Does Alberta have lower taxes than Ontario?

Yes — significantly for most income levels. Alberta has no provincial sales tax (Ontario charges 8% provincial component on most purchases), lower provincial income tax rates above roughly $50,000, and Alberta does not levy estate or gift taxes. On a $100,000 salary, Albertans pay roughly $5,000 less in provincial income tax. Combined with no PST, the total annual tax saving for a $100,000 earner often exceeds $6,000–$8,000 compared to an equivalent Ontario resident.

What is the top marginal tax rate in Ontario vs Alberta?

In 2025, the combined federal+provincial top marginal rate in Ontario is approximately 53.53% (on income above $246,752). Alberta''s combined top rate is 48.00% (on income above $370,220). The Alberta advantage grows at the very high end: a $500,000-earning professional pays roughly $27,000 more in combined tax in Ontario than Alberta per year. The difference is primarily the Ontario surtax and higher top provincial bracket.

How does Alberta''s flat tax work?

Alberta uses a graduated provincial tax system (not a flat tax). Alberta has six brackets ranging from 8% to 15%, the lowest bottom bracket of any province. Ontario has five provincial brackets ranging from 5.05% to 13.16%, plus an Ontario surtax on high incomes. For incomes between $50,000 and $150,000, Alberta''s provincial rate is generally 5–8 percentage points lower than Ontario''s combined provincial rate (including surtax).

Is capital gains tax different in Ontario vs Alberta?

Capital gains tax in Canada is a federal calculation, but the provincial component differs. The capital gains inclusion rate is 50% for everyone (a proposed 2024 increase to 66.67% for gains above $250,000 was cancelled by the federal government in March 2025 and never took effect). At the 50% inclusion rate, combined top marginal rates on capital gains are approximately Ontario ~26.77% vs Alberta ~24.00%. Alberta''s lower provincial rate produces a direct saving on every dollar of gain, not just above a threshold.

Does Ontario or Alberta have higher property taxes?

Property tax rates vary by municipality within each province and cannot be compared in a simple provincial total. Toronto''s property tax rate (~0.67%) is lower than many would expect given home values. Calgary''s rate (~0.65%) is similar. However, because Alberta homes are generally lower-valued than Ontario homes, the dollar amount of property tax is typically lower in Alberta even with similar rates.

Which province is better for high-income earners?

Alberta is clearly better for high-income earners. The combined savings on provincial income tax, no PST, and no surtax typically amount to $10,000–$30,000/year for incomes in the $150,000–$300,000 range. The major consideration for relocating professionals is whether career and lifestyle factors in Alberta justify the move. The tax advantage alone is compelling for remote workers or those with location-flexible careers.

Ontario vs Alberta Tax Comparison (2025/2026)

Short Answer

Alberta has materially lower taxes than Ontario at nearly every income level above $50,000. The primary sources of advantage: no provincial sales tax (saves 8% of spending), lower provincial income tax brackets, and no Ontario surtax. At $150,000 income, the annual combined saving exceeds $10,000.

Provincial Income Tax Rates (2025)

Alberta Provincial Brackets

Taxable income	Provincial rate
$0 – $61,200	8%
$61,200.01 – $154,259	10%
$154,259.01 – $185,111	12%
$185,111.01 – $246,813	13%
$246,813.01 – $370,220	14%
Over $370,220	15%

Ontario Provincial Brackets

Taxable income	Provincial rate
$0 – $51,446	5.05%
$51,447 – $102,894	9.15%
$102,895 – $150,000	11.16%
$150,001 – $220,000	12.16%
Over $220,000	13.16%
+ Ontario Surtax	+20% on Ontario tax > $5,315; +36% on Ontario tax > $6,802

The Ontario surtax is what makes Ontario particularly expensive at higher incomes — it layers an additional 20–56% on top of provincial tax owed.

Head-to-Head Tax Comparison by Income

Taxable income	Federal tax	Ontario provincial	Alberta provincial	Ontario total	Alberta total	Ontario premium
$50,000	~$7,500	~$2,050	~$2,750	~$9,550	~$10,250	Alberta higher here
$75,000	~$13,775	~$4,875	~$4,500	~$18,650	~$18,275	Ontario barely higher
$100,000	~$20,900	~$9,900	~$5,000	~$30,800	~$25,900	$4,900 more
$150,000	~$34,900	~$18,400	~$10,000	~$53,300	~$44,900	$8,400 more
$200,000	~$52,600	~$28,700	~$15,250	~$81,300	~$67,850	$13,450 more

Approximate estimates for single individuals with no credits beyond basic personal amount.

