Canada Provincial Tax 2026: Four Provinces Compared

Your province of residence on 31 December determines your provincial income tax for the year. At $80,000 gross, an Ontario employee pays roughly $14,128 in combined federal-provincial income tax (17.7% effective) while an Alberta employee pays $13,733 (17.2%). The gap compounds at higher incomes.

How provincial income tax works

Canada uses a "tax on income" system where federal and provincial taxes are calculated separately on the same taxable income. The federal brackets and credits apply to everyone equally. Each province then applies its own brackets, basic personal amount and credits. The totals are assessed on the same T1 return filed once a year with the CRA (except in Quebec, which requires a separate provincial return filed with Revenu Quebec).

Combined income tax at $60,000 gross

Province Income tax Effective rate
Ontario $8,321 13.9%
British Columbia $7,906 13.2%
Alberta $7,970 13.3%
Quebec $9,509 15.8%

Combined income tax at $80,000 gross

Province Income tax Effective rate
Ontario $14,128 17.7%
British Columbia $13,274 16.6%
Alberta $13,733 17.2%
Quebec $16,352 20.4%

Combined income tax at $100,000 gross

Province Income tax Effective rate
Ontario $20,024 20.0%
British Columbia $18,857 18.9%
Alberta $19,772 19.8%
Quebec $23,481 23.5%

All figures are income tax only (CPP and EI are not included). They assume a full-year resident with no deductions beyond the federal Basic Personal Amount, Canada Employment Amount and provincial basic personal amount. Quebec results include the federal abatement that offsets higher provincial rates.

Why Alberta is consistently lower

Alberta's first provincial bracket rate is 8% on income up to $61,200, rising only to 10% and then 12%. Combined with a generous provincial basic personal amount, this produces the lowest combined tax of the four major provinces at almost every income level. The difference versus Ontario is largest between roughly $90,000 and $220,000 where the Ontario surtax kicks in on top of the standard provincial brackets.

The Ontario surtax

Ontario is unusual in applying a surtax on top of provincial income tax once basic provincial tax (before credits) exceeds about $5,818 per year. The surtax adds 20% on provincial tax above that threshold and an additional 36% above roughly $7,446. The effect becomes significant above approximately $70,000 of income and is one reason Ontario's effective provincial rate rises faster than the nominal bracket rates suggest.

Frequently asked questions

Why is Alberta income tax often the lowest of the major provinces?

Alberta has no provincial sales tax and the lowest top marginal provincial rate of the four major provinces. Its flat 8% rate on the first $61,200 of provincial taxable income and a high basic personal amount of $22,769 in 2026 combine to produce lower provincial tax at most incomes compared with Ontario, BC and Quebec.

How is Quebec income tax different from other provinces?

Quebec levies its own income tax entirely separately from the federal system. Quebec residents receive a 16.5% federal abatement (their federal tax is reduced) because the province runs its own programs that other provinces let the federal government run. Quebec also uses QPP instead of CPP and QPIP instead of federal EI, and the QPP and QPIP rates differ from the national ones. The net effect is that a Quebec resident's combined federal-provincial tax burden is typically close to the national average despite higher provincial rates.

Does moving to a different province reduce my federal income tax?

No. The federal income tax rates are uniform across Canada (14% to 33% in 2026). Changing province affects only the provincial income tax portion of your total bill. All other things being equal, moving from Ontario to Alberta lowers your provincial tax; your federal tax stays the same.

Federal and provincial rates from CRA T4127 122nd edition (2026). Figures are income tax only; CPP, EI and provincial levies not included. Last updated 2026-11-04.