Understanding taxes in Canada: A province-by-province comparison

Updated: May 2026 — reflects 2026 CRA federal rates and current provincial rates. For advice specific to your situation, consult a qualified tax accountant.

Your province of residence on December 31 each year determines which provincial tax rates apply to your income for that entire year. Moving from Quebec to Alberta, or from Ontario to New Brunswick, can meaningfully change your annual tax bill — sometimes by thousands of dollars. This guide compares income tax rates, sales tax, and overall tax burden across all 10 Canadian provinces for 2026.

Provincial Tax Rates at a Glance: All 10 Provinces (2026)

Province	Provincial Income Tax (lowest–highest rate)	Sales Tax	Combined Top Rate (fed + prov.)
Alberta	10% – 15%	GST 5% only (no PST)	~48%
British Columbia	5.06% – 20.5%	GST 5% + PST 7% = 12%	~53.5%
Ontario	5.05% – 13.16%	HST 13%	~53.53%
Quebec	14% – 25.75%	GST 5% + QST 9.975% = 14.975%	~53.31%
Saskatchewan	10.5% – 14.5%	GST 5% + PST 6% = 11%	~47.5%
Manitoba	10.8% – 17.4%	GST 5% + RST 7% = 12%	~50.4%
Nova Scotia	8.79% – 21%	HST 15%	~54%
New Brunswick	9.40% – 19.5%	HST 15%	~52.5%
Prince Edward Island	9.65% – 18.75%	HST 15%	~51.75%
Newfoundland & Labrador	8.7% – 21.8%	HST 15%	~54.8%

Note: Combined top rates include the federal top rate of 33%. Rates are for 2026 tax year. Always consult a tax professional for advice specific to your situation.

Federal Income Tax Rates (2026)

All Canadians pay federal income tax on top of their provincial rate. Federal rates for 2026:

Taxable Income	Federal Tax Rate
Up to $57,375	15%
$57,375 – $114,750	20.5%
$114,750 – $158,519	26%
$158,519 – $220,000	29%
Over $220,000	33%

The Basic Personal Amount (BPA) for 2026 is $16,129 — no federal tax is paid on income up to this amount.

Which Province Has the Lowest Taxes in Canada?

Alberta has the lowest overall tax burden in Canada by a significant margin:

No provincial sales tax (GST only at 5%)
Provincial income tax starts at 10% — the lowest flat entry rate in Canada
Combined top marginal rate of ~48% — the lowest of any province
No provincial health premium (unlike Ontario and BC)

For a person earning $100,000/year, the difference between living in Alberta vs. Quebec can be $8,000–$12,000 in annual after-tax income. This is a primary driver of interprovincial migration from Quebec and Ontario to Alberta.

Which Province Has the Highest Taxes in Canada?

Newfoundland and Labrador has the highest combined top marginal rate at ~54.8%, followed closely by Nova Scotia (~54%) and Ontario (~53.53%). Quebec has the highest provincial income tax rates (up to 25.75%) but a slightly lower combined rate than NL at the very top bracket.

For most middle-income earners ($60,000–$120,000), Quebec and the Atlantic provinces have the highest effective tax rates in Canada.

Sales Tax by Province (2026)

Sales tax affects every purchase you make — here’s the full breakdown:

Province	Federal (GST)	Provincial	Total
Alberta	5%	None	5%
British Columbia	5%	PST 7%	12%
Saskatchewan	5%	PST 6%	11%
Manitoba	5%	RST 7%	12%
Ontario	—	HST 13% (combined)	13%
Quebec	5%	QST 9.975%	14.975%
New Brunswick	—	HST 15% (combined)	15%
Nova Scotia	—	HST 15% (combined)	15%
PEI	—	HST 15% (combined)	15%
Newfoundland & Labrador	—	HST 15% (combined)	15%

How Moving to a New Province Affects Your Taxes

When you move to a new province, your provincial tax obligations change effective the date you establish residency. Key things to know:

December 31 rule: Your province of residence on December 31 determines which provincial tax return you file for that entire calendar year
Partial year: You only pay provincial tax on income earned while residing in that province — you’ll file a partial-year return for each province if you moved mid-year
Notify the CRA: Update your address with the CRA as soon as you move — this affects your GST/HST credits, Canada Child Benefit, and other federal transfers
Moving expenses: If you moved for work or school and moved at least 40 km closer to your new workplace, your moving costs may be tax deductible.

When you’re ready to make the move, Centennial Moving provides province to province moving services across Canada. Get a free quote within 24 hours.

References:

https://turbotax.intuit.ca/tips/an-overview-of-federal-tax-rates-286
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/charge-collect-which-rate.html
https://www2.gov.bc.ca/gov/content/taxes/sales-taxes/pst/exemptions
https://turbotax.intuit.ca/tax-resources/alberta-income-tax-calculator.jsp
https://turbotax.intuit.ca/tax-resources/ontario-income-tax-calculator.jsp

Frequently Asked Questions

Which province in Canada has the lowest income tax?

Alberta has the lowest provincial income tax rates in Canada, starting at 10% and capping at 15%. Combined with federal rates, Albertans pay a top marginal rate of ~48% — the lowest of any province. Alberta also has no provincial sales tax (only the federal 5% GST), making it the most tax-advantaged province for both income and consumption.

Which province in Canada has the highest income tax?

Newfoundland and Labrador has the highest combined top marginal rate at ~54.8%, followed by Nova Scotia (~54%) and Ontario (~53.53%). Quebec has the highest standalone provincial income tax rate (25.75%) but a slightly lower combined rate than NL at the very top income bracket. Atlantic provinces generally have higher provincial rates than central or western Canada.

How does provincial tax change when you move?

Your province of residence on December 31 each year determines which provincial tax rates apply to your income for that year. If you move mid-year, you’ll file a partial-year return for each province. Always notify the CRA of your address change when you move — it affects your provincial tax assessment, GST/HST credits, and benefit payments.

Is it worth moving to Alberta for the lower taxes?

For higher earners, the tax savings of moving to Alberta can be significant — potentially $5,000–$15,000+ per year compared to Ontario or Quebec, depending on income level. However, Alberta has higher property taxes than many provinces and no public auto insurance (private insurance is often more expensive). The overall calculation depends on your specific income, housing situation, and lifestyle priorities.

Do I pay tax twice if I move provinces mid-year?

No — you only pay provincial tax on income earned while residing in each province. You’ll file a return noting your residency change and each province gets taxed separately on the applicable income. You will not be double-taxed. Consult a tax accountant if you moved provinces mid-year, as the filing can be complex.

What is the sales tax in each Canadian province?

Sales tax ranges from 5% (Alberta — GST only) to 15% (Atlantic provinces — HST). Ontario charges 13% HST, BC charges 12% (GST + PST), Quebec charges 14.975% (GST + QST), and Saskatchewan charges 11% (GST + PST). Basic groceries, most prescription medications, and certain essential items are exempt from sales tax across all provinces.

Understanding taxes in Canada: A province-by-province comparison

Provincial Tax Rates at a Glance: All 10 Provinces (2026)

Federal Income Tax Rates (2026)

Which Province Has the Lowest Taxes in Canada?

Which Province Has the Highest Taxes in Canada?

Sales Tax by Province (2026)

How Moving to a New Province Affects Your Taxes

Frequently Asked Questions

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