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Canada has no states, so there’s no such thing as a Canadian state with no income tax. Every province and territory taxes your income, and so does the federal government. The difference between them is the rate, and it’s big. On $60,000 of employment income, the tax runs from $6,887 in Nunavut to $10,934 in Nova Scotia at 2026 rates.
If you’re weighing a move, put your own pay through the income tax calculator for each province before you fall in love with a postcode.
Which province taxes income the least?
A $60,000 salary and a $100,000 salary went through the site’s engine for all thirteen jurisdictions. The figures are federal plus provincial income tax only, with no CPP, EI or sales tax. Here are the cheapest and dearest, plus Ontario for reference.
| Where | Tax on $60,000 | Tax on $100,000 |
|---|---|---|
| Nunavut | $6,887 | $17,577 |
| Northwest Territories | $7,722 | $19,026 |
| Ontario | $8,320 | $20,024 |
| Quebec | $9,509 | $23,481 |
| Nova Scotia | $10,934 | $25,363 |
The gap at $100,000 is $7,786 a year between the two ends. That’s real money, roughly $650 a month. But a cold, remote territory brings costs a table can’t show, and a low income tax isn’t a low cost of living. A tank of heating oil in Iqaluit won’t care about your bracket.
The lowest starting rates in our data are Nunavut at 4% and Ontario at 5.05%, with the Northwest Territories next at 5.9%. A low first bracket doesn’t decide the bill, as the table shows. British Columbia’s lowest rate is left out on purpose, because the sources we found disagree on it for 2026.
Picture Sam in Halifax, earning $60,000. The same salary in Nunavut would carry $4,047 less income tax ($10,934 minus $6,887). A few thousand bucks a year, sure, but it would have to cover groceries and flights that cost far more up north.
Is there any way to pay no income tax in Canada?
Only through low income, since credits wipe out tax on the first slice of pay, or by not being a resident. No province offers a zero rate to someone with a regular salary. A low-income worker may owe little or nothing after credits, but still files so benefits keep coming.
Do states with no income tax exist somewhere else?
In the United States, yes, a handful. Wikipedia’s article on state income tax puts it this way:
Nine U.S. states do not levy a broad-based individual income tax.
State income tax (Wikipedia, CC BY-SA), wikipedia.org
It names Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Washington, for example, taxes capital gains above a threshold even though it doesn’t tax wages, which is why lists differ on edge cases. Each state’s revenue department is the place to check the current rules, and check the year, because states change them.
Two points travel well, though. A state with no income tax usually raises money some other way, through sales tax, property tax or fees. And a low state rate says nothing about the federal tax you’d still owe in the US.
What if I move out of Canada?
Moving doesn’t end your Canadian tax by itself. The CRA says that while you’re a Canadian resident you report your world income in Canadian dollars. To become an emigrant for tax you have to leave to live elsewhere and cut your residential ties, such as your home, your dependants and your social connections. After that, you pay Canadian tax only on Canadian-source income.
There’s also a departure tax. The CRA treats you as having sold certain property at fair market value the day you leave, and if the total value passes $25,000 you file Form T1161, the list of properties for people who ceased to be residents. It can create a bill with no sale behind it. Talk to a cross-border accountant before you go, because a mistake here is costly and hard to undo.
Can I compare provinces on more than income tax?
You should. Sales tax is the other big piece. The GST/HST calculator shows how much a purchase adds up to, and the marginal tax rate calculator shows what the next dollar of pay costs you where you live. Housing, car insurance and power bills often swing a budget by more than the income tax gap does, so price those too. For how a refund lands after you file, see our income tax refund estimator guide.
The sources behind this page
The tax figures come from this site’s 2026 federal and provincial data, drawn from CRA and provincial finance pages, and from its own calculators. Departure and residency rules come from the CRA’s pages on leaving Canada. The list of US states is from Wikipedia, and each state’s revenue department is the final word. This is an independent guide, separate from any government body.
Frequently asked questions
Does Canada have states with no income tax?
No. Canada has provinces and territories, and all of them charge income tax on top of the federal tax.
Which Canadian province has the lowest income tax?
In our engine at 2026 rates, Nunavut has the lowest tax on $60,000 and on $100,000 of employment income, and Nova Scotia the highest.
Are there US states with no income tax?
Some, but we couldn't confirm the list on an official page. Check the state revenue department for the year you're moving.
If I move to the US, do I stop paying Canadian tax?
Only once you sever your residential ties and become a non-resident for tax. Until then you report world income to the CRA.
What is the departure tax?
The CRA treats you as having sold certain property at fair market value when you leave. If the total value passes $25,000, you file Form T1161.