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Best Province for Taxes in Canada 2026 | Tax Comparison

Updated

Provincial Tax Comparison Overview

Top Marginal Tax Rates 2026

Province Top Combined Rate
Nova Scotia 54.00%
Ontario 53.53%
BC 53.50%
Manitoba 50.40%
Quebec 53.31%
New Brunswick 52.50%
PEI 51.37%
Saskatchewan 47.50%
Newfoundland 54.80%
Alberta 48.00%

Lowest Rate by Income Level

Income Lowest Tax Province
$50,000 Saskatchewan
$100,000 Alberta
$150,000 Alberta
$250,000+ Alberta

Tax at Different Income Levels

Tax Payable Comparison

Income Alberta Ontario BC Quebec
$50,000 $9,200 $7,900 $7,500 $10,200
$75,000 $16,200 $14,900 $14,500 $18,100
$100,000 $23,900 $24,900 $24,000 $27,400
$150,000 $41,400 $45,400 $43,000 $47,800
$200,000 $60,700 $70,100 $66,200 $73,500
$300,000 $100,700 $122,400 $115,600 $126,500

Approximate, before credits.

Sales Tax Impact

Provincial Sales Tax Rates

Province PST Total with GST
Alberta 0% 5%
Saskatchewan 6% 11%
Manitoba 7% 12%
BC 7% 12%
Ontario 8% 13%
Quebec 9.975% 14.975%
Nova Scotia 10% 15%
New Brunswick 10% 15%
PEI 10% 15%
Newfoundland 10% 15%

Annual PST Cost Example

Annual Spending Alberta Ontario Quebec
$30,000 $0 $2,400 $2,993
$50,000 $0 $4,000 $4,988
$75,000 $0 $6,000 $7,481

Complete Tax Picture

Best for High Earners ($200K+)

Rank Province Why
1 Alberta Lowest top rate + no PST
2 Saskatchewan Low top rate
3 BC Middle ground

Best for Middle Income ($75-100K)

Rank Province Why
1 Alberta Flat 10% + no PST
2 BC Reasonable rates
3 Ontario Many credits available

Best for Lower Income ($40-60K)

Rank Province Why
1 Quebec Credits + social programs
2 BC Climate credit + low rates
3 Ontario Trillium benefit

Beyond Income Tax

Other Tax Considerations

Cost Varies By Province
Property tax Municipal rates differ
Vehicle insurance Drastically different
Gas tax Provincial variations
Carbon tax Different rebates
Sin taxes Alcohol, tobacco

Property Tax Examples

City Rate per $100K Assessment
Vancouver ~$2,500
Calgary ~$6,500
Toronto ~$6,000
Montreal ~$8,500

Car Insurance

Province Average Annual
Ontario ~$1,600
BC (ICBC) ~$1,900
Alberta ~$1,400
Quebec ~$700

Social Programs and Benefits

Quebec Advantages

Program Benefit
$9/day childcare Saves $10,000+/year
Lower tuition ~$3,000/year less
Parental leave More generous
Drug insurance Public option

Ontario Credits

Credit Value
Trillium Benefit Up to $1,500
Child Benefit Income-tested
Senior grants Property tax help

BC Benefits

Benefit Value
Climate Action Credit $500+/year
Family Benefit Per child
Homeowner Grant ~$570

Best Province by Situation

Young Professional ($80K, Single)

Best Province Why
1 Alberta Lowest overall tax
2 BC Good balance
3 Ontario If career opportunity

Family with Kids ($120K, 2 children)

Best Province Why
1 Quebec Childcare savings huge
2 Alberta Still saves on tax
3 BC Family benefits

Retiree ($60K pension)

Best Province Why
1 BC Climate, low tax
2 Alberta No PST on spending
3 Ontario Healthcare access

High Earner ($300K+)

Best Province Why
1 Alberta Save $25K+ in tax
2 Saskatchewan Second lowest
3 Anywhere else Much higher tax

Cost of Living Considerations

Housing Costs Matter

City Average Home Price
Toronto ~$1,100,000
Vancouver ~$1,200,000
Calgary ~$550,000
Edmonton ~$400,000
Montreal ~$550,000

Effective Savings

Moving From Toronto to Calgary
Tax savings ($150K income) ~$4,000
PST savings ~$4,000
Housing savings ~$1,500/month
Total annual ~$26,000+

Making the Decision

Consider All Factors

Factor Weight It
Career opportunities Important
Housing costs Major impact
Family needs Childcare, schools
Lifestyle Climate, culture
Tax savings Part of picture

When Alberta Makes Sense

Situation Benefit
High income (>$150K) Significant savings
Low spending needs Less PST impact
Remote work Location flexible
No kids/grown kids Childcare not factor

When Alberta Doesn’t Win

Situation Better Option
Young children Quebec (childcare)
Lower income Credits elsewhere
Job-specific location Stay where work is

Tax Planning Strategies

If Moving Provinces

Tip Details
Move before Dec 31 Get full year benefit
Time income Defer to lower-tax year
Sell assets Before or after move

Maximize Credits

No Matter Where Do This
File tax return Get all credits
Claim everything Don’t leave money
RRSP contributions Province-agnostic

Summary Rankings

Overall Best for Taxes

Rank Province Best For
1 Alberta Most situations
2 Saskatchewan Second lowest rates
3 BC Balance of tax/life
4 Ontario Career opportunities
5 Quebec Families with kids

Overall Highest Taxes

Rank Province Note
1 Nova Scotia Highest top rate
2 Newfoundland High rates throughout
3 PEI Small province, higher rates