In the Ontario vs Alberta comparison, you keep more in Alberta at most salaries. On $100,000, a single employee takes home $74,459 in Alberta versus $74,206 in Ontario. The gap comes from provincial tax, the Ontario surtax and the Ontario Health Premium.
Take-home pay side by side
| Salary | Ontario | Alberta | Difference (Alberta − Ontario) |
|---|---|---|---|
| $50,000 | $40,145 | $40,541 | +$396 |
| $75,000 | $56,926 | $57,362 | +$436 |
| $100,000 | $74,206 | $74,459 | +$252 |
| $150,000 | $104,320 | $107,458 | +$3,138 |
| $200,000 | $131,278 | $137,854 | +$6,575 |
Single employee, 2026, no RRSP. Federal tax, CPP and EI are identical in both provinces.
Why the provinces differ
- Basic personal amount: Alberta’s is the highest in Canada, so the first slice of income is free of provincial tax.
- Rates: Ontario’s first bracket rate is low (5.05%), but it climbs to 13.16%, and a surtax applies on higher provincial tax.
- Ontario Health Premium: up to $900 a year, charged through payroll.
Beyond income tax
- Sales tax: 5% GST in Alberta versus 13% HST in Ontario, which matters for everyday spending.
- Housing: Calgary and Edmonton are generally cheaper than Toronto and Ottawa.
- Wages: salaries for the same job may differ between provinces.
Moving between provinces
You pay provincial tax to the province where you live on December 31. If you move from Ontario to Alberta in the fall, you file as an Alberta resident for the whole year.
Low incomes: Alberta’s basic personal amount
Because Alberta’s basic personal amount is so high, low and modest earners pay very little provincial tax there. Ontario offsets part of the difference for low incomes with the Ontario Tax Reduction, which is not shown in the table above.
High incomes
At high incomes, the Ontario surtax raises the effective top provincial rate to about 20.5% (13.16% plus the 56% surtax), well above Alberta’s top rate of 15%. The gap in Alberta’s favour therefore grows as income rises.
RRSP savings in each province
An RRSP contribution saves tax at your combined marginal rate. Because those rates differ by province, the same contribution produces a different refund in Ontario and Alberta. See our RRSP guide for examples.
Cost of living
Alberta has no provincial sales tax, no health premium and generally lower housing costs in its main cities. Ontario offers more job opportunities in some industries, especially in the Greater Toronto Area. For many people, the decision comes down to salary and housing more than income tax.
Compare every province with the Canada income tax calculator or see the Alberta tax calculator.
Ontario vs Alberta: a worked example at $150,000
The table shows how the Ontario vs Alberta gap changes with income. At $150,000, a single employee keeps $107,458 in Alberta and $104,320 in Ontario, a difference of $3,138 a year, or about $262 a month. At $200,000 the gap reaches $6,575. Because federal tax, CPP and EI are the same in both provinces, the whole difference comes from provincial tax, the Ontario surtax and the Ontario Health Premium.
At $50,000 the picture is different: the gap is only $396 a year, about $33 a month. For modest salaries, rent and sales tax usually matter far more than the Ontario vs Alberta income tax gap.
Common mistakes when comparing provinces
- Looking at the top rate only: Ontario’s first bracket rate (5.05%) is lower than Alberta’s, so the top rate alone does not tell you who pays more at a given salary.
- Forgetting the residence rule: provincial tax depends on where you live on December 31, not on where your employer is based.
- Ignoring sales tax and housing: a few hundred dollars of income tax can be outweighed by 13% HST versus 5% GST, and by the difference in rent or mortgage payments.
- Comparing gross salaries only: the same job may pay a different salary in each province, so compare the take-home pay of each actual offer.
How to check the Ontario vs Alberta difference on your own salary
- Enter your salary in the calculator for each province and note the yearly take-home pay.
- Subtract the Ontario figure from the Alberta figure to get your personal gap.
- Include planned RRSP contributions, since they lower tax at your marginal rate in each province.
- Compare the result with the difference in rent, sales tax and commuting costs.
For official tax brackets, credits and the rules on provincial residence, see the Canada Revenue Agency. If you move during the year with income from both provinces, or have self-employment income, a tax professional can confirm how the Ontario vs Alberta rules apply to your return.
Frequently asked questions
Is take-home pay higher in Alberta or Ontario?
On $100,000, Alberta leaves $252 more than Ontario for the year.
Does Alberta have a sales tax?
Alberta has no provincial sales tax; only the 5% GST applies. Ontario charges 13% HST.
What is the Ontario Health Premium?
An extra charge of up to $900 a year on Ontario taxable income above $20,000.
Estimates for information only, not tax advice.
