Lowest Taxes in Canada: Which Province?

There isn’t one single “lowest tax” province for everyone in Canada.

Your total tax burden depends on:

• How much you earn

• Whether you’re employed or self-employed

• How much you spend (sales tax)

• Where you live (provincial/territorial rules)

That said, a few places consistently stand out as lower-tax environments for many people.

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Provinces/Territories With the Lowest Sales Taxes

If you care a lot about sales tax on everyday purchases, the lowest-tax places are those with no provincial sales tax.

They only charge the federal 5% GST:

• Alberta

• Yukon

• Northwest Territories

• Nunavut

Everywhere else adds a provincial portion (PST or HST), so your total sales tax is higher at the checkout.

Income Tax: Where Are Personal Tax Rates Lower?

On the income tax side, the picture is more nuanced and depends on your bracket. Broadly:

• Lower overall personal income tax for many earners:

  • Alberta

  • Saskatchewan

  • British Columbia

  • The territories (Yukon, NWT, Nunavut), depending on income level

• Higher overall personal taxes (especially at mid–higher incomes):

  • Quebec

  • Several Atlantic provinces

That doesn’t mean “everyone pays less in Alberta/Sask/BC/territories” or “everyone pays more in Quebec/Atlantic”—but for many middle- and higher-income earners, that’s how the rankings tend to shake out once you combine federal + provincial/territorial income tax.

So… Which Province Has the Lowest Taxes Overall?

If you’re looking at overall tax burden for a typical earner (income + sales tax):

• Places like Alberta and the three territories often land on the “lower tax” side because they:

  • Have no provincial sales tax, and

  • Tend to have competitive personal income tax rates for many brackets

But the “best” province for tax purposes can change based on:

• Your exact income

• Whether you own property (property tax is local)

• Whether you run a business

• Family situation (credits, benefits, etc.)

What You Can Control, Regardless of Province

You can’t instantly move provinces to chase a slightly lower tax rate—but you can:

• Maximize after tax savings with higher-interest accounts

• Reduce interest paid on debt

• Earn cash back on your everyday spending

• Keep a tighter budget so tax time isn’t stressful