Updated Checked by the Tax-Services.ca editorial team How we check
Canada has no states, so there are none without income tax. Every province and territory taxes income, and so does Ottawa. If you’re really asking where in Canada you’d pay the least, the honest answer is Nunavut, which takes $12,131.62 in total income tax on an $80,000 salary, against $17,991.63 in Nova Scotia.
Why nobody in Canada escapes provincial income tax
Your federal return covers Ottawa’s share and, outside Quebec, your province’s share too. Quebec is the odd one out, since Revenu Québec runs its own return. We can’t speak for how another country’s states set their taxes, and this page doesn’t try to. What it does is show what the gap between Canadian provinces looks like in dollars.
The gap is real, but it’s narrower than people expect. Federal tax on $80,000 is $9,242.60 in every province except Quebec. Only the provincial slice moves.
What $80,000 of salary costs in each province
We ran the same salary through our income tax calculator for a spread of provinces. The figures are federal plus provincial tax, and they leave out CPP, QPP and EI.
| Where you live | Provincial tax | Total income tax | Share of $80,000 |
|---|---|---|---|
| Nunavut | $2,889.02 | $12,131.62 | 15.2% |
| Northwest Territories | $4,021.61 | $13,264.20 | 16.6% |
| British Columbia | $4,030.92 | $13,273.52 | 16.6% |
| Alberta | $4,490.38 | $13,732.98 | 17.2% |
| Ontario | $4,885.26 | $14,127.85 | 17.7% |
| Quebec | $8,676.72 | $16,351.56 | 20.4% |
| Nova Scotia | $8,749.03 | $17,991.63 | 22.5% |
What is the gap worth per month?
Spread over twelve months, the $5,860.01 between Nunavut and Nova Scotia is about $488 a month. Between Ontario and Nova Scotia the difference is $3,863.78 a year, about $322 a month. Not nothing, but not a few bucks either. Picture Lena in Halifax with the same $80,000 salary as her cousin in Toronto: she pays more income tax, but her HST and housing costs differ too, so the whole picture needs more than this table.
Is the cheapest province really the best place to live?
Not by itself. The spread between Nunavut and Nova Scotia is $5,860.01 a year on this salary, and that sounds huge until rent, groceries and travel costs come into it. Those aren’t in any calculator here, so we won’t pretend to rank places on them.
Alberta shows another trap. Its income tax is lower than Ontario’s, and it has no provincial sales tax, only the 5% GST. Someone who spends most of what they earn feels that. Someone who saves half of it feels the income tax difference more. The GST and HST calculator lets you compare a purchase price across provinces.
What changes near the top and the bottom of the range
Brackets matter more than headline rates. British Columbia’s first bracket runs at 5.60% up to $50,363, according to the province’s own 2026 rate page, while Alberta charges 8% up to $61,200 in the data we checked. But BC’s top rate is 20.50% above $265,545, well above Alberta’s 15% top rate. So a low-earner does better in BC and a high earner does better in Alberta, at least on income tax alone.
Your marginal tax rate is what tells you how the next raise or side job gets taxed, and it can differ a lot from your average rate. Wondering what a raise really keeps? Run it there, and treat the answer near $200,000 in Ontario with care, since the health premium steps make any single rate a rough guide.
Does it matter that Alberta has no provincial sales tax?
For some people, yes. Alberta charges only the 5% GST, while Ontario’s HST is 13%, so a $1,000 purchase carries $50 of tax in Alberta and $130 in Ontario. If your budget is mostly spending, that gap can eat into an income tax advantage. If you save a big share of your pay, it matters less.
Mistakes when comparing provinces
Comparing only the first bracket rate is the classic one. Another is forgetting that the province where you live on 31 December is the one that taxes your whole year’s income, whatever you did in January. And a move doesn’t pay off if it cuts your pay, so run your real take-home through the take-home pay calculator before deciding.
Also, the Quebec line above isn’t like for like. Quebec residents get a federal abatement, which is why the federal share is smaller. The calculator uses 16.5%, the abatement in the CRA’s guide for line 44000. Quebec’s pension plan premiums also differ from the CPP.
What this page is based on
Federal and provincial brackets are the 2026 figures from the Canada Revenue Agency and the provincial finance ministries, checked in September 2026. The British Columbia rates were read from the province’s own tax page. The comparison is our calculator’s estimate for a single employee with no other income, no deductions and only the basic credits. It’s a comparison, not a personal quote. A few provincial credits for 2026, such as some low-income reductions, aren’t confirmed, so treat the lower-income figures as approximate.
Frequently asked questions
Are there any Canadian provinces with no income tax?
No. Every province and territory charges its own income tax on top of the federal tax. Quebec collects its own through a separate return.
Which province has the lowest income tax?
In our comparison of seven jurisdictions on an $80,000 salary, Nunavut was lowest at $12,131.62 in total income tax. Nova Scotia was highest at $17,991.63.
Does Alberta have a sales tax?
Alberta has no provincial sales tax. Only the 5% GST applies, based on the sales tax data we checked.
Which province taxes me if I move mid-year?
The one you live in on 31 December decides the provincial tax for the whole year.
Do these figures include CPP and EI?
No. They cover income tax only. Payroll contributions are extra and slightly different in Quebec.