2025-02-10
Provincial Income Tax Rates Compared 2025
Compare income tax rates across all 13 Canadian provinces and territories for 2025. See which provinces have the lowest and highest taxes for different income levels.
Canada has dramatically different tax burdens depending on which province you live in. Here’s a comprehensive comparison for 2025.
Top Marginal Rates by Province (Combined Federal + Provincial)
| Province/Territory | Top Provincial Rate | Combined Top Rate | Threshold |
|---|---|---|---|
| Nunavut | 11.5% | 44.5% | $173,205+ |
| Northwest Territories | 14.05% | 47.05% | $164,525+ |
| Yukon | 15% | 48% | $500,000+ |
| Alberta | 15% | 48% | $355,845+ |
| Saskatchewan | 14.5% | 47.5% | $152,750+ |
| British Columbia | 20.5% | 53.5% | $252,752+ |
| Manitoba | 17.4% | 50.4% | $100,000+ |
| Ontario | 13.16% | 46.16% | $220,000+ |
| Quebec | 25.75% | 53.31%* | $129,590+ |
| New Brunswick | 19.5% | 52.5% | $185,064+ |
| Nova Scotia | 21% | 54% | $150,000+ |
| PEI | 16.65% | 47.37%† | $64,313+ |
| Newfoundland | 21.3% | 54.8% | $564,429+ |
*Quebec has federal abatement of 16.5% of federal tax; combined rate is approximate. †PEI also levies a surtax on provincial tax above certain thresholds.
Mid-Range Income Comparison ($80,000)
At $80,000 annual income, here are approximate combined effective rates:
| Province | Approx. Combined Effective Rate |
|---|---|
| Alberta | ~24% |
| Ontario | ~27% |
| British Columbia | ~26% |
| Quebec | ~32%* |
| Nova Scotia | ~30% |
*Quebec effective rate is higher due to its unique provincial system.
Why Do Rates Vary So Much?
- Provincial spending priorities: Provinces with higher healthcare and education spending tend to have higher rates
- Resource revenues: Alberta has oil royalties which reduce reliance on income tax
- Harmonization: Atlantic provinces integrated GST into HST, allowing lower income rates in some cases
- Separate systems: Quebec runs its own entire tax administration
Planning Implications
- High earners can save tens of thousands per year by residing in a lower-tax province
- Corporate structure can sometimes let business owners split income across provinces
- Moving changes your province of residence for tax purposes on December 31
Key Insight: It’s Not Just the Rate
Look at the Basic Personal Amount (BPA) — the income that’s effectively tax-free:
| Province | BPA 2025 |
|---|---|
| Alberta | $22,323 |
| Quebec | $18,571 |
| Saskatchewan | $18,491 |
| Yukon | $16,129 |
| Ontario | $11,865 |
| Nova Scotia | $8,481 |
Alberta’s generous BPA ($22,323) combined with its flat provincial rate structure makes it very attractive for mid-range earners.
Use our calculators to apply these concepts to your own income. Tax information is for general guidance only — consult a CPA for advice specific to your situation.