan Tax Brackets:

Income Range	Saskatchewan Rate
$0 – $49,720	10.50%
$49,720 – $142,058	12.50%
Over $142,058	14.50%

No changes were made for 2025. Saskatchewan’s provincial brackets have remained at these income levels since 2023 with no indexation.

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Manitoba

Manitoba partially indexes its brackets. The basic personal amount was increased modestly, but the bracket thresholds themselves are largely static.

2025 Manitoba Tax Brackets:

Income Range	Manitoba Rate
$0 – $47,000	10.80%
$47,000 – $100,000	12.75%
Over $100,000	17.40%

Manitoba’s top rate of 17.40% is among the highest for mid to upper incomes. The province has been working on tax relief through increases to the basic personal amount, which was $15,780 for 2025.

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Nova Scotia

Nova Scotia does not index its brackets. Thresholds have not changed since 2013.

2025 Nova Scotia Tax Brackets:

Income Range	Nova Scotia Rate
$0 – $29,590	8.79%
$29,590 – $59,180	14.95%
$59,180 – $93,000	16.67%
$93,000 – $150,000	17.50%
Over $150,000	21.00%

Nova Scotia’s top rate of 21% makes it one of the most expensive provinces for high earners. The province has periodically discussed tax reform but no changes were enacted for 2025.

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New Brunswick

New Brunswick indexes its brackets to NB CPI. The 2025 indexation was modest (approximately 1.5%).

2025 New Brunswick Tax Brackets:

Income Range	New Brunswick Rate
$0 – $47,715	9.40%
$47,715 – $95,431	14.82%
$95,431 – $176,756	16.52%
Over $176,756	19.50%

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Prince Edward Island

PEI indexes its brackets. The basic personal amount was adjusted to approximately $12,000 for 2025.

2025 PEI Rates (unchanged from 2024 in structure):

Income Range	PEI Rate
$0 – $32,656	9.65%
$32,656 – $64,313	13.63%
Over $64,313	16.65%

PEI also applies a surtax of 10% on provincial tax exceeding $12,500.

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Newfoundland and Labrador

Newfoundland indexes its brackets to the Newfoundland and Labrador CPI.

2025 NL Tax Brackets (approximate):

Income Range	NL Rate
$0 – $43,198	8.70%
$43,198 – $86,395	14.50%
$86,395 – $154,244	15.80%
$154,244 – $215,943	17.80%
$215,943 – $275,870	19.80%
$275,870 – $551,739	20.80%
Over $551,739	21.30%

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Territories

Yukon, Northwest Territories, and Nunavut also maintain their own tax brackets, generally indexed annually. Combined with the lower cost of federal tax due to abatements and northern credits, territorial residents have unique tax situations. The Northwest Territories and Nunavut both have relatively flat and low provincial/territorial rates.

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Key Takeaways

• Most provinces applied routine inflation indexation for 2025 — no sweeping structural changes
• Alberta and BC remain the provinces most Canadians compare when considering interprovincial mobility for tax purposes
• Saskatchewan and Nova Scotia (no indexation) see a gradual real tax increase over time
• Quebec’s federal abatement means headline provincial rates overstate the actual Quebec disadvantage for most earners
• Provincial tax on the same $100,000 salary can vary by more than $5,000 depending on province

Sources

• CRA — Provincial and territorial tax rates for individuals
• Individual provincial budget documents and revenue agency publications for 2025