A and B take home the same
$33,332 per year each
Line by line
Amounts per year. Green deltas favour B, red favour A.
| Line item | A · Ontario | 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 | $1,221 | $1,153 | −$69 |
| Ontario surtaxa tax on Ontario tax | $0 | — | ±0 |
| Low-income creditsON reduction + LIFT · BC reduction | −$518 | $0 | −$518 |
| Ontario health premium | $450 | — | −$450 |
| Bottom line | |||
| Total deductions | $6,668 | $6,668 | −$1 |
| Take-home | $33,332 | $33,332 | +$1 |
| Effective deduction rateshare of gross lost to tax, CPP and EI | 16.7% | 16.7% | ±0 |
| True marginal rateon the next $100 | 30.1% | 27.9% | −2.2 pts |
Download comparison (PDF)This ledger, then a full statement for A and for B.
A — $40,000 in Ontario
Keeps $699 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 | Ontario | Alberta | Pays more |
|---|---|---|---|
| Tax on the brackets | $2,002 | $3,171 | Alberta +$1,169 |
| Less credits: basic personal amount, CPP, EI | − $780 | − $2,018 | Ontario +$1,238 |
| Ontario surtax | $0 | $0 | ±0 |
| Less low-income credits | − $518 | -$0 | Alberta +$518 |
| Ontario Health Premium | $450 | $0 | Ontario +$450 |
| Provincial income tax | $1,153 | $1,153 | same |
Your next dollar in each province
On a $1,000 raise from $40,000 you would keep $699 in Ontario and $721 in Alberta.
Ontario
30.1%
true marginal · bracket rate 19.1% (14% federal + 5.05% 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; Ontario's LIFT credit shrinks by 5% of each dollar above $32,500.
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 Ontario and Alberta on the same salary, checked every $100 from $0 to $500,000.
- Up to $20,200, take-home is identical: credits cancel all provincial tax in both.
- From $20,200 to $28,500, Alberta keeps more — up to $251 a year (at $24,400).
- From $28,500 to $40,100, Ontario keeps more — up to $309 a year (at $32,800).
- From $40,100 up, Alberta keeps more — $25,177 a year by $500,000, and still growing.
What sets each province apart
The 2026 rules behind the numbers above.
Ontario
- 5 brackets, from 5.05% up to 13.16% above $220,000. The $150,000 and $220,000 thresholds are never indexed, so more earners reach them each year.
- A surtax on top: 20% of Ontario tax above $5,818, plus another 36% above $7,446 — it starts at about $98,600 of income and steps up at about $115,100.
- The Ontario Health Premium: up to $900 a year, in steps from $20,000 of taxable income; the schedule is not indexed.
- A basic personal amount of $12,989, credited at 5.05% — worth $656. On low incomes the Ontario tax reduction and the LIFT credit (up to $875) cancel Ontario tax; LIFT shrinks by 5% of income above $32,500.
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.