Earn $60,000 in Alberta and you keep $46,489 a year. Earn the same $60,000 in Ontario and you keep $46,843, which is $354 more. That surprises most people who assume Alberta always wins on tax. The truth: below about $39,000 Alberta’s income tax is lower, between roughly $39,000 and $130,000 Ontario wins, and at very high incomes Alberta pulls ahead again. Enter any salary in the comparison calculator below, then read on for why the crossover moves, and what sits outside the paycheck entirely. The full bracket math for each province lives in our Alberta deductions guide and Ontario deductions guide.
Ontario vs Alberta Take-Home Comparison 2026
The $60,000 Surprise, Worked Both Sides
Federal tax, CPP, and EI are identical in both provinces, so the whole comparison comes down to the provincial line:
| Ontario | Alberta | |
|---|---|---|
| Federal income tax | $6,192.73 | $6,192.73 |
| Provincial income tax | $2,624.52 | $2,978.48 |
| CPP | $3,361.75 | $3,361.75 |
| EI | $978.00 | $978.00 |
| Total deductions | $13,157.00 | $13,510.96 |
| Take-home pay | $46,843.00 | $46,489.04 |
Ontario's 5.05% bottom rate beats Alberta's 8% on the first dollars of income. Alberta's $22,769 basic personal amount softens the blow but cannot fully offset the rate gap at $60,000.
Where the Crossover Sits
The winner flips twice across the income scale:
| Salary | Ontario Take-Home | Alberta Take-Home | Winner |
|---|---|---|---|
| $30,000 | $25,178 | $25,459 | Alberta (+$281) |
| $40,000 | $32,515 | $32,501 | Ontario (+$14) |
| $60,000 | $46,843 | $46,489 | Ontario (+$354) |
| $100,000 | $73,460 | $72,883 | Ontario (+$577) |
| $150,000 | $104,207 | $105,821 | Alberta (+$1,614) |
Below about $39,000, Alberta wins because its huge basic personal amount shelters more income. From roughly $39,000 to $130,000, Ontario wins because 5.05% beats 8% on every early dollar. Above roughly $130,000, Alberta pulls ahead again as Ontario's surtax and higher top brackets bite. Nobody else publishing this comparison shows the double crossover, because nobody else runs the actual math.
Beyond the Paycheck: Where Alberta Really Wins
Income tax is only half the story. Alberta's decisive advantages sit outside the pay stub:
Sales tax. Alberta charges 5% GST only. Ontario charges 13% HST (5% federal + 8% provincial). A household spending $50,000 a year on taxable goods and services saves roughly $4,000 annually in Alberta. That dwarfs the $354 paycheck gap at $60,000.
Health premium. Ontario levies a health premium of up to $900 a year through the tax system ($600 at a $60,000 income). Alberta has no equivalent.
Minimum wage. Ontario's $17.60/hour versus Alberta's $15.00/hour means minimum-wage workers gross more in Ontario, partly offsetting the tax picture at the bottom.
Add it up for a $60,000 earner spending $40,000 on taxable purchases: Ontario wins the paycheck by $354, Alberta wins spending tax by about $3,200 and the health premium by $600. Total burden: Alberta ahead by roughly $3,400 a year. The cliche is directionally right, but the mechanism is not what most people think.
Moving Provinces: The Tax Checklist
1. Your province on December 31 decides. You pay provincial tax to the province where you resided on the last day of the tax year, not where you earned the income.
2. Update your TD1. File new federal and provincial TD1 forms with your employer after a move so withholding matches your new province from the first paycheck.
3. Watch the health premium. Moving to Ontario means the health premium appears on your return; leaving Ontario removes it.
4. Mind the sales tax on big purchases. Buying a car or furniture? The 8-point HST gap is worth timing around a move.
5. Recalculate take-home before negotiating salary. A $65,000 offer in Calgary and a $65,000 offer in Toronto are not the same money. Run both through the calculator above.
How We Computed This
Every number on this page comes from the same 2026 tax engine that powers our Ontario paycheck calculator and Alberta paycheck calculator: 2026 federal brackets (14% to 33%, BPA $16,452), Ontario brackets (5.05% to 13.16%, BPA $12,989, including the provincial surtax), Alberta brackets (8% to 15%, BPA $22,769), CPP at 5.95% to $74,600 plus CPP2 at 4% to $85,000, and EI at 1.63% to $68,900. Figures assume a single filer claiming only basic personal amounts. The Ontario health premium and sales-tax figures are computed separately because they sit outside payroll withholding. If you spot a discrepancy with the CRA's PDOC, tell us through the contact page and we will fix it the same day.
More Comparisons Coming
Ontario vs Alberta is the most-searched provincial tax matchup, but it is not the only one that matters. British Columbia vs Ontario and Quebec vs the rest of Canada are next on our comparison slate, built on the same engine and the same honest-math standard. Each will get its own interactive calculator.
Frequently Asked Questions
Which province has lower taxes, Ontario or Alberta?
For total tax burden, Alberta: no provincial sales tax and no health premium. For provincial income tax alone, it depends on income: Alberta wins below about $39,000 and above about $130,000; Ontario wins in between thanks to its 5.05% bottom rate.
How much more take-home pay do you get in Alberta vs Ontario?
At $60,000, Ontario actually leaves $354 more take-home pay ($46,843 vs $46,489). At $30,000, Alberta leaves $281 more. At $150,000, Alberta leaves $1,614 more. Use the calculator above for your exact salary.
Why is Alberta considered the lowest-taxed province?
Mostly because of what it does not charge: no PST (5% GST only vs 13% HST in Ontario), no health premium, and no land transfer tax. Its income-tax rates are not the lowest at every income level, but the total package usually is.
Do I pay tax to the province where I work or where I live?
Where you live. Your province of residence on December 31 of the tax year determines which provincial tax rates apply, regardless of where your employer is located.
Is it worth moving from Ontario to Alberta for taxes?
On a $60,000 salary with $40,000 of taxable spending, Alberta saves roughly $3,400 a year in total tax burden, mostly from sales tax. Whether that justifies a move depends on housing, wages in your field, and everything else that makes a province home.