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HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A Ontario VS COUNTRY B Alberta

Side-by-side analysis of income tax, effective rates, and take-home pay for Ontario and Alberta in 2026.

Daniel · CountryTaxCalc Updated October 2026 Tax Comparison 2026
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OVERVIEW
Alberta's provincial income tax is lower than Ontario's at almost every income from about $40,000 up. Ontario starts at 5.05% while Alberta starts at 8% (10% above $61,200), but Ontario's surtax and Health Premium lift its effective rate well above Alberta's, to about 20.5% at the top versus Alberta's 15%. At $100,000 income, an Albertan pays $253 less in provincial income tax than an Ontario resident; at $150,000 Alberta is $3,138 cheaper, and at $250,000 it is $10,140 cheaper. Ontario is cheaper only in a narrow band of roughly $29,000-$39,000. Alberta's other tax advantage is its zero provincial sales tax — Albertans pay only 5% GST versus Ontario's 13% HST, saving roughly $3,200 per year on $40,000 of spending. Combining both, Alberta has the lower total provincial tax burden at every income level shown. Figures are provincial income tax only, single filer wage income, after 2026 provincial credits (basic personal amount, CPP and EI), with Ontario's surtax, tax reduction, LIFT credit and Health Premium included.
Section 01

The Big Picture

Top-line rates and effective take-home for a typical earner — including income tax, social contributions, and applicable surcharges.

🍁
COUNTRY A
Ontario
TAX RATE
5.05-13.16%
Lower Tax Only at ~$29-39K

5 progressive brackets from 5.05% to 13.16%

🏔️
COUNTRY B
Alberta
TAX RATE
8-15%
No Provincial Sales Tax

6 progressive brackets from 8% to 15%

TYPICAL ANNUAL DIFFERENCE
Moving from Ontario → Alberta at $100,000
$253

Alberta residents pay $253 less in provincial income tax than Ontario at this income (Ontario figure includes surtax and Health Premium), and Alberta's no-PST advantage (~$3,200 on $40K spending) adds to it. At $250,000 the income-tax gap is $10,140.

Section 02

Tax Savings by Income Level

Net take-home after all income tax, social contributions, and surcharges — for a single employee with no dependents.

GROSS INCOME
🍁 ON TAX
🏔️ AB TAX
SAVINGS
10-YEAR
$50,000
$2,265
$1,892
-$373
-$3,730
$75,000
$4,446
$4,010
-$436
-$4,360
$100,000
$6,723
$6,470
-$253
-$2,530
$150,000
$14,608
$11,470
-$3,138
-$31,380
$250,000
$34,161
$24,021
-$10,140
-$101,400
🍁

Ontario Pros & Cons

+ PROS
  • Lower provincial income tax than Alberta only in a narrow band (about $29K-$39K)
  • Toronto: Canada's largest financial and tech job market
  • World-class universities — U of T, Western, Queen's
  • Excellent public transit and healthcare infrastructure
− CONS
  • 13% HST (8% provincial component added to every purchase)
  • Extremely high Toronto housing costs
  • Heavy traffic in the GTA
  • Higher cost of living overall
🏔️

Alberta Pros & Cons

+ PROS
  • No provincial sales tax — only 5% GST on purchases
  • Lower housing costs vs Toronto (especially outside Calgary)
  • High average wages driven by oil and gas sector
  • Strong economy with diversified growth in tech and finance
− CONS
  • Higher provincial income tax than Ontario only at roughly $29K-$39K incomes
  • Economy exposed to oil price volatility
  • No public transit outside major cities
  • Income tax starts at 8% on the first $61,200, then 10% to $154,259
FAQ

Frequently Asked Questions

Does Alberta really have lower taxes than Ontario?

Yes, at almost every income from about $40,000 up. On provincial income tax, Alberta is cheaper (at $100,000: $6,470 versus $6,723 in Ontario, with Ontario's surtax and Health Premium included) and the gap widens at higher incomes because Ontario's surtax pushes its effective top rate to about 20.5% versus Alberta's 15%. Ontario is cheaper only in a narrow band of roughly $29,000-$39,000. Alberta also has no provincial sales tax (PST), saving 8% on most purchases compared to Ontario's HST. Combined, Alberta's total provincial tax burden is lower at every income level shown.

How does Ontario provincial income tax compare with Alberta's?

At $100,000 income, Ontario residents pay $6,723 in provincial income tax (including surtax and Health Premium) versus $6,470 in Alberta — Alberta is $253 cheaper per year. At $75,000 Alberta is $436 cheaper and at $50,000 it is $373 cheaper. The gap widens above $100,000: at $150,000 Alberta is $3,138 cheaper, and at $250,000 it is $10,140 cheaper.

Why do people say Alberta has lower taxes if Ontario income tax is cheaper?

Alberta's tax reputation comes from its zero provincial sales tax and its lower top rates. Albertans pay only 5% GST versus Ontario's 13% HST (5% federal + 8% provincial). On $40,000 of taxable spending per year, that is roughly $3,200 in sales tax savings — far more than the income-tax gap at middle incomes — and Alberta's provincial income tax is also lower than Ontario's at almost every income from about $40,000 up.

Is the total tax burden higher in Ontario or Alberta?

Higher in Ontario. At $100,000 income with $40,000 in annual spending: Alberta's income tax advantage is $253 and its no-PST advantage is roughly $3,200, so Alberta's total provincial tax burden is about $3,453 per year lower. The gap widens with income (about $13,300 per year at $250,000). Low spenders at moderate incomes see the smallest difference.

What are Ontario's provincial income tax brackets for 2026?

Ontario 2026 provincial brackets: 5.05% on income up to $53,891; 9.15% from $53,891 to $107,785; 11.16% from $107,785 to $150,000; 12.16% from $150,000 to $220,000; 13.16% on income above $220,000. The basic personal amount credit is $12,989. Ontario also charges a surtax of 20% of Ontario tax over $5,818 plus 36% of Ontario tax over $7,446, and the Ontario Health Premium (up to $900). Source: CRA payroll deductions tables (T4032-ON).

What are Alberta's provincial income tax brackets for 2026?

Alberta 2026 provincial brackets: 8% on income up to $61,200; 10% from $61,200 to $154,259; 12% from $154,259 to $185,111; 13% from $185,111 to $246,813; 14% from $246,813 to $370,220; 15% on income above $370,220. The basic personal amount credit is $22,769. Source: CRA payroll deductions tables (T4032-AB).

Should I move from Ontario to Alberta for tax reasons?

On provincial income tax, Alberta is cheaper at almost every income from about $40,000 up, and Ontario is cheaper only in a narrow band of roughly $29,000-$39,000. Including Alberta's no-PST benefit, Alberta has the lower total provincial tax burden at every income level shown. Most Ontario-to-Alberta moves are also driven by higher wages in Alberta's energy sector, lower housing costs, and lifestyle preferences. Use our calculator to model your specific situation.
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