Best Province to Retire in Canada (2026): Tax, Housing, Health and Climate

The best province to retire in is the one where your income, health needs and family fit together, and that differs from one retiree to the next. A province with low income tax may have expensive housing; one with cheap housing may be far from family or specialists. This page compares the factors that change with the province: tax on retirement income, housing, seniors’ programs, long-term care and climate. It is part of the moving provinces guide, which covers health coverage and the moving checklist.

What stays the same everywhere

CPP, OAS and the GIS pay the same amounts in every province, so moving doesn’t change those cheques; the OAS and CPP calculators estimate them. Your RRIF minimum withdrawals and the federal tax credits for seniors are also the same across provinces. What changes is provincial tax, provincial top-ups and the cost of living.

Tax on retirement income

Provincial income tax on the same pension and RRIF income can differ by thousands of dollars a year, and the order depends on your income: a province with a low first bracket can charge more than another once income passes the middle brackets. Each province also has its own age amount and pension income credit alongside the federal ones, and Ontario adds its Health Premium. The lowest-tax provinces compares income tax in every province at several incomes, and pension income splitting can lower a couple’s total tax in any province.

Sales tax matters more to retirees who spend most of their income. Combined sales tax runs from 5% in Alberta to 15% in New Brunswick, Newfoundland and Labrador and Prince Edward Island; see sales tax by province.

Housing

Housing can be the biggest difference between provinces, and moving from an expensive market to a cheaper one can free up home equity. Average sale prices reported by local real estate boards:

Averages move with the mix of homes sold in a month, so the housing market pages are the place to compare home types and trends, and cost of living by province covers rents, utilities and everyday costs. Selling a home and buying a cheaper one also brings moving costs, land transfer tax in most provinces and legal fees.

Seniors’ programs and drug coverage

Several provinces top up the GIS for low-income seniors, among them Ontario’s GAINS (Guaranteed Annual Income System), the BC Senior's Supplement and the Alberta Seniors Benefit, with different amounts and residence requirements; government benefits by province compares them, and provincial GIS top-ups covers who qualifies. Drug coverage for seniors also differs: Ontario covers most people 65 and older through the Ontario Drug Benefit, Quebec requires everyone to have drug insurance through RAMQ or a private plan, and BC’s Fair PharmaCare deductible depends on income.

Long-term care costs

What residents pay for a long-term care bed is set by each province:

Ontario and Alberta set a flat rate and BC ties the charge to income, so the cheaper province depends on your income. Each province also has its own waiting lists and residence requirements before you can apply.

Climate

Long-run averages from Environment and Climate Change Canada’s 1991-2020 climate normals:

Of these cities, Victoria has the warmest January average and Winnipeg the coldest. Figures are for each city’s main weather station, usually its airport.

What to compare before you move

Retiring outside Canada raises other questions, from OAS residence rules to non-resident tax; see retiring abroad and the Canadian snowbird guide.

Related reading

• Government benefits by province: seniors’ supplements, drug plans and disability support.
• Tax implications of moving provinces: why the province you live in on December 31 sets your tax for the year.