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Lowest Tax Provinces in Canada Ranked (2026)

Updated

Provincial Income Tax Rates Overview (2026)

Top Marginal Income Tax Rates (Combined Federal + Provincial)

Rank Province Top Combined Rate Top Provincial Rate PST/HST
1 Nunavut 44.50% 11.50% 0% (GST only)
2 NWT 47.05% 14.05% 0% (GST only)
3 Saskatchewan 47.50% 14.50% 11% (GST+PST)
4 Alberta 48.00% 15% 0% (GST only)
5 Yukon 48.00% 15% 0% (GST only)
6 Manitoba 50.40% 17.40% 12% (GST+PST)
7 New Brunswick 52.50% 19.50% 15% HST
8 PEI 53.00% 20.00% 15% HST
9 Quebec 53.31% 25.75% (prov only) 14.975% (GST+QST)
10 BC 53.50% 20.50% 12% (GST+PST)
11 Ontario 53.53% 20.53% 13% HST
12 Nova Scotia 54.00% 21.00% 15% HST
13 Newfoundland 54.80% 21.80% 15% HST

Ranking by top rate favours Alberta, but mid-income rankings differ. See below.

Tax at $50,000 Income (Single, No Deductions)

Rank Province Total Income Tax Effective Rate
1 Nunavut ~$9,000 18.0%
2 Ontario ~$9,500 19.1%
3 BC ~$9,800 19.6%
4 NWT ~$10,000 19.9%
5 Yukon ~$10,200 20.4%
6 Alberta ~$11,000 22.0%
7 Newfoundland ~$11,700 23.3%
8 New Brunswick ~$11,700 23.4%
9 Saskatchewan ~$12,300 24.5%
10 PEI ~$12,400 24.8%
11 Manitoba ~$12,400 24.9%
12 Nova Scotia ~$12,600 25.1%
13 Quebec ~$12,800 25.7%

Tax at $100,000 Income (Single, No Deductions)

Rank Province Total Income Tax Effective Rate
1 Nunavut ~$22,000 22.0%
2 BC ~$23,300 23.3%
3 NWT ~$23,900 23.9%
4 Ontario ~$23,900 23.9%
5 Yukon ~$24,200 24.2%
6 Alberta ~$25,500 25.5%
7 Saskatchewan ~$28,100 28.1%
8 New Brunswick ~$28,300 28.3%
9 Manitoba ~$28,500 28.5%
10 Newfoundland ~$28,700 28.7%
11 PEI ~$29,900 29.9%
12 Quebec ~$30,200 30.2%
13 Nova Scotia ~$30,400 30.4%

Sales Tax Comparison

Province GST PST/HST Total Sales Tax
Alberta 5% 0% 5%
NWT 5% 0% 5%
Nunavut 5% 0% 5%
Yukon 5% 0% 5%
BC 5% 7% PST 12%
Saskatchewan 5% 6% PST 11%
Manitoba 5% 7% RST 12%
Ontario — 13% HST 13%
Quebec 5% GST 9.975% QST 14.975%
New Brunswick — 15% HST 15%
Nova Scotia — 15% HST 15%
PEI — 15% HST 15%
Newfoundland — 15% HST 15%

Property Tax Comparison (Average Residential Rate)

Province/City Approx. Residential Tax Rate Tax on $500K Home
Vancouver, BC ~0.27% ~$1,350
Toronto, ON ~0.60% ~$3,000
Calgary, AB ~0.64% ~$3,200
Edmonton, AB ~0.72% ~$3,600
Ottawa, ON ~1.07% ~$5,350
Winnipeg, MB ~1.27% ~$6,350
Montreal, QC ~0.86% ~$4,300
Halifax, NS ~1.06% ~$5,300
Saint John, NB ~1.78% ~$8,900
Fredericton, NB ~1.56% ~$7,800

Property tax rates are set municipally and vary widely within provinces. Low assessment values can offset high rates (e.g., Vancouver has low rates but very high property values).

Overall Tax Burden Ranking

Rank Province Income Tax Sales Tax Property Tax Health Premiums Overall
1 Alberta Low Lowest (5%) Moderate None Lowest
2 Saskatchewan Moderate Moderate (11%) Moderate None Low
3 Ontario Moderate Moderate (13%) Moderate None (ended 2019) Moderate
4 BC Moderate Moderate (12%) Low rate, high values MSP eliminated Moderate
5 Manitoba High Moderate (12%) High None Moderate-High
6 New Brunswick High Highest (15%) High None High
7 PEI High Highest (15%) Moderate None High
8 Nova Scotia Highest Highest (15%) High None Highest (Atlantic)
9 Newfoundland Highest Highest (15%) Moderate None High
10 Quebec Highest Highest (14.975%) Moderate None Highest overall

Territories (NWT, Nunavut, Yukon) have low tax rates but very high cost of living, making direct comparisons less useful.

Tax Savings: Moving Provinces Example

$100,000 income, single, no deductions, homeowner ($500K home):

Category Alberta Ontario Quebec Nova Scotia
Income tax $25,500 $23,900 $30,200 $30,400
Sales tax rate 5% 13% 14.975% 15%
Est. annual sales tax paid $2,500 $5,200 $6,000 $6,000
Property tax ($500K home) $3,400 $3,000 $4,300 $5,300
Total estimated tax $31,400 $32,100 $40,500 $41,700
Savings vs Quebec $9,100 $8,400 — -$1,200