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Alberta vs The National Average: How Much More Would You Pay?

Alberta has Canada's lowest provincial taxes. But when you factor in equalization, the advantage nearly vanishes. Here's the side-by-side comparison.

Side-by-Side: Alberta vs National Average

IncomeAlberta TaxAvg Province TaxProvincial Savings
$50,000$10,457(20.9%)$12,257(24.5%)$1,800
$75,000$19,092(25.5%)$22,292(29.7%)$3,200
$100,000$27,117(27.1%)$32,017(32.0%)$4,900
$150,000$44,179(29.5%)$52,279(34.9%)$8,100
$200,000$63,854(31.9%)$75,354(37.7%)$11,500

National average estimates based on weighted provincial tax rates. Actual savings vary by province.

What You Save... and What You Lose

Provincial Tax Savings

+$4,900

Lower provincial taxes at $100K income

Equalization Extraction

−$4,167

Per person, per year, sent to other provinces

Net Advantage at $100K

$733

That's your real benefit after equalization. Two dollars a day.

Net Advantage After Equalization

IncomeTax SavingsEqualization LostNet Benefit
$50,000+$1,800$4,167-$2,367
$75,000+$3,200$4,167-$967
$100,000+$4,900$4,167+$733
$150,000+$8,100$4,167+$3,933
$200,000+$11,500$4,167+$7,333

At lower incomes, equalization extraction exceeds the provincial tax savings. Alberta's lowest earners are net losers from the current system.

Calculate Your Real Tax Burden

See your personal tax breakdown — and where every dollar goes.

Frequently Asked Questions

How do Alberta taxes compare to other provinces?

Alberta has the lowest overall tax burden of any province. At $100,000 income, Albertans pay approximately $4,900 less in provincial taxes than the national average. This is due to no PST, the highest BPA ($22,769), and a low 8% bottom bracket.

Which province has the lowest taxes in Canada?

Alberta has the lowest combined provincial tax burden. It's the only province with no provincial sales tax, has the highest Basic Personal Amount ($22,769), and introduced Canada's lowest bottom bracket (8%) in 2025. However, Alberta loses a significant portion of this advantage through equalization transfers.

How much does Alberta lose to equalization?

Alberta sends approximately $4,167 per person per year through equalization payments — approximately $19.3 billion since 2015. This effectively eliminates most of the provincial tax savings Albertans enjoy, while funding provinces that may oppose Alberta's economic interests.

Data from CRA, Alberta.ca, and Parliamentary Budget Officer. View methodology →