Updated Checked by the Tax-Services.ca editorial team How we check
Among the provinces and territories, Nunavut has the lowest income tax on an $80,000 salary, and you keep $62,298.86 of it. Nova Scotia sits at the other end, where the same pay leaves you $56,438.85, a gap of $5,860.01 a year. That’s about $488 a month, or 7.3% of the salary.
A quick note on the search itself. “States” is a US word, and this site covers Canadian tax only, so we haven’t ranked US states. What follows compares the ten provinces and three territories, which is the choice a Canadian actually faces.
Which provinces have the lowest tax on $80,000?
We ran $80,000 of employment income through the same tool for every place, with no RRSP and no other income. The table shows provincial or territorial income tax and what’s left after federal tax and payroll deductions.
| Place | Provincial tax | Pay you keep |
|---|---|---|
| Nunavut | $2,889.02 | $62,298.86 |
| Northwest Territories | $4,021.61 | $61,166.28 |
| British Columbia | $4,030.92 | $61,156.96 |
| Yukon | $4,244.92 | $60,942.96 |
| Alberta | $4,490.38 | $60,697.50 |
| Ontario | $4,885.26 | $60,302.63 |
| Saskatchewan | $6,166.02 | $59,021.87 |
| New Brunswick | $6,942.09 | $58,245.79 |
| Manitoba | $6,959.68 | $58,228.21 |
| Newfoundland and Labrador | $7,331.18 | $57,856.70 |
| Quebec | $8,676.72 | $57,713.44 |
| Prince Edward Island | $7,852.97 | $57,334.91 |
| Nova Scotia | $8,749.03 | $56,438.85 |
Federal tax is $9,242.60 everywhere except Quebec, where it comes out lower and the QPP and Quebec’s own payroll plans replace CPP. That’s why Quebec’s take-home doesn’t follow its provincial column. Use the take-home pay calculator to rerun any row with your own pay. The rates behind each row are published on the CRA’s tax rates and income brackets page.
How reliable is this ranking?
Partly. We confirmed the 2026 figures for Ontario, Alberta, Saskatchewan, Manitoba, the Northwest Territories and Nunavut against official pages. For BC, Newfoundland and Labrador and PEI, official sources give different numbers for a few items, such as the lowest BC rate and the Newfoundland basic amount. The other four (Quebec and Yukon, plus New Brunswick and Nova Scotia) rest on figures we couldn’t fully check. Annoying, but better said.
So treat the middle of the table as a group rather than a podium. A small change to any one official figure could swap the order of places that sit only a few hundred dollars apart, and the Northwest Territories and BC are just $9.32 apart in take-home pay. British Columbia’s spot in particular could move.
Do low income tax provinces cost you elsewhere?
They can. Income tax is one bill among several. Alberta, Yukon, the Northwest Territories and Nunavut charge only the 5% GST, with no provincial sales tax. Ontario charges 13% HST and Nova Scotia 14%, while the three eastern provinces of New Brunswick, Newfoundland and Labrador and PEI charge 15%. British Columbia adds a 7% PST to GST, and Saskatchewan adds 6%.
Rent, food and heating costs vary far more than any of these rates, and we don’t have checked figures for them. A move of a few hundred dollars in tax won’t pay for a dearer flat. Work out your own total with the GST/HST calculator and compare housing costs with the rent affordability calculator.
What does a lower-tax province save you?
Less than the headlines suggest. Say you earn $80,000 and you’re weighing Alberta against Ontario. Alberta’s provincial tax is $4,490.38 and Ontario’s is $4,885.26, so you’d keep $394.87 more a year in Alberta. That’s about $33 a month, or a couple of lunches out. Not nothing, but hardly a reason to pack the car. Nova Scotia against Ontario is a different story, since Ontario leaves you $3,863.78 more.
Moving costs alone would swallow a gap that small, and so would a higher rent or a thinner job market. The big gaps are worth a look, but only after you’ve checked the pay on offer.
Is the lowest-tax place the best place to live?
Not by itself. Nunavut tops the table, and it leaves you $1,996.23 more than Ontario on the same $80,000. But a paycheque only goes as far as the prices around you, and the cost of groceries and housing in the far north isn’t something this table captures. If a job offer from one place pays more, that usually matters more than the tax column.
A fairer test is to ask what the extra money does for you. A gap of $488 a month is real if you’re saving it, and a rounding error if your rent is $500 higher.
Mistakes and limits of this comparison
- It’s employment income only. Dividends, capital gains and self-employment income are taxed differently, and the income tax calculator handles those.
- Only the basic personal amount, the Canada employment amount and the payroll credits are counted. Rent credits and child benefits are left out.
- Rates rise with pay, so the order of places can shift at $40,000 or $150,000. The marginal tax rate calculator shows the rate on your next dollar in each place, from 27.5% in Nunavut to 37.2% in Nova Scotia at $80,000.
- Provincial tax is where you live on 31 December, not where you work.
Where we got these figures
Federal and provincial rates for 2026 come from the Canada Revenue Agency and provincial and territorial finance departments. Sales tax rates come from the CRA, with the provincial pages named on the tax data sheet for each place. We rechecked what we could on 29 September 2026. No level of government runs or endorses this site.
Frequently asked questions
Which province has the lowest income tax?
Nunavut, at $2,889.02 of territorial tax on $80,000. The Northwest Territories, British Columbia, Yukon and Alberta follow closely.
Which province has the highest income tax?
Nova Scotia at $8,749.03 on $80,000, and Quebec at $8,676.72. Quebec's federal tax is lower, so its take-home is not the lowest.
Can I compare US states here?
No. This site covers Canadian tax only, so we have not ranked US states.
Is Alberta cheaper than Ontario for tax?
On $80,000 you keep $394.87 more in Alberta, about $33 a month. Alberta has no provincial sales tax.
Is income tax the whole cost of living somewhere?
No. Sales tax, rent, food and heating vary a lot, and we have no checked figures for those costs.