Compare taxes and see how much you save moving from Alberta to Ontario
Albertans considering a move to Ontario will pay less provincial income tax — Ontario's rates are lower at every income level, saving $2,959 per year at $100,000. However, moving to Ontario means gaining Ontario's 13% HST, replacing Alberta's GST-only environment. On $40,000 of annual spending, that adds roughly $3,200 in sales tax costs. The net result is a near wash for many earners, with the income tax saving and the sales tax cost roughly offsetting each other. The real decision drivers are usually career opportunities, housing, and lifestyle.
No Provincial Sales Tax
5 progressive brackets from 10% to 15%
Lower Income Tax
5 progressive brackets from 5.05% to 13.16%
At $100,000 income:
Moving from Alberta to Ontario saves $2,959/year on provincial income tax at $100,000. Ontario's 13% HST (vs Alberta's 5% GST) adds roughly $3,200 in sales tax on $40K spending — nearly a wash.
| Income | AB Tax | ON Tax | Savings | 10-Year |
|---|---|---|---|---|
| $50,000 | $5,000 | $2,525 | $2,475 | $24,750 |
| $75,000 | $7,500 | $4,753 | $2,747 | $27,470 |
| $100,000 | $10,000 | $7,041 | $2,959 | $29,590 |
| $150,000 | $15,035 | $12,563 | $2,472 | $24,720 |
| $250,000 | $27,883 | $25,023 | $2,860 | $28,600 |
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Send Money To/From Canada →On income tax, yes — Ontario's provincial rates are lower at every income level. At $100,000, you save $2,959 per year. However, moving to Ontario means paying 13% HST instead of Alberta's 5% GST. On $40,000 of annual spending, that's approximately $3,200 more in sales tax per year — nearly cancelling out the income tax saving. The net impact depends on your spending habits.
On income tax alone, Ontario is cheaper by $2,959 at $100K. On total tax burden (income + sales tax), the provinces are close to a wash. Where Ontario is clearly more expensive: housing (Toronto vs Calgary), cost of living, and commuting costs. For most earners, the financial difference between the two provinces is smaller than expected.
Ontario uses a progressive system with a low 5.05% starting rate, while Alberta's flat 10% applies from the first dollar earned. Although Alberta's top rate (15%) is lower than Ontario's (13.16%), the higher starting rate means Albertans pay more on typical middle-class incomes. Alberta compensates with no provincial sales tax.
Alberta 2026: 10% up to $148,269; 12% to $177,922; 13% to $237,230; 14% to $355,845; 15% above. Ontario 2026: 5.05% up to $51,446; 9.15% to $102,894; 11.16% to $150,000; 12.16% to $220,000; 13.16% above. Ontario's significantly lower bottom bracket explains why Ontario residents pay less at most income levels.
Calgary housing averages $650,000-$800,000 for a detached home versus $1.1M-$1.5M in the Greater Toronto Area. Edmonton is more affordable than both. This housing cost advantage in Alberta is often the bigger financial consideration for families, eclipsing the income and sales tax differences between the provinces.
Federal tax is identical in both provinces. All Canadians pay the same federal income tax rates. Both Alberta and Ontario residents qualify for the same federal credits (basic personal amount, RRSP deductions, childcare expenses, etc.). The only difference is the provincial income tax portion and provincial-specific tax credits.
Statistics Canada data shows interprovincial migration flows in both directions. During periods of low oil prices, Alberta loses population to Ontario and BC. During oil booms, Alberta attracts workers from across Canada. The migration pattern is heavily correlated with energy sector employment rather than the tax differential, which is relatively modest in net terms.