Which Province Has the Lowest and Highest Taxes?

If you are comparing overall provincial taxes, Alberta generally has the lowest taxes in Canada. Determining which province has the highest taxes is less straightforward. It depends on your income and the type of tax.

For high income earners, Newfoundland and Labrador has the highest top combined federal-provincial marginal income tax rate in 2026.

Alberta also stands out because it has no provincial sales tax.

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Which Province Has the Lowest Taxes in Canada?

Alberta generally has the lowest overall provincial tax burden.

The province has several tax advantages:

• No provincial sales tax
• No payroll tax
• Relatively low personal income taxes
• High basic personal tax amounts
• No provincial health premium

Alberta's government estimates that residents and businesses pay the lowest overall taxes compared with other provinces.

Alberta's provincial personal income tax starts at 8% on the first $61,200 of taxable income in 2026.

Does Alberta Have the Lowest Income Tax?

Not at every income level.

Provincial income taxes use different brackets and tax credits. This means the province with the lowest rate can change depending on how much you earn.

For example, Ontario's first provincial tax bracket is 5.05% in 2026. Alberta's first rate is 8%. Alberta has a much higher basic personal amount and wider tax brackets.

This is why comparing only the first tax rate can be misleading.

Which Province Has the Highest Income Tax?

It depends on how you measure it.

For very high employment income, Newfoundland and Labrador has the highest top combined federal-provincial marginal tax rate among the provinces in 2026. The top rate reaches 54.8% once taxable income exceeds $1,141,275.

Quebec has the highest standalone provincial income tax rate. Its top provincial bracket is 25.75% on taxable income over $132,245 in 2026.

Quebec's tax system works differently because residents receive a federal tax abatement. You should not simply add 25.75% to the normal federal rate when comparing Quebec with other provinces.

Which Province Has the Lowest Sales Tax?

Alberta has the lowest sales tax among the provinces.

There is no provincial sales tax in Alberta. Most taxable purchases are subject only to the 5% federal GST.

This can make a noticeable difference on larger purchases.

For example, a taxable $10,000 purchase would have $500 of GST in Alberta before considering any special tax rules or exemptions.

Which Provinces Have the Highest Sales Tax?

The highest general sales tax rate is 15% in:

• New Brunswick
• Newfoundland and Labrador
• Prince Edward Island

Quebec charges 5% GST plus 9.975% QST. That creates a combined rate of 14.975%.

Nova Scotia charges 14% HST. Ontario charges 13% HST.

Why Does Your Income Matter?

Canada uses a progressive income tax system.

You do not pay your highest tax rate on every dollar you earn. Different portions of your income are taxed at different rates.

Your actual tax bill can also depend on:

• Tax credits
• RRSP deductions
• Employment income
• Investment income
• Capital gains
• Dividend income
• Provincial tax credits

Someone earning $60,000 may find one province cheaper. Someone earning $300,000 may get a different result.

Does Moving to a Lower-Tax Province Save Money?

It can.

Income tax is generally based on the province or territory where you live on December 31 of the tax year.

Taxes should not be the only factor when comparing provinces.

You should also consider:

• Housing costs
• Salaries
• Property taxes
• Utilities
• Insurance
• Transportation
• Childcare

A province with lower income taxes may have higher costs somewhere else.

So, Which Province Has the Lowest and Highest Taxes?

Alberta generally has the lowest overall provincial taxes in Canada. It also has no provincial sales tax.

There is no single province that has the highest taxes for everyone.

For very high employment income, Newfoundland and Labrador has the highest top combined marginal income tax rate at 54.8% in 2026. For sales taxes, New Brunswick, Newfoundland and Labrador, and Prince Edward Island have the highest general rate at 15%.

Your income and spending habits ultimately determine which province would cost you the most in taxes.