Compare taxes and see how much you save moving from Alberta to British Columbia
For Canadian retirees choosing between Alberta and British Columbia, the income tax calculation may surprise you: BC has lower provincial income tax than Alberta at most retirement income levels. At $80,000 retirement income, BC retirees pay $3,106 less in provincial income tax than Albertans. However, Alberta's no-PST advantage saves approximately $2,000/year on retirement spending. The result: BC has a net income tax advantage of roughly $1,100/year at typical retirement incomes of $80,000. For retirees with higher incomes from RRSPs, pensions, and investment income, BC's advantage shrinks as its higher top rates kick in above $100,000. The retirement decision between these two provinces ultimately comes down to climate (BC's mild weather is a strong pull), proximity to family, and healthcare quality.
No Provincial Sales Tax
5 progressive brackets from 10% to 15%
Lower Income Tax for Retirees
7 progressive brackets from 5.06% to 20.5%
At $80,000 income:
BC retirees pay $3,106 less in provincial income tax than Alberta at $80,000 retirement income. Alberta's no-PST saves ~$2,000 on retirement spending — but BC's income tax advantage remains for most retirees.
| Income | AB Tax | BC Tax | Savings | 10-Year |
|---|---|---|---|---|
| $40,000 | $4,000 | $2,024 | $1,976 | $19,760 |
| $60,000 | $6,000 | $3,354 | $2,646 | $26,460 |
| $80,000 | $8,000 | $4,894 | $3,106 | $31,060 |
| $100,000 | $10,000 | $6,549 | $3,451 | $34,510 |
| $140,000 | $14,000 | $11,437 | $2,563 | $25,630 |
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Send Money To/From Canada →BC has lower provincial income tax at most retirement income levels. At $80,000 retirement income, BC saves $3,106/year on income tax. Alberta's no-PST saves roughly $2,000/year on spending. Net advantage to BC: approximately $1,100/year at typical retirement incomes. Above $140,000 retirement income, the gap narrows further.
CPP (Canada Pension Plan) and OAS (Old Age Security) are both taxable as regular income at the provincial level in both Alberta and BC. Federal tax treatment is the same in both provinces. Provincial income tax rates determine how much you pay on this income — BC's lower rates mean lower tax on CPP and OAS payments.
RRSP withdrawals are taxed as regular income in both provinces. The same provincial rates apply as to other income. A retiree drawing $80,000/year from an RRIF (Registered Retirement Income Fund) in BC will pay $3,106 less in provincial tax than in Alberta at that income level.
Both provinces offer excellent publicly funded healthcare. Alberta's AHCIP has no monthly premium. BC's Medical Services Plan premiums were eliminated in 2020 — costs now flow through an employer health tax. BC has BC PharmaCare providing drug coverage for seniors on a sliding income scale. Both provinces provide good senior care, though wait times vary by region.
Vancouver offers milder weather, ocean scenery, and a cosmopolitan lifestyle — but at extreme housing costs. Calgary offers lower housing prices, no PST, and a growing urban environment — but harsher winters. For budget-conscious retirees, Calgary's lower housing cost may more than offset Vancouver's income tax advantage.
TFSAs (Tax-Free Savings Accounts) are federal and work identically in both provinces. Withdrawals from a TFSA are not taxable income and don't affect provincial tax calculations. Using a TFSA efficiently reduces the taxable income in both provinces equally — it doesn't change the relative comparison between Alberta and BC.
Based on provincial income tax alone, BC is cheaper at all income levels shown ($40K–$140K). However, when Alberta's no-PST advantage (~$2,000/year on $40,000 spending) is included, the total tax burden is closer. For retirees spending significantly more than $40,000/year on taxable goods, Alberta's PST advantage can partially offset the income tax difference — but rarely fully closes the gap.