Ontario vs British Columbia Taxes 2026

Q: Is Ontario or British Columbia better for taxes?

It depends on your income level. At lower incomes ($50K-$75K), Ontario and BC have similar tax burdens. At higher incomes ($100K+), BC becomes slightly more favorable due to its lower middle bracket rates. However, BC's higher cost of living, especially housing in Vancouver, often negates any tax savings. Ontario's 13% HST is higher than BC's 12% combined GST+PST, giving BC a slight edge on sales tax.

Q: How much more expensive is Vancouver than Toronto?

Vancouver is approximately 5-10% more expensive than Toronto overall. Housing is the biggest difference: Vancouver's average home price is about $1.2 million vs Toronto's $1.1 million. However, Toronto has higher car insurance costs and comparable rental prices. Outside of Vancouver, BC can be significantly cheaper than the GTA.

Q: What is the sales tax difference between Ontario and BC?

Ontario charges 13% HST (combined federal and provincial). British Columbia charges 5% GST + 7% PST = 12% total. This 1% difference means BC residents save about $500-$1,000 per year on taxable purchases depending on spending levels.

Q: Should I move from Ontario to BC for work?

Consider these factors: BC offers better weather (mild winters in Vancouver), outdoor lifestyle, and slightly lower sales tax. Ontario offers more diverse job markets (especially finance in Toronto), lower housing costs outside the GTA, and proximity to US markets. Tech workers often find competitive salaries in both Vancouver and Toronto. The tax difference alone rarely justifies a move—lifestyle and career opportunities matter more.

Q: Which province has higher income tax brackets in 2026?

Ontario's provincial tax brackets in 2026: 5.05% (up to $51,446), 9.15% ($51,446-$102,894), 11.16% ($102,894-$150,000), 12.16% ($150,000-$220,000), 13.16% (over $220,000). BC's brackets: 5.06% (up to $47,937), 7.70% ($47,937-$95,875), 10.50% ($95,875-$110,076), 12.29% ($110,076-$133,664), 14.70% ($133,664-$181,232), 20.50% (over $181,232). BC has more brackets but a higher top rate.

Canada's two most populous provinces compared: tax rates, cost of living, and lifestyle factors

Last Updated: January 2026 | Source: CRA & Provincial Tax Authorities

Quick Comparison: Ontario vs BC at a Glance

Ontario

13.16%

Top Provincial Rate

Sales Tax: 13% HST

Population: 15.8 million

British Columbia

20.50%

Top Provincial Rate

Sales Tax: 12% (GST+PST)

Population: 5.4 million

Key Insight: While BC has a higher top marginal rate, most Canadians earn below the threshold where this matters. At typical incomes ($50K-$100K), the two provinces have very similar tax burdens. Your lifestyle preferences and career opportunities should weigh more heavily than tax differences alone.

Income Tax Brackets Comparison 2026

Ontario Provincial Tax Brackets

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%

British Columbia Provincial Tax Brackets

Income Range	Provincial Rate	Combined Rate (Fed + Prov)
$0 - $47,937	5.06%	20.06%
$47,937 - $95,875	7.70%	28.20%
$95,875 - $110,076	10.50%	31.00%
$110,076 - $133,664	12.29%	38.29%
$133,664 - $181,232	14.70%	44.02%
Over $181,232	20.50%	53.50%

Real Tax Comparison at Different Incomes

Here's what you'd actually pay in combined federal + provincial income tax at common salary levels:

Annual Income	Ontario Tax	BC Tax	Difference	Winner
$50,000	$7,822	$7,696	$126	BC saves $126
$75,000	$14,283	$13,787	$496	BC saves $496
$100,000	$21,694	$20,743	$951	BC saves $951
$150,000	$39,524	$38,188	$1,336	BC saves $1,336
$200,000	$61,231	$60,418	$813	BC saves $813

At $100,000 income, moving from Ontario to BC saves:

$951/year in income tax

Plus ~$500/year in sales tax savings (12% vs 13%)

Sales Tax Comparison

Ontario: 13% HST

Harmonized Sales Tax combines federal GST (5%) and provincial portion (8%) into a single tax.

