Quebec is generally considered the most taxed province in Canada, with the highest top marginal personal income tax rate of 25.75 % 2 5 . 7 5 % for 2025. It frequently has the highest overall tax burden, including income and sales taxes. Other high-tax provinces include Nova Scotia and Newfoundland and Labrador.
Quebec: Known for having the highest provincial income tax rates in Canada. For example, the top marginal rate in Quebec can exceed 25% (provincial portion alone).
The top 20 per cent of income-earning families will pay nearly two-thirds (62.7 per cent) of federal and provincial income taxes while earning less than half (46.4 per cent) of total income. Comparatively, the bottom 20 per cent of income-earning families will pay 0.8 per cent of personal income taxes.
1. Alberta (no sales tax) Alberta is the only province that does not have its own sales tax, relying instead on its oil revenues.
Newfoundland and Labrador
Topping the list is Newfoundland and Labrador, the cheapest province in Canada for 2025. The average cost of living is $2,411.87 per month, with 1-bedroom apartments costing around $845 and homes priced at an average of $297,000.
B.C. tops list of least affordable provinces for renters
Vancouver has the lowest property tax rate in Canada, at 0.311827%. However, housing prices are significant, as a home in Vancouver is much more expensive than a property in other cities like Saint John, New Brunswick.
While the average income for the top 1% of earners is $500,000 annually, the threshold income is much lower at $315,911 annually. Those who are considered to be part of the top 1% are also considered to be upper class. There are quite a few career paths in Canada that can lead you to make an income of those in the 1%.
For a $70,000 income in Canada (using 2025 rates), you'll pay roughly $13,000 to $20,000 in total taxes (federal, provincial, CPP, EI), depending on your province, resulting in a take-home pay around $50,000-$59,000, with federal tax around 14.5% or 20.5% depending on the portion, plus provincial tax and deductions like CPP and EI.
In 2022, Canada was ranked 22nd out of the 38 OECD countries in terms of the tax-to-GDP ratio. 1. In this note, the country with the highest level or share is ranked first and the country with the lowest level or share is ranked 38th.
Highest Property Taxes in Canada
The province with the highest property taxes is Winnipeg, Manitoba, with a property tax rate of 2.64%. However, even though the property taxes are higher, the housing prices are significantly lower than in many other cities and provinces.
Overall, from 2007 and 2022, Albertans' contributed $244.6 billion to the federal government in taxes and other payments in excess of the money Ottawa spent or transferred to Alberta — more than five times as much as was contributed (on net) by either British Columbians or Ontarians.
States with the lightest tax burden:
Basic Groceries
It's a win for everyone that basic necessities like groceries are not taxed in Canada. These zero-rated items ensure that Canadians of all income levels can access the essentials without an added tax burden.
The average salary in Canada, based on the StatsCan Labour Force data for April 2025, is $67,466.88. This means that a $100,000 salary is a higher-than-average salary, by around 32.5%.
Unemployment compensation generally is taxable. Inheritances, gifts, cash rebates, alimony payments (for divorce decrees finalized after 2018), child support payments, most healthcare benefits, welfare payments, and money that is reimbursed from qualifying adoptions are deemed nontaxable by the IRS.
There isn't one single "highest tax paying country" as it depends on what's measured (income, corporate, total tax revenue), but countries like Denmark, Finland, Japan, and Ivory Coast (Côte d'Ivoire) consistently rank highest for top personal income tax rates, often exceeding 50-60%, while nations like Belgium can have the highest overall tax burden on labor (tax wedge) for average earners, with high social security. Nordic countries and some European nations generally have high income taxes, funding extensive social services.
Of course, the higher taxes Canadians pay aren't for nothing. Governments use that revenue to provide far more generous family and unemployment benefits than in the US, as well as things like subsidized post-secondary education and government-funded universal health care.
Canadians choose their least favourite province -- it's Quebec. Quebec appears to be exceptionally unpopular among Canadians polled by Leger Canada who, when asked which province is their least favourite outside their own, put Quebec at the top of the list.