Updated Checked by the Tax-Services.ca editorial team How we check
Canada has no states, so there’s no state tax here. What you’re looking for is provincial or territorial income tax, which the CRA says applies “in addition to” your federal tax. On $80,000 of taxable income the provincial part runs from about $4,954 in Alberta to $7,579 in Manitoba, depending on where you live.
Is there a state tax in Canada?
Not by that name. The country has ten provinces and three territories, and each one sets its own income tax rates and brackets. Your bill has two layers. One goes to Ottawa and the other to your province or territory.
For most people that’s a single return. You file with the Canada Revenue Agency, and it collects for the federal government and for most provinces and territories. Quebec is the exception. Residents there file a separate Quebec return with Revenu Québec, and Quebec’s own government sets its own rules.
What do provincial rates look like in 2026?
They vary a lot. Some provinces start low and climb steeply. Others start higher and stay flatter. This table shows the lowest and highest rate in five places, taken from the CRA’s payroll tables and the provinces’ own 2026 pages.
| Province | Lowest rate | Highest rate | Basic personal amount |
|---|---|---|---|
| Ontario | 5.05% | 13.16% | $12,989 |
| Alberta | 8% | 15% | $22,769 |
| Saskatchewan | 10.5% | 14.5% | $20,381 |
| Manitoba | 10.8% | 17.4% | up to $15,780 |
| Quebec | 14% | 25.75% | $18,952 |
Ontario adds two extras on top of the rates: a surtax when your Ontario tax is high enough, and the Ontario Health Premium. Both make the real rate at higher incomes steeper than the table suggests. We left British Columbia out of the table because its lowest 2026 rate differs between the sources we read, and we’d rather not guess. Check the BC government’s tax rates page.
What does $80,000 cost you in provincial tax?
The gap shows up fast. We ran $80,000 of taxable income through the engine for four provinces, with no other credits except the basic personal amount.
Ontario comes out at about $5,205 in provincial tax, Alberta at $4,954, Saskatchewan at $6,769 and Manitoba at $7,579. Federal tax on that income is about $10,293 for all four. So the total runs from roughly $15,247 in Alberta to $17,872 in Manitoba. Same pay, a difference of over $2,600.
Does that mean you should move to Alberta? No. Housing, insurance, sales tax and pay all differ too. It only says what the income tax line alone looks like. Use the income tax calculator to switch provinces and see the total for your own income.
Which province do you pay tax to?
The one you lived in on 31 December. That’s the general rule, so if you moved in July you file for your new province for the whole year. The CRA’s page on your province of residence also covers people with ties to two provinces, so read it if that’s you.
Sales tax is a separate matter. Provinces charge their own PST or HST, and the rate depends on where you buy. The HST reverse calculator backs the tax out of a price, and the GST and PST calculator handles provinces that charge them separately. Careful with the BC setting though. It applies 12% to everything, which overstates the tax on some items.
Mistakes people make with provincial tax
The common one is reading a rate table and assuming your whole income sits at the top rate. It doesn’t. Each rate only covers its own slice.
Another is comparing provinces by income tax alone. A low bracket rate can come with a health charge, a premium or higher costs elsewhere. Quebec residents should also remember the federal abatement, which reduces their federal tax, so the federal and provincial figures can’t be lifted from the table above and added.
Your marginal tax rate is the number worth knowing before you make an RRSP or side income decision, since it adds both layers together.
Where the numbers come from
The federal rules and the statement that provincial tax applies in addition come from the CRA’s 2026 tax rates page. Provincial brackets and basic personal amounts come from the CRA’s January 2026 payroll deduction tables for each province, the provincial governments’ own 2026 pages, and Finances Québec for Quebec. We checked them on 29 September 2026. Provincial figures can change mid-year, so confirm on your province’s site before you file.
Frequently asked questions
Does Canada have state income tax?
No. Canada has provinces and territories instead of states, and each one charges its own income tax on top of federal tax.
Do I file a separate provincial return?
Only in Quebec. Everywhere else you file one return with the CRA, which collects for most provinces and territories.
Which province has the lowest income tax?
It depends on your income. A low starting rate doesn't mean low tax once you count higher brackets, surtaxes and credits, so run your own figures.
Which province do I pay tax to if I moved?
Generally the one you lived in on 31 December. The CRA's page on your province of residence covers people with ties to more than one province.
Are provincial rates the same for everyone?
No. Rates rise with income in every province, and each province sets its own brackets and credits.
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.