Which Canadian Province Has the Highest Taxes? A Comprehensive Guide to Provincial and Territorial Tax Rates

Understanding the tax landscape in Canada is crucial for individuals and businesses alike. With varying tax rates across provinces and territories, it’s essential to be aware of the jurisdictions with the highest tax burdens. This article analyzes data from reputable sources to provide a comprehensive overview of the Canadian provinces and territories with the highest taxes, considering both income and sales tax rates.

Income Tax Rates

Quebec: Highest Income Tax Rate

Quebec stands out as the Canadian province with the highest income tax rate. Its progressive tax system imposes the following marginal tax rates:

  • 15% on the first $46,295 of taxable income
  • 20% on the next $46,285
  • 24% on the next $20,075
  • 25.75% on taxable income exceeding $112,655

Provincial Sales Tax (PST)

Quebec: Highest PST Rate

In addition to income tax, Quebec also has the highest PST rate in Canada, currently set at 9.975%. This provincial sales tax is applied to most goods and services purchased within the province.

Harmonized Sales Tax (HST)

New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island: Highest HST Rates

Several Canadian provinces have implemented the HST, which combines the federal GST with a provincial component. The provinces with the highest HST rates are:

  • New Brunswick: 15%
  • Newfoundland and Labrador: 15%
  • Nova Scotia: 15%
  • Ontario: 13%
  • Prince Edward Island: 15%

Total Tax Burden

Quebec: Highest Overall Tax Burden

Considering both income tax and sales tax rates, Quebec emerges as the Canadian province with the highest overall tax burden. Its combination of high income tax rates and PST results in a significant tax liability for individuals and businesses operating within the province.

Understanding the tax rates across Canadian provinces and territories is essential for informed decision-making. Quebec stands out as the jurisdiction with the highest income tax rate and PST rate, leading to a substantial overall tax burden. Individuals and businesses considering relocation or investment in Canada should carefully assess the tax implications in different provinces to optimize their financial outcomes.

Which Canadian province has highest taxes?


Which provinces pay the most taxes?

Quebec has the highest taxes of all the Canadian provinces and territories but also finances a larger number of services than the other governments, such as colleges, universities, community health clinics (CLSCs), daycare, and more.

What province has the highest sales taxes?

The provinces with the highest combined sales tax rates in Canada are New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island, all with a 15% rate.

Are taxes higher in Canada or USA?

The IRS taxes the richest Americans at 37%, whereas the top federal tax rate in Canada is 33%. Wealthy Americans have access to many tax deductions that Canada’s Alternative Minimum Tax does not allow.

Which province is the richest in Canada?

As of 1981, per capita GDP in Canada was 92 per cent of that of the U.S.; by 2022 it had fallen to just 73 per cent. Drill down into the national data and it looks even worse. The economist Trevor Tombe has shown that Canada’s richest province, Alberta, would rank 14th among U.S. states.

Which provinces have the highest sales tax?

The provinces with the highest sales tax rate are New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island. These regions impose a 15% sales tax on goods and services. Do all Canadian provinces have sales tax? Yes, all Canadian provinces have sales tax. How much exactly each province charges, though, varies.

Which province pays the highest taxes in Canada?

Similarly, our provincial tax will be reduced by our provincial basic amount. So, based on 2019 rates and an income of $65,000, Quebec is the province that pays the highest in taxes with Nunavut residents paying the lowest. However, Quebec residents pay less federal taxes than residents of other provinces, and get an abatement of 16.5%.

Which provinces have the lowest sales tax rate?

All of these regions have a total tax rate of only 5%, as they only charge GST and not PST. Of the provinces with the lowest sales tax rate, Alberta has the most central location. Hence, if you’re seeking relocation opportunities where you can minimize your day-to-day taxes, Alberta is the province to consider.

How are provincial income tax rates determined?

Your provincial income tax rate is determined by where you live at the end of the tax year. While there are federal income tax rates that apply to all Canadians, each province and territory also has its own income tax rates. Combining these two rates helps determine what you might pay in annual income taxes. What are provincial income tax rates?

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