Best Province for Taxes in Canada 2026 | Tax Comparison
Updated
Alberta is a strong choice for high earners — no provincial sales tax, a six-bracket system starting at 8% on the first $61,200, and a top combined rate of 48% that saves someone earning $300,000 roughly $12,000 per year compared to Ontario (BC is actually slightly cheaper than Alberta up to about $150,000 of income). But the “best” province depends heavily on your income level and family situation. Quebec’s $9/day childcare saves families $10,000+ annually, easily offsetting its higher tax rates. BC’s climate credits and lack of health premiums help moderate earners. Before you move for tax savings, factor in housing costs, career opportunities, and the full picture beyond your T1 return. If Alberta is on your shortlist, compare the actual brackets in the Alberta income tax rates guide.
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
53.00%
Saskatchewan
47.50%
Newfoundland
54.80%
Alberta
48.00%
Lowest Rate by Income Level
Income
Lowest Tax Province
$50,000
Ontario
$100,000
BC
$150,000
BC
$250,000+
Alberta
Tax at Different Income Levels
Tax Payable Comparison
Income
Alberta
Ontario
BC
Quebec
$50,000
$11,000
$9,500
$9,800
$12,800
$75,000
$17,800
$16,200
$16,300
$21,200
$100,000
$25,500
$23,900
$23,300
$30,200
$150,000
$42,500
$44,400
$41,500
$52,200
$200,000
$62,200
$67,400
$62,600
$76,400
$300,000
$106,300
$118,300
$111,300
$127,700
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
BC
Cheaper than Saskatchewan in dollar terms up to ~$300K
3
Saskatchewan
Low top rate, but low brackets are narrow
Best for Middle Income ($75-100K)
Rank
Province
Why
1
Ontario
Lowest income tax at this range
2
BC
Close second, low starting brackets
3
Alberta
No PST offsets a slightly higher income tax bill
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)
~$1,800
PST savings
~$4,000
Housing savings
~$1,500/month
Total annual
~$23,800+
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
The Bottom Line
Alberta pulls ahead in raw dollar terms mainly at higher incomes — BC is actually cheaper than Alberta up to roughly $150,000 thanks to its low starting brackets, and Alberta only takes a clear lead around $200,000+. By $300,000, an Alberta earner pays about $12,000 less than in Ontario. But taxes are only one piece of the cost-of-living equation. Toronto-to-Calgary movers save on income tax, PST, and housing, potentially adding up to $23,800+ annually. Quebec families with young children may actually come out ahead despite higher rates, thanks to subsidized childcare worth $10,000–15,000 per child. Use our salary calculator to model your specific situation before making any decisions.