Canada's lowest-tax province vs its most populous: the financial case for moving west
Average Annual Tax Savings: Alberta vs Ontario
Depending on income level and spending habits
Top Provincial Rate
NO SALES TAX
(5% GST only)
Top Provincial Rate
13% HST
(5% federal + 8% provincial)
| Income Range | Provincial Rate | Combined Rate (Fed + Prov) |
|---|---|---|
| $0 - $148,269 | 10% | 25% - 32.50% |
| $148,269 - $177,922 | 12% | 36% |
| $177,922 - $237,230 | 13% | 42% |
| $237,230 - $355,845 | 14% | 47% |
| Over $355,845 | 15% | 48% |
| Income Range | Provincial Rate | Combined Rate (Fed + Prov) |
|---|---|---|
| $0 - $51,446 | 5.05% | 20.05% |
| $51,446 - $102,894 | 9.15% | 29.65% |
| $102,894 - $150,000 | 11.16% | 37.16% |
| $150,000 - $220,000 | 12.16% | 43.41% |
| Over $220,000 | 13.16% | 53.53% |
Total combined federal + provincial income tax at common salary levels:
| Annual Income | Alberta Tax | Ontario Tax | Income Tax Savings |
|---|---|---|---|
| $50,000 | $7,145 | $7,822 | Alberta saves $677 |
| $75,000 | $12,895 | $14,283 | Alberta saves $1,388 |
| $100,000 | $18,645 | $21,694 | Alberta saves $3,049 |
| $150,000 | $33,145 | $39,524 | Alberta saves $6,379 |
| $200,000 | $51,145 | $61,231 | Alberta saves $10,086 |
| $300,000 | $93,145 | $106,761 | Alberta saves $13,616 |
0%
Provincial Sales Tax
On $50,000 annual spending:
$2,500 in sales tax
8%
Provincial Sales Tax
On $50,000 annual spending:
$6,500 in sales tax
Annual Sales Tax Savings in Alberta
Based on $50,000 in taxable purchases
| Purchase | Price | Alberta Tax (5%) | Ontario Tax (13%) | Savings in AB |
|---|---|---|---|---|
| New Vehicle | $45,000 | $2,250 | $5,850 | $3,600 |
| Home Renovation | $30,000 | $1,500 | $3,900 | $2,400 |
| Furniture Package | $10,000 | $500 | $1,300 | $800 |
| Electronics | $3,000 | $150 | $390 | $240 |
| Annual Income | Income Tax Savings | Sales Tax Savings* | Total Annual Savings | 20-Year Savings |
|---|---|---|---|---|
| $50,000 | $677 | $2,400 | $3,077 | $61,540 |
| $75,000 | $1,388 | $3,200 | $4,588 | $91,760 |
| $100,000 | $3,049 | $4,000 | $7,049 | $140,980 |
| $150,000 | $6,379 | $5,200 | $11,579 | $231,580 |
| $200,000 | $10,086 | $6,400 | $16,486 | $329,720 |
*Sales tax savings estimated based on spending approximately 60-80% of take-home pay on taxable goods.
At $100,000 income over a 20-year career:
By living in Alberta instead of Ontario
| Category | Calgary | Edmonton | Toronto |
|---|---|---|---|
| Average Home Price | $550,000 | $400,000 | $1,100,000 |
| 1BR Apartment Rent | $1,600/month | $1,300/month | $2,500/month |
| Utilities (monthly) | $200 | $200 | $175 |
| Gas (per litre) | $1.30 | $1.28 | $1.55 |
| Car Insurance (annual) | $1,500 | $1,400 | $2,000 |
Housing Cost Difference: Calgary vs Toronto
That's 50% less for an average home
Alberta winters are significantly harsher than Ontario's. Calgary averages -7°C in January (vs Toronto's -4°C), but wind chill can push temperatures to -25°C to -35°C. Edmonton is even colder. However, Alberta is much sunnier than Ontario—Calgary gets 333 sunny days per year vs Toronto's 305.
Alberta's economy is more tied to oil & gas than Ontario's diverse economy. During oil price downturns (2015-2016, 2020), Alberta experienced higher unemployment and economic stress. If you're not in a recession-proof industry, consider this volatility.
Stronger in Alberta: Oil & gas, engineering, construction, agriculture, some tech
Stronger in Ontario: Finance, government, media, manufacturing, pharmaceuticals, most tech
See your personalized tax breakdown for each province:
Alberta Tax Calculator Ontario Tax CalculatorAt $100,000 income, expect to save approximately $7,000 per year in combined income and sales taxes. Over a 20-year career, that's $140,000+ in tax savings alone—not counting the lower cost of living.
No. Alberta is the only Canadian province with zero provincial sales tax. You pay only the federal 5% GST, compared to Ontario's 13% HST. This saves the average household $4,000-$6,000 per year.
Significantly cheaper. Calgary's average home costs about $550,000 (half of Toronto's $1.1M). Edmonton is even more affordable at ~$400,000. Rent, gas, and car insurance are also lower in Alberta.
Colder winters (regularly -25°C to -35°C), smaller job market in certain industries, economic dependence on oil & gas, distance from Eastern Canada, and fewer cultural amenities compared to Toronto.
Oil and gas royalties have historically funded Alberta's provincial budget without needing a sales tax. This policy has been maintained since 1905 as a competitive advantage to attract residents and businesses.
Disclaimer: This comparison provides general information for educational purposes only. Tax laws change frequently, and individual circumstances vary. Consult a qualified tax professional for advice specific to your situation. Data sourced from the Canada Revenue Agency and provincial tax authorities as of January 2026.