Provincial Income Tax Rates by Province
Complete 2025 Guide to Provincial Tax Rates Across Canada
Understanding Provincial Tax Rates in Canada
Beyond federal income tax, each province and territory in Canada applies its own income tax rates to your taxable income. These provincial rates are applied in addition to federal tax rates, significantly impacting your take home pay calculation.
Important Note: Quebec administers its own income tax system separately from the Canada Revenue Agency (CRA), with unique rates and additional contributions like QPP and QPIP.
Understanding your provincial tax rates is crucial for accurate take home pay calculations, as they can vary significantly between provinces and directly affect your net income after deductions.
2025 Provincial Tax Rates Comparison
*Rates shown are the lowest provincial tax brackets for each province/territory
Ontario
Combined top marginal rate: 53.53%
British Columbia
Combined top marginal rate: 53.50%
Alberta
New for 2025: 8% tax bracket on first $60,000
Combined top marginal rate: 48.00%
Quebec
Special System: Quebec administers its own income tax separately
Combined top marginal rate: 53.30%
Includes QPP and QPIP contributions
Complete Provincial Tax Rates Summary 2025
| Province/Territory | Lowest Rate | Highest Rate | Combined Top Rate |
|---|---|---|---|
| Ontario | 5.05% | 13.16% | 53.53% |
| British Columbia | 5.06% | 20.50% | 53.50% |
| Alberta | 8.00% | 15.00% | 48.00% |
| Quebec | 14.00% | 25.75% | 53.30% |
| Saskatchewan | 10.50% | 14.50% | 47.50% |
| Manitoba | 10.80% | 17.40% | 50.40% |
| New Brunswick | 9.40% | 19.50% | 52.50% |
| Nova Scotia | 8.79% | 21.00% | 54.00% |
| Prince Edward Island | 9.65% | 16.70% | 51.37% |
| Newfoundland & Labrador | 8.70% | 21.30% | 54.30% |
Key Insights for Take Home Pay Calculations
Lowest Tax Burden
Alberta offers the most favorable tax environment with its new 8% rate on the first $60,000 and a combined top rate of only 48.00%.
Highest Tax Burden
Newfoundland & Labrador has the highest combined marginal tax rate at 54.30%, significantly impacting take home pay for high earners.
Regional Variations
Provincial tax rates can vary by over 6% between provinces, making location a crucial factor in take home pay calculations.
Quebec's Unique System
Quebec's separate tax administration includes additional contributions (QPP/QPIP) that must be factored into take home pay calculations.
Calculate Your Take Home Pay Now
Use our comprehensive calculators to determine your exact take home pay based on your province's tax rates.
Frequently Asked Questions
How do provincial tax rates affect my take home pay?
Provincial tax rates are applied in addition to federal rates, directly reducing your take home pay. The combined federal and provincial rates determine your total tax burden.
Which province has the lowest tax rates in 2025?
Alberta has the most favorable tax environment with its new 8% rate on the first $60,000 and the lowest combined top marginal rate at 48.00%.
Do I pay both federal and provincial taxes?
Yes, Canadian residents pay both federal and provincial income taxes. Quebec residents file separate provincial returns, while other provinces use a combined system.
How often do provincial tax rates change?
Provincial tax rates are typically adjusted annually for inflation and may change based on provincial budget decisions. Always use current year rates for accurate calculations.