Combined Top Marginal Tax Rates (2025)

Income type	Ontario top rate	Alberta top rate	Alberta saving
Employment/other income	53.53%	48.00%	5.53%
Capital gains (≤$250K gains)	26.77%	24.00%	2.77%
Capital gains (>$250K gains)	35.69%	32.00%	3.69%
Eligible Canadian dividends	39.34%	34.31%	5.03%
Non-eligible dividends	47.74%	42.31%	5.43%

Sales Tax Comparison

Tax	Ontario	Alberta
Federal GST	5%	5%
Provincial sales tax	8% PST (collected as 13% HST)	0%
Total HST/GST rate	13%	5%
On $3,000/month of taxable spending	~$390	~$150
Annual sales tax difference		~$2,880/year

Other Tax Differences

Tax type	Ontario	Alberta
Land transfer tax	0.5%–2.5% of purchase price	None
Toronto (additional) LTT	Up to $4,475 (Toronto-specific)	N/A
Estate/probate fees	~1.5% of estate value over $50,000	~$525 flat maximum
Health premium	$0–$900/year (income-based)	None
Fuel tax (gasoline)	~14.7¢/L provincial	~13.0¢/L provincial

The land transfer tax difference alone on a $700,000 home purchase is approximately $11,000 in Ontario (outside Toronto) vs $0 in Alberta.

Total Annual Tax Burden Estimate (Single, $120,000 Income)

Tax component	Ontario	Alberta
Federal income tax	~$26,400	~$26,400
Provincial income tax	~$14,200	~$7,200
CPP contributions	~$3,867	~$3,867
EI premiums	~$1,049	~$1,049
Annual total	~$45,516	~$38,516
+ Estimated annual sales tax difference	~$2,400	~$0
Effective all-in difference		~$9,400/year

Bottom Line

At incomes above $100,000, Ontario residents pay roughly $7,000–$15,000 more in combined provincial income and sales tax than equivalent Alberta residents. The Ontario surtax amplifies the gap at higher incomes. For location-flexible workers, the tax advantage of Alberta residency is one of the most significant financial optimizations available within Canada — and requires no lifestyle sacrifice beyond living in a different province.

Ontario vs Alberta tax comparison by income level (2026)

Income	Ontario total tax	Alberta total tax	Alberta advantage
$50,000	~$10,900	~$8,800	~$2,100
$75,000	~$18,200	~$14,900	~$3,300
$100,000	~$26,700	~$21,700	~$5,000
$150,000	~$47,100	~$38,500	~$8,600
$200,000	~$68,200	~$56,900	~$11,300

Estimates based on 2026 federal and provincial rates; assumes single individual, employment income, no deductions. Includes Ontario surtax. Does not include sales tax savings.

Sales tax savings: Alberta’’s hidden advantage

Ontario charges 13% HST on most purchases. Alberta charges only 5% GST (no provincial sales tax). On a household that spends $60,000/year on HST-taxable goods and services, the Ontario sales tax burden is approximately $4,800 vs $3,000 in Alberta — a $1,800 annual difference on spending alone.

Combined with income tax savings, the total tax advantage of Alberta over Ontario for a single person earning $100,000 is approximately $6,000–$8,000 per year.

Frequently asked questions

Does Ontario charge more income tax than Alberta on every dollar? Yes, at most income levels. Alberta’’s bottom bracket is 8% on income up to $61,200 (the lowest starting rate of any province), then 10% up to $154,259. Ontario’’s graduated rates range from 5.05% to 13.16% — and Ontario has an additional surtax that applies on provincial tax over approximately $5,315, adding another 20–56% on top of the regular provincial amount for higher incomes.

Is the tax advantage worth moving to Alberta? Financially, for most Canadians earning above $80,000, the answer is yes — provided housing and cost-of-living differences are factored in. Alberta housing is cheaper than Toronto/Vancouver but comparable to medium-sized Ontario cities. The primary non-financial factors are climate, proximity to family, and career opportunities in the relevant field.

→ Back to: Personal Finance Guide