Updated Checked by the Tax-Services.ca editorial team How we check
There’s no verified US-style list of states with no income tax and no sales tax on this site, because it covers Canadian tax and we haven’t checked US state sources. What we can show is the Canadian version of the question. Every province and territory taxes income, and no Canadian jurisdiction has zero sales tax, but Alberta, Yukon, the Northwest Territories and Nunavut charge only the 5% GST.
Is there a Canadian province with no income tax and no sales tax?
No. Each province and territory has its own income tax brackets in our 2026 data, stacked on top of federal tax. And the federal GST applies everywhere. The closest thing to a low-tax combination is Alberta, which has no provincial sales tax. It still has income tax, and the GST.
If you came here with a US-style list in mind, be careful before acting on anything you read. Lists like that tend to skip local taxes, property tax, fees and what a US move does to your Canadian tax status. None of that was checked here, so there’s no guessing.
How do sales taxes compare across Canada?
| Where | What applies | Combined rate |
|---|---|---|
| Alberta, Yukon, Northwest Territories, Nunavut | 5% GST, no provincial or territorial sales tax | 5% |
| Saskatchewan | 5% GST plus 6% PST | 11% |
| British Columbia | 5% GST plus 7% PST | 12% |
| Manitoba | 5% GST plus 7% RST | 12% |
| Ontario | 13% HST | 13% |
| Nova Scotia | 14% HST, cut from 15% on 1 April 2025 | 14% |
| Quebec | 5% GST plus 9.975% QST | 14.975% |
| New Brunswick, Newfoundland and Labrador, Prince Edward Island | 15% HST | 15% |
The CRA publishes the GST/HST rates by province. Manitoba’s 7% comes from the province’s own page, and the 2026 budget wasn’t checked, so treat it as the rate on that page, not a promise. To see the tax on a specific purchase, use the GST and HST calculator, or the GST and PST calculator, which taxes everything at 12% in BC, so it overstates restaurant food.
Here’s what the table means at the till. A $500 purchase before tax carries $25 of tax in Alberta, $55 in Saskatchewan, $60 in BC, $65 in Ontario and about $74.88 in Quebec. Same sofa, a gap of nearly fifty bucks from one end of the table to the other.
What do income tax and sales tax cost together?
Sales tax is half the picture. Here’s a quick comparison using our own engine. A worker earning $80,000 of employment income pays about $13,733 of combined federal and provincial income tax in Alberta and about $14,128 in Ontario. That’s a gap of roughly $395 a year.
Now add spending. On $2,000 of purchases before tax, Alberta adds $100 of GST, and Ontario adds $260 of HST. The gap is $160. If you spend $2,000 a month on taxable things, the sales tax gap would pass $1,900 a year. If you spend closer to $2,000 a year, it’s small.
So which matters more? That depends on how much of your income goes to taxable goods. Run your own income through the income tax calculator, then compare a province you’re considering with where you live now. The marginal tax rate calculator shows the rate on your next dollar.
A rough rule: the more of your paycheque goes to groceries, rent and other things that aren’t taxed the same way, the less sales tax matters. Someone who buys a lot of taxable gear, such as a gadget-loving couple in Edmonton or Toronto, feels the gap more. This is a ballpark, not a forecast, since what’s taxable differs by item and province.
What gets left out of these comparisons?
A lot. Property tax, land transfer tax, fuel tax, vehicle costs, insurance, and what housing costs. The engine’s income figures also leave out benefits and most credits. And two of our own quirks are worth knowing. The Ontario marginal rate jumps near $72,000 and $200,000, because the Ontario Health Premium rises in narrow bands there, so a one-dollar raise can look expensive on a chart. The tax credits calculator is federal only, so it leaves out provincial credits.
What if you’re thinking of leaving Canada?
This page can’t answer that. The rules on when you stop being a Canadian tax resident are on CRA pages, and they weren’t verified for this page. Read them before you sign a lease, and remember that a state with no income tax can still charge property tax, sales tax or fees that bring the total back up.
Where the numbers come from
Sales tax rates come from the CRA‘s table of GST/HST rates by province, plus the provincial pages for BC, Saskatchewan, Manitoba and Revenu Québec. Income tax figures are our calculator’s output, using 2026 federal and provincial data loaded for each province and territory. No US state source was used. No level of government runs or endorses this site.
Frequently asked questions
Is there a Canadian province with neither income tax nor sales tax?
No. Every province and territory has income tax, and the 5% GST applies everywhere.
Which Canadian places have only the GST?
Alberta, Yukon, the Northwest Territories and Nunavut have no provincial or territorial sales tax, so only the 5% GST applies.
How much less tax would I pay in Alberta than Ontario?
On $80,000 of employment income our engine shows about $13,733 in Alberta and $14,128 in Ontario, a gap of roughly $395 before sales tax.
Can you list US states with neither tax?
We haven't checked US sources, so we don't give a list. Check each state's own revenue department.
Does moving change my Canadian tax?
Residency rules decide that, and they sit on CRA pages we didn't verify here. Read them before you move.