Lowest Tax Provinces in Canada: Income Tax, Take-Home Pay and Sales Tax Compared

This page compares the provinces and territories on two measures that apply to everyone, income tax (federal plus provincial or territorial, for a single employee) and sales tax rates, and shows take-home pay alongside. A summary after the income tax tables names the jurisdiction with the lowest income tax at each of the three incomes, among all 13 and among the ten provinces. It doesn’t rank them on property tax, insurance or housing, which depend on the city and the household; the cost of living by province covers those. It is part of the income tax hub; for how brackets and the basic personal amount work, see tax brackets in Canada.

How the figures are worked out

Every tax and take-home figure on this page is computed from the federal and provincial bracket, credit and payroll data files for 2026: a single person whose only income is employment income, claiming the basic personal amounts, the CPP and EI credits and the Canada employment amount. “Income tax” is federal plus provincial or territorial income tax, including Ontario’s surtax and Health Premium and Quebec’s federal abatement. “Take-home pay” is income minus that tax and CPP or QPP, EI and (in Quebec) QPIP. Refundable credits and benefits, such as the Canada Groceries and Essentials Benefit (formerly the GST/HST credit) or provincial benefits, are not included.

Income tax at $50,000

At $50,000, income tax in Alberta is $373 less than in Ontario and $33 more than in British Columbia. Alberta’s first bracket rate is 8% and its basic personal amount $22,769, against 5.05% and $12,989 in Ontario and 5.6% and $13,216 in British Columbia. British Columbia, New Brunswick and Ontario also have tax reductions for lower incomes, which the figures include.

“Above the lowest” is each row’s income tax minus the lowest in the table, so the lowest shows $0.

Income tax at $100,000

At $100,000, income tax in Alberta is $252 less than in Ontario and $915 more than in British Columbia, and Quebec’s is $4,170 more than Ontario’s.

Income tax at $200,000

At $200,000, income tax in Alberta is $6,575 less than in Ontario and $1,579 less than in British Columbia. Ontario’s figure includes its surtax: 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.

Lowest income tax at each income

The jurisdiction with the lowest income tax in each table above (the row showing $0 above the lowest), and the lowest among the ten provinces alone:

Sales tax by province

Sales tax rates also differ between provinces. Only the 5% GST applies in Alberta, Northwest Territories, Nunavut and Yukon; the provinces that harmonized with the GST charge one HST rate (New Brunswick (15%), Newfoundland and Labrador (15%), Nova Scotia (14%), Ontario (13%) and Prince Edward Island (15%)), and the rest add a separate provincial tax to the GST (British Columbia (12%), Manitoba (12%), Quebec (14.975%) and Saskatchewan (11%)).

What items each tax covers differs by province, and some purchases carry no GST/HST at all (basic groceries are zero-rated and long-term residential rent is exempt); the sales tax hub has the rules for each province.

Income tax and sales tax together

The combined effect depends on how much you spend on taxable purchases, so this example has to assume a figure.

The example overstates sales tax for anyone whose spending includes zero-rated or exempt items such as basic groceries and rent.

What else changes when you move

• Which province’s rate applies. The CRA uses your province or territory of residence on December 31 to set the provincial rate for the whole year.
• Benefits and credits. Provincial benefits paid through the tax system differ; see which province has the best government benefits.
• Payroll deductions. Quebec employees contribute to the QPP instead of the CPP, and pay QPIP premiums plus EI at a reduced rate, which the take-home column above includes; see changing provinces and your EI or CPP.
• Moving costs and timing. See the tax side of moving between provinces and the Ontario vs Alberta comparison.

Related guides

• Income tax hub
• Tax brackets in Canada: federal brackets, marginal rates and the basic personal amount in every jurisdiction
• Alberta income tax, British Columbia income tax, Ontario income tax and Quebec income tax
• Canada vs USA tax comparison
• Sales tax calculator