Alberta vs Ontario: Where Do You Keep More?

The Big Picture

Alberta and Ontario are Canada's two largest economies, but they have very different tax structures. Alberta is consistently ranked as the lowest-tax province for most income levels, while Ontario adds layers like the Ontario Health Premium and a surtax on higher earners.

Key Differences

Factor	Alberta	Ontario
Lowest provincial rate	8.0%	5.05%
Highest provincial rate	15.0%	13.16%
Basic Personal Amount	$22,769	$11,865
Provincial Sales Tax	None	8% (HST)
Health Premium	None	Up to $900/year
Surtax	None	Yes (20% + 36%)

Take-Home Pay Comparison

Here's how much more you keep in Alberta at various salary levels:

Salary	Alberta Net	Ontario Net	Alberta Advantage
$50,000	~$41,200	~$39,800	~$1,400 more
$75,000	~$58,900	~$56,500	~$2,400 more
$100,000	~$75,800	~$72,200	~$3,600 more
$150,000	~$107,700	~$102,100	~$5,600 more

Why Alberta Wins

• No provincial sales tax. You save 8% on virtually everything you buy.
• Higher BPA. Alberta's $22,769 basic personal amount is nearly double Ontario's $11,865 — meaning more income is completely tax-free.
• Flat 8% rate up to $151,234. Most Albertans only ever pay the lowest provincial rate.
• No health premium or surtax. Ontario layers additional charges on top of income tax.

But Consider Cost of Living

While Alberta's tax advantage is clear, Ontario — especially Toronto — often has higher salaries for the same role. Housing costs vary dramatically by city. Use the PayCalc comparison tool to run your specific numbers.