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Nunavut has the lowest tax in Canada on a middle income. On $60,000 of taxable income, our engine puts combined federal and territorial income tax at about $7,930 there, against $9,420 in Ontario and $12,200 in Nova Scotia. The gap between best and worst is roughly $4,300 a year at that income, and about $8,100 at $100,000.
Which province or territory taxes income least?
The table ranks all thirteen by total income tax on $60,000, with the $100,000 figure beside it. Each total is federal plus provincial or territorial tax, using the basic personal amount only. It leaves out CPP, EI, other credits and every tax that isn’t on income. The lowest rate column comes from the CRA’s 2026 rates page.
| Jurisdiction | Lowest rate | Tax on $60,000 | Tax on $100,000 |
|---|---|---|---|
| Nunavut | 4% | $7,930 | $18,930 |
| Northwest Territories | 5.9% | $8,850 | $20,490 |
| British Columbia | 5.6% | $9,020 | $20,300 |
| Yukon | 6.4% | $9,020 | $20,820 |
| Alberta | 8% | $9,170 | $21,350 |
| Ontario | 5.05% | $9,420 | $21,520 |
| Saskatchewan | 10.5% | $10,460 | $23,660 |
| New Brunswick | 9.4% | $10,900 | $24,700 |
| Newfoundland and Labrador | 8.7% | $11,160 | $25,300 |
| Quebec | 14% | $11,200 | $25,650 |
| Manitoba | 10.8% | about $11,200 | about $24,500 |
| Prince Edward Island | 9.5% | $11,500 | $26,160 |
| Nova Scotia | 8.79% | $12,200 | $27,060 |
Two notes on the table. The CRA page doesn’t show Quebec’s rate and sends you to Revenu Québec, so that 14% comes from our own data file. Manitoba’s figures are marked “about” because its bracket limit differs slightly between our data and the CRA page.
Does a low starting rate mean low tax?
Not by itself. Ontario has the lowest starting rate of any province at 5.05%, yet it lands sixth here. Alberta’s starting rate is 8% and it comes in ahead of Ontario at both incomes. What counts is the whole ladder of rates and the size of the basic amount, so a single number on a rates page won’t rank anyone.
Nunavut’s first bracket runs to $55,801 at 4%, and its basic amount is $19,659. Those two facts are visible in the numbers. If you’re deciding on a move, the income tax calculator lets you change the province and watch the total.
What happens at higher incomes?
The order stays fairly steady between $60,000 and $100,000, with a few swaps. British Columbia beats the Northwest Territories at $100,000, for example. The marginal tax rate calculator shows the rate on your next dollar, which is the figure to look at before you take a raise or extra shifts. For someone weighing a move, the gap at $100,000 is about twice the gap at $60,000, and that’s the number to set against a change in rent.
One caution. Our engine shows a very high marginal rate for Ontario near $200,000. the Ontario Health Premium goes up 25 cents for each extra dollar in bands of about $600 above $72,000 and above $200,000 (the CRA’s Ontario payroll tables set this out). It’s not a glitch. It only lasts across those short ranges.
Is the lowest tax the cheapest place to live?
No. Income tax is one bill among several. Sales tax, property tax, rent, heating and what you earn locally all change the result. You can price the sales tax side with the GST/HST calculator. We haven’t compared those costs across provinces, so this page ranks income tax only.
Common mistakes with tax comparisons
People compare the top rate and forget that most income never reaches it. Others compare provincial tax alone, when the federal part is the same everywhere but Quebec, where residents get a federal abatement. That reduction is why Quebec’s federal figure is lower in our engine.
Don’t treat any table like this as a filing result. Your return has credits, deductions and CPP that this one skips.
Where the numbers come from
Lowest rates and 2026 brackets are from the Canada Revenue Agency’s rates and brackets page, with provincial thresholds and basic amounts from CRA payroll tables and provincial finance sources. The dollar totals are from our own engine at 2026 rates. Nothing here is advice on where to live.
Frequently asked questions
Which province has the lowest income tax?
On $60,000 of taxable income, Nunavut is lowest in our engine at about $7,930, followed by the Northwest Territories and British Columbia.
Which province has the lowest starting rate?
Nunavut at 4%, according to the CRA's 2026 rates page. Among the provinces, Ontario's 5.05% is the lowest.
Is Quebec's tax higher than other provinces?
On $60,000 our engine gives about $11,200, above most of the rest, with the federal abatement already counted. Revenu Québec publishes Quebec's own rates.
Does this include sales and property tax?
No. It covers income tax only, without CPP, EI or credits beyond the basic personal amount.
Why does Ontario's marginal rate jump near $72,000 and $200,000?
The Ontario Health Premium rises 25 cents per dollar in narrow bands of about $600 at those points.
- How Canadian income tax works: brackets and credits
How federal and provincial Canadian income tax stack up, what marginal and average rates mean, and how credits and deductions change your bill
Information only. This page is general information, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns or offer tax services, and we have no connection with the CRA, Revenu Québec, any government or any company named on this page. Check the figures that matter with an official source or a qualified professional.