On $50,000 annual spending:

$6,500 in sales tax

BC: 12% (GST + PST)

Separate federal GST (5%) and Provincial Sales Tax (7%). Some items exempt from PST.

On $50,000 annual spending:

$6,000 in sales tax

Saves $500

Note: BC's separate PST system means some items like basic groceries, children's clothing, and books are PST-exempt, potentially increasing savings for families.

Cost of Living Comparison

Category	Toronto (ON)	Vancouver (BC)	Difference
Average Home Price	$1,100,000	$1,200,000	Vancouver +9%
1BR Apartment Rent	$2,500/month	$2,600/month	Vancouver +4%
Utilities (monthly)	$175	$125	Vancouver -29%
Car Insurance (annual)	$2,000	$1,800	Vancouver -10%
Groceries (monthly)	$450	$475	Vancouver +6%
Restaurant Meal (avg)	$22	$24	Vancouver +9%

Outside Major Cities: Costs drop significantly in both provinces. Cities like Ottawa (ON), Hamilton (ON), Victoria (BC), and Kelowna (BC) offer lower housing costs while maintaining good amenities. The Vancouver vs Toronto comparison doesn't reflect the full provincial picture.

Who Should Choose Ontario?

Ontario Advantages

Larger, more diverse job market (especially finance, government)
Proximity to US markets and business hubs
More affordable options outside GTA (Ottawa, London, etc.)
Stronger healthcare system capacity
Four distinct seasons if you enjoy variety
Major international airport hub (Pearson)

Ontario Drawbacks

Harsh winters (-15°C to -25°C common)
Higher sales tax (13% HST)
Expensive car insurance
Less access to outdoor recreation
Summer humidity can be oppressive

Who Should Choose British Columbia?

BC Advantages

Mild winters (rarely below 0°C in coastal areas)
World-class outdoor recreation (skiing, hiking, ocean)
Lower sales tax (12% vs 13%)
Growing tech sector (Vancouver's "Silicon North")
Stunning natural beauty
Active, health-focused lifestyle culture

BC Drawbacks

Highest housing costs in Canada
Smaller job market than Ontario
Rainy winters (Vancouver gets 160+ rainy days)
Geographic isolation from rest of Canada
Higher top marginal tax rate (20.5%)

The Verdict: Which Province Wins on Taxes?

BC has a slight tax advantage for most income levels, saving $500-$1,500 per year in combined income and sales tax. However:

This advantage disappears once you factor in BC's higher housing costs
A $100,000/year earner saves about $1,450/year in taxes in BC
But pays roughly $12,000 more per year for equivalent housing in Vancouver vs Toronto
The math only works in BC's favor if you can find affordable housing outside Vancouver

Bottom Line

Choose based on lifestyle, career opportunities, and climate preferences—not taxes. The provincial tax differences are minor compared to housing costs and personal factors.

Calculate Your Exact Tax in Each Province

Use our free calculators to see your personalized tax breakdown:

Ontario Tax Calculator BC Tax Calculator

Frequently Asked Questions

Is Ontario or British Columbia better for taxes?

BC has a slight edge at most income levels, saving $500-$1,500 per year in combined income and sales tax. However, BC's much higher housing costs typically outweigh this advantage, especially in Vancouver.

How much more expensive is Vancouver than Toronto?

Vancouver is approximately 5-10% more expensive overall. Housing is the biggest factor: Vancouver's average home price is about $100,000 higher than Toronto's. Utilities are cheaper in BC due to hydroelectric power.

What is the sales tax difference between Ontario and BC?

Ontario charges 13% HST. BC charges 12% total (5% GST + 7% PST). This 1% difference saves BC residents about $500-$1,000 annually depending on spending.

Should I move from Ontario to BC for work?

Consider career opportunities, lifestyle preferences, and climate more than taxes. Tech workers find opportunities in both. Finance and government jobs are stronger in Ontario. Outdoor enthusiasts often prefer BC's access to mountains and ocean.

Which province has higher income tax brackets in 2026?

BC has a higher top rate (20.5% vs Ontario's 13.16%), but this only affects income over $181,232. For most Canadians earning under $150K, the effective rates are very similar, with BC being slightly lower due to its favorable middle brackets.

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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.