Updated Checked by the Tax-Services.ca editorial team How we check
Among Canadian provinces and territories, Nunavut has the lowest income tax at both $45,000 and $150,000 of pay. We ran eight of them through our calculator. On $150,000 of employment income, Nunavut costs $33,822.58 in total income tax and Nova Scotia costs $46,113.91. Canada has no states, so the closest answer is a list of provinces and territories with the lowest income tax.
Which provinces have the lowest income tax?
Here’s total income tax (federal plus provincial) on employment income, from the income tax calculator. CPP and EI aren’t in these figures.
| Province or territory | Tax on $45,000 | Tax on $150,000 |
|---|---|---|
| Nunavut | $4,223.73 | $33,822.58 |
| Northwest Territories | $4,730.55 | $36,869.65 |
| Alberta | $4,860.46 | $36,772.52 |
| British Columbia | $4,925.68 | $36,853.92 |
| Yukon | $4,960.29 | $36,433.79 |
| Ontario | $5,243.01 | $39,910.59 |
| Saskatchewan | $5,586.90 | $40,193.15 |
| Nova Scotia | $6,800.49 | $46,113.91 |
The order isn’t fixed. Alberta beats British Columbia and Yukon at $45,000, but Yukon is ahead of both at $150,000. Only Nunavut leads and Nova Scotia trails at both incomes. We left out the other provinces and Quebec, so this isn’t a full ranking.
How big is the gap between the cheapest and the dearest?
On $45,000, Nunavut saves you $2,576.76 a year against Nova Scotia, which is about $215 a month. On $150,000 it’s $12,291.33, or roughly $1,024 a month. That’s real money. But look at the middle of the pack: Alberta, British Columbia and Yukon sit within about $420 of each other at $150,000, and within about $100 at $45,000.
Would you move for a $100 difference? Nobody should. And if two places are that close, other costs decide it. Even Ontario, the biggest province, is only $382.55 dearer than Alberta at $45,000, and $3,138.07 dearer at $150,000, so a Toronto worker earning a middling wage would hardly notice the swap on paper.
Is the lowest tax province the best place for your pay?
Not by tax alone. Income tax is one bill among several. Rent, food, sales tax, property tax and what your job pays there can outweigh a few thousand dollars, and we haven’t compared any of those. A paycheque in Iqaluit has to cover very different grocery prices from one in Halifax. If a move is on the table, put the offer or your expected pay into the tool, choose each province in turn and look at the line “Left after tax and contributions”.
Two more checks. First, the calculator uses employment income only, so dividends, gains and self-employment income can change the order. The marginal tax rate calculator shows what each kind of extra income costs where you live. Second, ask what a raise is worth in each place. A $5,000 raise isn’t taxed at your average rate but at your top slice, and the take-home pay calculator puts a figure on it.
What if you want to move but keep your Canadian job?
Within Canada, the province you move to sets the second layer of tax. Leaving Canada is different. The CRA says that if you keep significant residential ties, such as a home in Canada or a spouse and dependants living here, you’re generally treated as a factual resident and taxed on worldwide income. So low tax abroad doesn’t help until those ties are cut. The CRA’s page on determining your residency status covers the test in full and points to form NR73 if you want the CRA’s opinion when leaving.
Does the province you live in on 31 December matter?
Yes. On the return, the CRA asks for the province or territory where you lived, or were considered a factual resident, on 31 December of the tax year. Its page on your province or territory of residence says so. In practice that one date sets the provincial rates for the year, so a late-December move can change the bill. It is a good reason to price a move properly before you pick a moving day.
What could throw these numbers off?
Our tool covers the basic personal amount, the Canada employment amount and the CPP and EI credits. It leaves out benefits, refundable credits and provincial credits beyond the basics. The Quebec figures rest on some sources we couldn’t confirm on Revenu Québec’s own site, so we haven’t ranked Quebec here. The tool’s figures for Manitoba use rates that differ from a CRA page in some thresholds, another reason we left it out.
Take the table as a comparison for a single employee. For your own bill, use your pay and your credits. The tax refund calculator handles the withholding side.
What this page is based on
The federal and provincial rates and brackets come from the Canada Revenue Agency‘s 2026 rates page and payroll tables, and provincial finance sites for the personal amounts. The totals come from our own calculator, rechecked on 29 September 2026. We aren’t a government service and we don’t speak for one.
Frequently asked questions
Which province has the lowest income tax?
Nunavut, at both $45,000 and $150,000 of employment income in our calculator.
Which of the eight we tested costs the most?
Nova Scotia. On $150,000 the total is $46,113.91 against $33,822.58 in Nunavut.
Does the cheapest province stay the same at every income?
Not in the middle. Alberta, British Columbia and Yukon swap places as income rises.
Do CPP and EI change the ranking?
They're not in our figures. They're separate deductions from pay.
Does moving abroad lower my Canadian tax?
Only once you cut your significant residential ties. Until then the CRA treats you as a factual resident.