Moving from Ontario to Alberta: Taxes Compared (2026)

Moving from Ontario to Alberta changes your income tax, removes the provincial part of sales tax, and swaps Ontario’s benefits and health plan for Alberta’s. Whether you pay less income tax in Alberta depends on your income: the two provinces build their tax differently, so the size of the gap changes across the income range. This page works through the numbers for a single employee, then covers the other things that change with the move. It is part of the moving provinces guide.

Income tax in Ontario vs Alberta

The figures below are computed from the 2026 federal and provincial bracket, credit and payroll data for a single person whose only income is employment income, claiming the basic personal amounts and the CPP and EI credits. Income tax is federal plus provincial, including Ontario’s surtax and Health Premium; take-home pay also subtracts CPP and EI, which are the same in both provinces.

At $50,000, income tax in Alberta is $373 less than in Ontario; at $200,000 it is $6,575 less. Spouses, RRSP contributions, other credits and non-employment income all change these figures, and the income tax calculator works out your own.

Why the gap changes with income. Alberta’s first bracket is 8% with a basic personal amount of $22,769, against 5.05% and $12,989 in Ontario, and Ontario also has a tax reduction for lower incomes. The table includes Ontario’s Health Premium, which is collected through the income tax system. At higher incomes Ontario’s surtax takes over. Ontario adds a surtax on top of its basic provincial tax: 20% of Ontario tax above $5,818 plus 36% of Ontario tax above $7,446 (2026 thresholds), which raises Ontario's top marginal rates above the bracket rates. The full bracket tables are on Ontario income tax rates and Alberta income tax rates.

Sales tax

Ontario charges 13% HST, which includes an 8% provincial portion. Alberta has no provincial sales tax, so most purchases carry only the 5% GST. On every $1,000 of taxable spending, that is $80 less tax in Alberta, at any income. See sales tax in Alberta and sales tax in Ontario for what each tax covers.

Health premium, land transfer tax and other costs

• Ontario Health Premium. Ontario residents pay the Ontario Health Premium through the income tax system: from $0 at a taxable income of $20,000 or less to $900 a year above $200,600; it doesn't affect eligibility for OHIP. Alberta has no equivalent, and the premium is already included in the Ontario tax figures above.
• Land transfer tax. Ontario charges a land transfer tax when you buy a home, and Toronto adds its own. Alberta has no land transfer tax; buyers pay land titles registration fees instead. The land transfer tax calculator works out the Ontario amount.
• Car insurance. Both provinces use private insurers, with premiums set by each company; car insurance costs by province compares them.
• Housing. The Toronto Regional Real Estate Board reported an average price of $993,410 across the Greater Toronto Area for August 2026, and the Calgary Real Estate Board $646,198 for the City of Calgary for September 2026. Moving from a smaller Ontario city can narrow or reverse that difference; the Toronto and Calgary market pages and cost of living by province have the details.

Benefits: what replaces what

Each program has its own income test and residence rules, and the new province’s programs start only once you apply or CRA has your new address. Government benefits by province compares more programs.

Health coverage and your licence

OHIP has no waiting period, while Alberta’s plan for movers from another province: coverage begins on the first day of the third month after you establish residency. Alberta gives you 90 days to exchange your Ontario driver’s licence and re-register your vehicle. The moving provinces guide explains how your old plan covers the wait and has the full moving checklist.

Moving back to Ontario

The same comparison runs in reverse: the province you live in on December 31 sets your tax for the year, so a move back to Ontario during the year puts that year’s income under Ontario’s rates. The tax implications of moving provinces page covers the rule, and the moving expense deduction guide covers what you can deduct.

Related reading

• Moving from BC to Alberta: the same comparison from British Columbia.
• Money guide to Alberta and money guide to Ontario.
• The lowest-tax provinces: income tax at three incomes in every province and territory.