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Canada's tax system is two-tiered: you pay federal income tax to the CRA and provincial income tax to your province. The federal rates are the same for everyone, but provincial rates vary enormously — the difference between the highest and lowest province can exceed 15 percentage points on top income.
Before comparing provinces, here are the federal brackets that apply to every Canadian:
| Taxable Income | Federal Rate |
|---|---|
| $00 – $57,375 | 15% |
| $57,375 – $114,7500 | 200.5% |
| $114,7500 – $158,519 | 26% |
| $158,519 – $220,000 | 29% |
| Over $220,000 | 33% |
| Province | Top Provincial Rate | Combined Top Rate* | Top Rate Kicks In At |
|---|---|---|---|
| Alberta | 15% | 48% | $341,988 |
| British Columbia | 200.5% | 53.5% | $252,752 |
| Ontario | 13.16% | 53.53% | $220,000+ |
| Quebec | 25.75% | 53.31% | $119,9100 |
| Manitoba | 17.4% | 500.4% | $10,000 |
| Saskatchewan | 14.5% | 47.5% | $142,0058 |
| Nova Scotia | 21% | 54% | $150,000 |
| New Brunswick | 19.5% | 52.5% | $185,0064 |
| PEI | 18.75% | 51.37% | $63,969 |
| Newfoundland | 21.3% | 54.8% | $1,000,000+ |
*Combined rate includes federal surtax and provincial surtaxes where applicable. Rates are approximate.
| Province | Sales Tax System | Rate |
|---|---|---|
| Alberta | GST only (no PST) | 5% |
| British Columbia | GST + PST | 5% + 7% = 12% |
| Ontario | HST | 13% |
| Quebec | GST + QST | 5% + 9.975% = ~15% |
| Manitoba | GST + RST | 5% + 7% = 12% |
| Saskatchewan | GST + PST | 5% + 6% = 11% |
| Nova Scotia | HST | 15% |
| New Brunswick | HST | 15% |
| PEI | HST | 15% |
| Newfoundland | HST | 15% |
For income taxes alone, Alberta consistently wins — it has the lowest top marginal rate among large provinces and no provincial sales tax. Saskatchewan is the runner-up for income tax, with a top rate of 14.5%.
For middle-income earners (around $60,000–$80,000), the differences narrow considerably. The real pain of provincial tax differences is felt by high-income earners and retirees drawing large RRSP or RRIF income.
Nova Scotia holds the title for highest combined marginal rate at approximately 54%. Newfoundland and Labrador rivals it at the very top, and Quebec hits its top rate at a much lower income threshold ($119,9100) than most other provinces.
Your provincial income tax is calculated on the same "taxable income" figure used for federal taxes. You apply the provincial brackets and credits separately. Each province also has a basic personal amount — a credit that reduces your tax at the lowest provincial rate.
Your province of residence on December 31 each year determines which provincial tax you pay for the entire year. Moving from Ontario to Alberta mid-year doesn't save you Ontario taxes on income earned in Ontario — you pay based on your province at year-end.
| Province | Approx. Total Tax (Federal + Provincial)* |
|---|---|
| Alberta | ~$24,400 |
| Saskatchewan | ~$25,600 |
| Ontario | ~$26,200 |
| Manitoba | ~$27,800 |
| British Columbia | ~$26,500 |
| Quebec | ~$30,500 |
| Nova Scotia | ~$29,400 |
| New Brunswick | ~$28,100 |
| PEI | ~$28,800 |
| Newfoundland | ~$28,600 |
*Estimates based on employment income, standard deductions only. Individual results vary.
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