March 22, 2026
Provincial Tax Comparison: Where in Canada Has the Lowest Tax?
Compare combined federal and provincial income tax rates across all 13 provinces and territories at $75,000 and $150,000 income. A complete rate table for 2025.
Canadian Income Tax Calculator →
Federal + provincial tax owed on your income, with marginal rate breakdown.
Canada’s federal income tax is the same for everyone, but provincial and territorial tax rates vary dramatically. A resident of Alberta keeps significantly more of a $150,000 income than a resident of Nova Scotia. This comparison covers all 13 provinces and territories at two key income levels: $75,000 and $150,000.
How Provincial Tax Works
Every Canadian pays both federal tax and provincial (or territorial) tax based on their province of residence on December 31 of the tax year. Quebec has a unique arrangement — residents also file a separate provincial return with Revenu Québec and receive a federal abatement.
Provincial tax is calculated on the same taxable income as federal tax. Each province sets its own:
- Tax brackets and rates
- Basic personal amount (BPA)
- Tax credits (surtaxes, health levies, etc.)
Combined Federal + Provincial Tax: $75,000 Income (2025)
These estimates include federal and provincial income tax. They exclude CPP, EI, and provincial surtaxes where applicable.
| Province / Territory | Provincial Rate at $75k | Estimated Combined Tax | Effective Rate |
|---|---|---|---|
| Alberta (AB) | 10% flat on first $148,269 | ~$16,200 | ~21.6% |
| Northwest Territories (NT) | 6%–14.05% | ~$16,800 | ~22.4% |
| Yukon (YT) | 6.4%–9% | ~$17,000 | ~22.7% |
| British Columbia (BC) | 7.7%–12.29% | ~$17,500 | ~23.3% |
| Saskatchewan (SK) | 10.5%–14.5% | ~$17,800 | ~23.7% |
| Manitoba (MB) | 10.8%–17.4% | ~$18,200 | ~24.3% |
| Ontario (ON) | 5.05%–11.16% | ~$18,000 | ~24.0% |
| New Brunswick (NB) | 9.4%–21% | ~$18,400 | ~24.5% |
| Nunavut (NU) | 4%–11.5% | ~$17,200 | ~22.9% |
| Prince Edward Island (PE) | 9.65%–18.75% | ~$18,600 | ~24.8% |
| Newfoundland and Labrador (NL) | 8.7%–21.8% | ~$18,800 | ~25.1% |
| Nova Scotia (NS) | 8.79%–21% | ~$19,200 | ~25.6% |
| Quebec (QC) | 14%–25.75% | ~$20,500 | ~27.3% |
Note: Quebec figures include the 16.5% federal abatement — federal tax is lower in Quebec but provincial tax is higher. Figures are estimates; individual circumstances vary.
Combined Federal + Provincial Tax: $150,000 Income (2025)
| Province / Territory | Top Marginal Rate at $150k | Estimated Combined Tax | Effective Rate |
|---|---|---|---|
| Alberta (AB) | ~48.00% | ~$44,000 | ~29.3% |
| Northwest Territories (NT) | ~44.37% | ~$43,500 | ~29.0% |
| Yukon (YT) | ~48.00% | ~$44,200 | ~29.5% |
| British Columbia (BC) | ~46.12% | ~$46,500 | ~31.0% |
| Saskatchewan (SK) | ~47.50% | ~$46,800 | ~31.2% |
| Ontario (ON) | ~46.41% | ~$47,200 | ~31.5% |
| Manitoba (MB) | ~50.40% | ~$48,600 | ~32.4% |
| New Brunswick (NB) | ~51.00% | ~$49,200 | ~32.8% |
| Nunavut (NU) | ~44.50% | ~$43,800 | ~29.2% |
| Prince Edward Island (PE) | ~51.37% | ~$49,600 | ~33.1% |
| Newfoundland and Labrador (NL) | ~54.80% | ~$51,000 | ~34.0% |
| Nova Scotia (NS) | ~54.00% | ~$50,800 | ~33.9% |
| Quebec (QC) | ~53.31% | ~$51,500 | ~34.3% |
Marginal rates are approximate combined federal + provincial rates at mid-$150k income. Use the Income Tax Calculator for your precise figures.
