Best and Worst Provinces in Canada for Your Wallet (Tax Comparison in 2025)

For many Canadians, deciding where to live or establish a business can hinge on the local tax environment. Each province has its own approach to income tax rates, sales taxes, and property levies, meaning the best and worst provinces in Canada in terms of taxing can vary depending on one’s personal circumstances. Whether you’re trying to minimize income deductions, keep sales tax low, or get the best corporate rates, it helps to compare different regions. While no two provinces are identical—some prioritize social services with higher rates, others strive for growth with leaner levies—the bottom line remains: understanding tax-friendly provinces in Canada can save you substantial money in the long run.

Below, we’ll explore four that commonly rank among the best provinces in Canada for taxes, followed by four that tend to be labeled the worst provinces in Canada for taxes. Our snapshot includes factors like personal income tax brackets, sales taxes, and any notable deductions or exemptions that might sway your wallet. Keep in mind, these are broad impressions drawn from 2025 data and typical cost-of-living surveys—individual experiences and business profiles could alter the equation. Still, if you’re looking for an at-a-glance view of how Canadian provinces stack up in terms of government levies, this list should guide you in deciding where your tax burden might be lightest or heaviest.

Best Provinces in Canada for Taxes

1. Alberta

Topping many lists of the best and worst provinces in Canada in terms of taxing, Alberta is widely known for its friendly tax environment. The province stands out for having no provincial sales tax (PST), relying instead on revenues from natural resources like oil and gas. This approach means everyday purchases are only subject to the federal Goods and Services Tax (GST), making consumer spending a bit cheaper compared to other regions. For individuals and small businesses, Alberta’s income tax brackets remain generally competitive, further solidifying its reputation among tax-friendly provinces in Canada.

In 2025, Alberta continues to benefit from resource-driven prosperity, which translates to relatively moderate tax rates across personal and corporate tiers. Many find it attractive for setting up shop, especially in sectors like tech startups or manufacturing. Combined with a robust job market in Calgary and Edmonton, these factors keep Alberta on the radar for those evaluating the best provinces in Canada for taxes as part of a relocation or expansion plan. Of course, no single province is perfect: property taxes can still vary and resource reliance introduces economic volatility, but for many, Alberta remains a strong contender.

2. Saskatchewan

Saskatchewan boasts a balanced approach that lands it among the best and worst provinces in Canada in terms of taxing—but generally on the advantageous side. While the province does levy a provincial sales tax (PST), it sits lower than some eastern counterparts at 6%. Additionally, personal and corporate tax rates in Saskatchewan have historically been aimed at fostering agricultural and resource development, making it a favorite among certain entrepreneurs and skilled professionals. Even as the local economy diversifies, it retains a modest tax scheme to spur inward investment.

Compared to provinces like Quebec or Nova Scotia, Saskatchewan’s combined tax burden still tends to be lower, positioning it among the tax-friendly provinces in Canada. However, the province also invests in health and educational systems that maintain a good quality of life, so many residents find the trade-off worthwhile. For people drawn to smaller cities or rural living with direct access to farmland and energy sectors, Saskatchewan can be an appealing choice if you’re seeking best provinces in Canada for taxes that balance moderate levies with supportive public services.

3. British Columbia

While British Columbia does impose a provincial sales tax, it often shows up on “best-of” lists for those wanting a holistic blend of lower-mid income tax rates, robust job markets, and a relatively stable economy. BC also often leans to the “best” side for many middle-income earners. It’s worth noting, though, that Vancouver’s high property costs can offset any benefits in personal tax structure. Still, for individuals whose main concern is wage taxation rather than real estate, BC remains reasonably competitive.

One reason BC finds itself in the conversation about tax-friendly provinces in Canada is its emphasis on attracting tech, film, and green energy sectors. Tax incentives are frequently offered to businesses, making it compelling for startups or creative industries. With mild climates and global connections, British Columbia’s overall allure often outweighs the moderate PST. So if you’re comfortable navigating pricier housing markets, BC’s mix of opportunity and fair (though not minimal) taxation could land it on your short list for the best provinces in Canada for taxes relative to your career goals.

4. Ontario

While Ontario is Canada’s most populous province, it still merits inclusion among the best and worst provinces in Canada in terms of taxing, leaning slightly more favorable for certain earners. Yes, Ontario levies a Harmonized Sales Tax (HST) at 13%, blending federal and provincial components. Yet, personal income tax rates here remain moderately placed relative to higher-tax Atlantic provinces or Quebec. Moreover, Ontario’s extensive job market across Toronto, Ottawa, and other metropolitan areas often offsets concerns about the tax burden, thanks to higher average incomes.

Many companies also enjoy targeted business credits, fueling Ontario’s reputation as a magnet for finance, tech, and manufacturing. These policies help it rank decently among tax-friendly provinces in Canada from a corporate perspective—particularly for entrepreneurs seeking a large consumer base. Although living costs in big-city hubs can erode some benefits, if you’re aiming for a dynamic economy with decent tax structures, Ontario stands as a viable choice among the best provinces in Canada for taxes. Just be prepared for real estate sticker shock if you opt to settle in Toronto’s downtown core.

