A and B take home the same
$33,333 per year each
Line by line
Amounts per year. Green deltas favour B, red favour A.
| Line item | A · B.C. | B · Alberta | B − A |
|---|---|---|---|
| Income | |||
| Gross income | $40,000 | $40,000 | ±0 |
| Taxable incomeafter the CPP enhanced deduction | $39,635 | $39,635 | ±0 |
| Payroll programs | |||
| CPP + CPP2 | $2,172 | $2,172 | ±0 |
| EI premium | $652 | $652 | ±0 |
| Income tax | |||
| Federal taxafter credits | $2,691 | $2,691 | ±0 |
| Provincial taxafter credits | $1,342 | $1,153 | −$189 |
| Low-income creditsON reduction + LIFT · BC reduction | −$189 | $0 | −$189 |
| Bottom line | |||
| Total deductions | $6,667 | $6,668 | +$0 |
| Take-home | $33,333 | $33,332 | −$0 |
| Effective deduction rateshare of gross lost to tax, CPP and EI | 16.7% | 16.7% | ±0 |
| True marginal rateon the next $100 | 29.2% | 27.9% | −1.3 pts |
Download comparison (PDF)This ledger, then a full statement for A and for B.
A — $40,000 in British Columbia
Keeps $708 of the next $1,000. Both maps share one axis.
Hover or tap a segment to inspect it.
Hover or tap a segment to inspect it.
B — $40,000 in Alberta
Keeps $721 of the next $1,000. Both maps share one axis.
Hover or tap a segment to inspect it.
Hover or tap a segment to inspect it.
Why $40,000 takes home the same in both
Federal tax ($2,691), CPP and EI ($2,824) are identical in both provinces — they depend only on your income.
Provincial tax comes out the same too.
| Provincial tax | B.C. | Alberta | Pays more |
|---|---|---|---|
| Tax on the brackets | $2,220 | $3,171 | Alberta +$951 |
| Less credits: basic personal amount, CPP, EI | − $878 | − $2,018 | B.C. +$1,140 |
| Less low-income credits | − $189 | -$0 | Alberta +$189 |
| Provincial income tax | $1,152 | $1,153 | same |
Your next dollar in each province
On a $1,000 raise from $40,000 you would keep $708 in British Columbia and $721 in Alberta.
British Columbia
29.2%
true marginal · bracket rate 19.6% (14% federal + 5.6% provincial)
Higher than the bracket rate because payroll contributions still come off each new dollar (CPP at 5.95% and EI at 1.63%) until you pass their yearly maximums; BC's tax reduction credit shrinks by 3.56% of each dollar above $25,570.
Alberta
27.9%
true marginal · bracket rate 22.0% (14% federal + 8% provincial)
Higher than the bracket rate because payroll contributions still come off each new dollar (CPP at 5.95% and EI at 1.63%) until you pass their yearly maximums.
Who keeps more at every salary
Take-home in British Columbia and Alberta on the same salary, checked every $100 from $0 to $500,000.
- Up to $24,500, take-home is identical: credits cancel all provincial tax in both.
- From $24,500 to $40,100, British Columbia keeps more — up to $173 a year (at $26,800).
- From $40,100 to $48,600, the two stay within $69 a year of each other.
- From $48,600 to $148,300, British Columbia keeps more — up to $957 a year (at $101,900).
- From $148,300 up, Alberta keeps more — $17,805 a year by $500,000, and still growing.
What sets each province apart
The 2026 rules behind the numbers above.
British Columbia
- 7 brackets, from 5.6% up to 20.5% above $265,545 — the most steps of the three provinces.
- Budget 2026 raised the lowest rate from 5.06% to 5.6%, and with it the rate every B.C. credit is worth. Bracket indexation is paused for 2027–2030.
- A basic personal amount of $13,216, credited at 5.6% — worth $740. The B.C. tax reduction credit (up to $690) cancels B.C. tax on low incomes, shrinking by 3.56% of income above $25,570.
Alberta
- 6 brackets, from 8% up to 15% above $370,220. Budget 2025 added the 8% bracket on the first $61,200; credits are now valued at 8% too.
- A basic personal amount of $22,769, credited at 8% — worth $1,822 — the largest of the three provinces.
- No surtax, no health premium and no low-income tax reduction: what the brackets and credits say is what you pay.
This compares income tax, CPP and EI only. Sales tax differs too — Alberta has no provincial sales tax, B.C. charges 7% PST and Ontario's HST is 13% — and so do housing, car insurance and everything else a move changes.