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Alberta and British Columbia are the lowest tax provinces in Canada, and which one wins depends on your income. On $60,000 of employment income, the calculator’s estimate is $7,906 of income tax in BC and $7,970 in Alberta. At $150,000 it flips, with Alberta at $36,773 and BC at $36,854.
Which province takes the least income tax?
We ran the same worker through every province with the income tax calculator. It’s a single person with only employment income, and the figures are federal plus provincial tax for 2026, rounded to the dollar.
| Province | $40,000 | $60,000 | $100,000 | $150,000 |
|---|---|---|---|---|
| British Columbia | $3,844 | $7,906 | $18,857 | $36,854 |
| Alberta | $3,844 | $7,970 | $19,772 | $36,773 |
| Ontario | $4,363 | $8,320 | $20,024 | $39,911 |
| Saskatchewan | $4,455 | $9,141 | $21,943 | $40,193 |
| Quebec | $4,552 | $9,509 | $23,481 | $45,201 |
| New Brunswick | $4,602 | $9,613 | $23,016 | $42,900 |
| Newfoundland and Labrador | $4,786 | $9,897 | $23,628 | $43,528 |
| Manitoba | $5,002 | $9,888 | $22,786 | $43,434 |
| Prince Edward Island | $5,025 | $10,214 | $24,441 | $45,258 |
| Nova Scotia | $5,442 | $10,934 | $25,363 | $46,114 |
The top two are close enough to call a tie at low incomes. Nova Scotia is the most expensive at every level we tried. The territories can go lower still. Nunavut came in under every province at all four incomes, but you asked about provinces, and few people move there for the tax.
What does that mean in take-home pay?
At $60,000 the estimate leaves you $47,755 in BC, $47,691 in Alberta and $47,340 in Ontario after income tax, CPP and EI. In Nova Scotia you keep $44,726. Between the top and bottom of the table that’s $3,029 a year, or about $252 a month. Put your own salary into the take-home pay calculator to see the gap for your province.
Quebec runs its own payroll system, so its contributions differ. The Quebec column isn’t a perfect match.
Why does Alberta look cheap even when it isn’t first?
Alberta starts with a rate of 8% on the first $61,200 of taxable income, and it has no provincial sales tax. Those two facts give it a name for low tax. The rates then step up. In the middle of our range BC comes out ahead, and at $150,000 Alberta edges back in front. Alberta also has no health premium, a line Ontario adds to the bill.
Does sales tax change the picture?
A little, and it depends how you spend. Here are the combined rates as of the data we checked.
| Province | Sales tax on most goods |
|---|---|
| Alberta | 5% GST only |
| British Columbia | 5% GST plus 7% PST |
| Saskatchewan | 5% GST plus 6% PST |
| Ontario | 13% HST |
| Quebec | 5% GST plus 9.975% QST |
| Nova Scotia | 14% HST |
| New Brunswick, Newfoundland and Labrador, Prince Edward Island | 15% HST |
Many items are taxed differently or not at all, so use these as a rough guide. A family that spends $40,000 a year on taxable items pays about $2,000 in GST in Alberta and about $4,800 in BC on the same basket, before exemptions. Check the tax on a purchase with the GST/HST calculator.
How do you compare your own case?
Don’t trust a table, ours included, until you’ve checked your own numbers. Enter your income, change the province and read the total each time. It takes a minute. A couple with two incomes should run each person separately, since the tax is charged per person.
Think about the marginal side too. The extra dollar you earn is taxed at a higher rate than your average, and that rate differs by province. The marginal tax rate calculator shows it. Ignore its Ontario reading near $200,000, though. It jumps because of the health premium and overstates the rate on the next dollar.
What the comparison leaves out
Property tax, car insurance, fuel, energy bills and housing prices often matter more than income tax. We didn’t compare any of those, and we can’t say which province is cheaper to live in overall. The estimate also counts only the basic personal amounts and the standard payroll credits. If you have dividends, rental income or big deductions, the ranking can change, so test your own case.
Where the numbers come from
Income tax figures come from 2026 federal and provincial rates and payroll data, checked against Canada Revenue Agency pages and provincial sources. Sales tax rates come from the CRA’s GST/HST and PST rate table. This site has no link to any government.
Frequently asked questions
Is Alberta the lowest tax province in Canada?
Not always. At $60,000 our estimate is $7,906 in BC and $7,970 in Alberta, but Alberta is lower at $150,000.
Which province has the highest income tax?
In our 2026 estimates Nova Scotia is highest at $40,000, $60,000, $100,000 and $150,000 of employment income.
Does Alberta have a provincial sales tax?
No. Alberta charges only the 5% GST, while BC adds 7% PST and Ontario charges 13% HST.
Are the territories cheaper than the provinces?
In our estimates Nunavut came in below every province at four income levels. Living costs there are a separate question.
Does the lowest income tax mean the cheapest place to live?
No. Housing, property tax, insurance and energy costs can outweigh the income tax gap, and we didn't compare them.
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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.