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Provincial Taxes

Provincial Tax Rates Comparison

12 min readUpdated December 2024

Where You Live Matters

Provincial tax rates vary significantly across Canada. The difference between the lowest and highest tax provinces can mean tens of thousands of dollars in taxes on the same income. Understanding these differences helps with financial planning.

Federal Tax Brackets 2024

All Canadians pay the same federal tax:

Taxable IncomeFederal Rate
Up to $55,86715%
$55,867 to $111,73320.5%
$111,733 to $173,20526%
$173,205 to $246,75229%
Over $246,75233%

Provincial Tax Rate Summary

ProvinceLowest RateHighest Rate
Alberta10%15%
British Columbia5.06%20.5%
Saskatchewan10.5%14.5%
Manitoba10.8%17.4%
Ontario5.05%13.16%
Quebec14%25.75%
New Brunswick9.4%19.5%
Nova Scotia8.79%21%
PEI9.65%18.75%
Newfoundland8.7%21.8%

Combined Top Marginal Rates 2024

Federal + provincial rates on highest incomes:

ProvinceTop RateStarts At
Newfoundland54.8%$1,103,478
Nova Scotia54%$150,000
Quebec53.31%$126,000
BC53.5%$252,752
Ontario53.53%$220,000
Manitoba50.4%$100,000+
New Brunswick52.5%$185,064
PEI51.75%$140,000+
Saskatchewan47.5%$148,734
Alberta48%$355,845

Lowest Tax Burden: Alberta and Saskatchewan consistently have the lowest combined tax rates, especially for middle and high-income earners. Alberta's flat 10% rate up to $148,269 is particularly advantageous.

Tax at Different Income Levels

$50,000 Income

ProvinceProvincial TaxTotal Tax*
Alberta$3,350$8,850
Ontario$2,270$7,770
BC$2,360$7,860
Quebec$5,900$11,400
Nova Scotia$3,660$9,160

*Approximate, before credits

$100,000 Income

ProvinceProvincial TaxTotal Tax*
Alberta$8,500$23,500
Ontario$6,880$21,880
BC$6,420$21,420
Quebec$14,300$29,300
Nova Scotia$9,800$24,800

$200,000 Income

ProvinceProvincial TaxTotal Tax*
Alberta$21,800$61,800
Ontario$22,900$62,900
BC$24,400$64,400
Quebec$38,100$78,100
Nova Scotia$31,800$71,800

Territories Tax Rates

TerritoryLowest RateHighest Rate
Yukon6.4%15%
NWT5.9%14.05%
Nunavut4%11.5%

Territories generally have lower rates, plus Northern Residents Deduction benefits.

Provincial Sales Tax Impact

Total tax burden includes sales taxes:

ProvinceSales TaxType
Alberta5%GST only
Saskatchewan11%GST + PST
Manitoba12%GST + PST
Ontario13%HST
BC12%GST + PST
Quebec14.975%GST + QST
Atlantic15%HST

Total Tax Picture: Alberta's advantage increases when you include sales tax. With no PST and lower income taxes, Albertans keep significantly more of their income.

Factors Beyond Tax Rates

Consider Total Benefits

  • Quebec's higher taxes fund $8.70/day daycare
  • Provincial health coverage varies
  • Education funding and availability
  • Public transit subsidies

Cost of Living

  • Housing costs vary dramatically
  • Lower tax provinces may have higher other costs
  • Remote/northern areas have additional benefits

Tax Planning Implications

Moving Between Provinces

  • Provincial tax based on December 31 residence
  • Moving mid-year = new province's rates for whole year
  • Capital gains timing around moves matters

Income Splitting Value

  • More valuable in high-tax provinces
  • Quebec benefit significant due to high rates
  • Less benefit in Alberta's flat-rate system

RRSP Deduction Value

  • Deduction worth more in high-tax provinces
  • Quebec: ~40%+ combined marginal rate for many
  • Alberta: Often 25% combined rate

Provincial Surtaxes

Some provinces add surtaxes:

  • Ontario: 20% on provincial tax over $5,554, additional 36% over $7,108
  • PEI: 10% surtax on provincial tax over $12,500

Health Premiums

  • Ontario: Health Premium up to $900/year
  • BC: Employer Health Tax (no individual premium)
  • Quebec: RAMQ (no premium)
  • Alberta: No health premium

Questions About Provincial Tax Rates?

Our AI tax assistant can help calculate your taxes in different provinces.

Ask the Tax Assistant

Disclaimer: Tax rates and brackets are subject to change. Verify current rates with provincial governments.