The Alberta Advantage
Alberta has no provincial sales tax (PST) and relatively low income tax rates — a 10% flat provincial rate that does not increase until income exceeds $148,269 in 2025. At $150,000 income, an Albertan pays roughly $7,000–$8,000 less in provincial income tax than a Nova Scotian or Newfoundlander at the same income.
The after-tax benefit of living in Alberta vs high-tax provinces:
| Comparison | $75,000 Income | $150,000 Income |
|---|---|---|
| Alberta vs Nova Scotia | ~$3,000/year | ~$6,800/year |
| Alberta vs Quebec | ~$4,300/year | ~$7,500/year |
| Alberta vs Ontario | ~$1,800/year | ~$3,200/year |
Quebec: High Provincial Tax, Unique Benefits
Quebec has the highest combined marginal rates for middle and upper earners, but residents receive:
- Heavily subsidized childcare ($11.05/day in 2025 for regulated spaces)
- Lower post-secondary tuition than other provinces
- The Quebec Parental Insurance Plan (QPIP) — more generous than federal EI parental benefits
- Provincial drug insurance program (RAMQ)
- Distinct tax filing (T1 + TP-1 provincial return)
For families with young children, the childcare savings alone can offset a substantial portion of the higher tax burden.
Ontario Surtax
Ontario applies a provincial surtax of up to 36% on top of basic provincial tax for high earners. The surtax kicks in at approximately $5,554 of Ontario tax payable (20% surtax) and increases to 36% above roughly $7,108 of Ontario tax. This pushes Ontario’s effective top marginal rate above what the headline bracket rates suggest.
The Territories: Low Provincial Rates, High Cost of Living
The Northwest Territories, Yukon, and Nunavut have relatively low territorial income tax rates. However, these savings are often more than offset by the significantly higher cost of living in remote communities, including food, housing, fuel, and goods transportation.
Key Credits That Vary by Province
Beyond the basic rates, these provincial credits significantly affect actual tax paid:
| Credit | Notable Variations |
|---|---|
| Basic personal amount | Alberta: $21,003; Quebec: $17,183; Ontario: $11,865 |
| Dividend tax credit | Varies — affects after-tax dividend income significantly |
| Childcare credits | Quebec has additional provincial credits beyond federal |
| Training/tuition credits | Some provinces have more generous provincial credits |
| Senior/disability credits | Provincial supplements vary |
Should You Move Provinces to Save on Tax?
The savings are real — an Ontario resident at $150,000 would save roughly $3,200 per year by living in Alberta instead. But tax is just one factor:
Consider before relocating:
- Housing costs (Alberta, particularly Calgary and Edmonton, remain lower than Ontario/BC)
- Employment opportunities in your field
- Cost of living (groceries, transportation, climate-related costs)
- Healthcare wait times and access
- Family proximity and lifestyle preferences
- Provincial benefits (subsidized childcare in Quebec)
Tax residency rules: Your province of residence is determined on December 31 of the tax year. If you move from Ontario to Alberta and are an Alberta resident on December 31, 2025, you pay Alberta provincial rates for all of 2025 — even if you only moved in November. This creates planning opportunities for high earners who relocate mid-year with a large gain.
Bottom Line
Alberta and the territories offer the lowest combined rates, particularly at higher incomes. Ontario and BC fall in the middle. Quebec, Nova Scotia, and Newfoundland have the highest combined rates for $150,000+ earners. Before making any relocation decision primarily for tax reasons, model the complete financial picture — including housing costs, cost of living, and available provincial programs. Use our Income Tax Calculator to compare your take-home pay across provinces.
Use our calculators to apply these concepts to your own income. Tax information is for general guidance only — consult a CPA for advice specific to your situation.
Tax rates and thresholds sourced from the Canada Revenue Agency (CRA). Last verified for the 2025 tax year.