Worst Provinces in Canada for Taxes

1. Quebec

Quebec is often deemed the “worst” for those seeking minimal levies. Known for comparatively high income tax rates and a provincial sales tax (QST) that stacks with GST (resulting in almost 15%), Quebec can feel pricey to many newcomers. That said, the province offers robust social services—like subsidized daycare and comprehensive healthcare—which some residents consider a worthy trade-off. Still, if your primary focus is to keep tax bills low, Quebec’s structure might pose a challenge.

In 2025, Quebec continues to hold its place in high tax provinces in Canada, though the government frequently adjusts credits and brackets to ease burdens for lower-income citizens. French-speaking professionals may appreciate the cultural richness and job opportunities in Montreal, but they should brace for property taxes and income levies that run steeper than in places like Alberta. Ultimately, living in Quebec can be rewarding for those who value strong public services, but from a purely monetary perspective, it lands among the worst provinces in Canada for taxes.

2. Nova Scotia

Over in Atlantic Canada, Nova Scotia consistently appears on lists of worst provinces in Canada for taxes due to high personal income tax brackets and a combined sales tax rate (HST of 15%) that pushes consumer costs upward. Residents often note that, while the province’s natural beauty and maritime culture are appealing, the heavier tax load stands in stark contrast to places like Alberta or Saskatchewan. In addition, some business owners feel the corporate environment can be less enticing, since smaller companies face steep overheads.

Even with these downsides, Nova Scotia invests significantly in healthcare, education, and infrastructure, using those collected revenues to bolster local communities. Some argue it’s the price for quality-of-life benefits like scenic coastlines and tight-knit neighborhoods. But strictly from a cost-of-living vantage, many label Nova Scotia as one of the high tax provinces in Canada. If your budget is sensitive to additional levies, you might weigh these factors before making a maritime move.

3. Prince Edward Island (PEI)

Prince Edward Island, though Canada’s smallest province by landmass, also ranks among the worst provinces in Canada for taxes for individuals seeking minimal living expenses. Similar to Nova Scotia, PEI enforces a combined HST that can stretch limited incomes further than expected (15%). Income tax brackets here, especially in mid-to-upper ranges, also run slightly higher compared to more tax-friendly areas, which can deter some professionals from settling on the island.

Nonetheless, PEI’s laid-back lifestyle and stunning coastal panoramas do provide intangible perks. Many residents embrace the idea that higher taxes help sustain local communities, small schools, and essential services. Even so, if your objective is to land somewhere with the lowest tax provinces in Canada approach, PEI’s scenic charm might come at a premium. Weighing the tight-knit maritime culture against the cost to your wallet is crucial if you’re eyeing this island gem.

4. Manitoba

Though often overshadowed by Ontario and Quebec in national discussions, Manitoba commonly appears among the worst provinces in Canada for taxes in certain analyses. Besides levying a 7% provincial sales tax on top of GST, Manitoba’s personal income tax system can be less forgiving at middle and higher tiers than some had hoped, leading many wage earners to see a notable cut in take-home pay. While property taxes in Winnipeg might be more moderate than in Toronto or Vancouver, the overall bite from combined levies remains noticeable.

Still, Manitoba invests these revenues into expansive public services, ranging from healthcare to community programs. People who appreciate smaller city vibes or rural living might find the cost of housing lower than in major urban hubs, somewhat balancing out the heavier tax rates. Even so, from a purely fiscal standpoint, analysts frequently categorize Manitoba among the high tax provinces in Canada, making it less attractive for those laser-focused on maximizing disposable income. As always, the final decision hinges on how much weight you give to local amenities versus raw tax numbers.

Canadian Taxes: With Us or Against Us

From minimal levies in Alberta to higher burdens in Quebec, the picture of best and worst provinces in Canada in terms of taxing reflects a tapestry of priorities and economic realities. One thing we can all agree on is that Canada’s taxes are high in all provinces. However, some provinces leverage resources or business incentives to keep rates a little lower, while others invest heavily in social services, offsetting that choice with steeper brackets. If your main goal is to keep personal or corporate taxes down, Alberta and Saskatchewan usually top the list, but if you seek robust government programs, provinces like Quebec or Manitoba might feel worth the higher price.

Ultimately, where you land on the scale of tax-friendly provinces in Canada depends on personal preferences—like career objectives, cultural ties, or the desire for scenic coastal living. A single number, like the provincial sales tax, never tells the complete story; property costs, wage levels, and available government services also weigh heavily on the cost-benefit equation. As you weigh the best provinces in Canada for taxes against each region’s lifestyle and opportunities, remember that what’s “worst” for one individual could be “best” for another, underscoring the need to consider both financial and personal factors in your final decision.

‍