Btakes home $19,648 more per year
$1,637 per month · same gross — the difference is all deductions
Line by line
Amounts per year. Green deltas favour B, red favour A.
| Line item | A · Ontario | B · Alberta | B − A |
|---|---|---|---|
| Income | |||
| Gross income | $400,000 | $400,000 | ±0 |
| Taxable incomeafter the CPP enhanced deduction | $398,873 | $398,873 | ±0 |
| Payroll programs | |||
| CPP + CPP2 | $4,646 | $4,646 | ±0 |
| EI premium | $1,123 | $1,123 | ±0 |
| Income tax | |||
| Federal taxafter credits | $102,668 | $102,668 | ±0 |
| Provincial taxafter credits | $43,525 | $45,307 | +$1,782 |
| Ontario surtaxa tax on Ontario tax | $20,530 | — | −$20,530 |
| Ontario health premium | $900 | — | −$900 |
| Bottom line | |||
| Total deductions | $173,393 | $153,745 | −$19,648 |
| Take-home | $226,607 | $246,255 | +$19,648 |
| Effective deduction rateshare of gross lost to tax, CPP and EI | 43.4% | 38.4% | −4.9 pts |
| True marginal rateon the next $100 | 53.5% | 48.0% | −5.5 pts |
Download comparison (PDF)This ledger, then a full statement for A and for B.
A — $400,000 in Ontario
Keeps $465 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 — $400,000 in Alberta
Keeps $520 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.
Where the $19,648 comes from at $400,000
Federal tax ($102,668), CPP and EI ($5,770) are identical in both provinces — they depend only on your income.
So the whole difference is provincial tax: $64,955 in Ontario against $45,307 in Alberta.
The lines that differ most: Ontario's surtax adds $20,530; Alberta's brackets charge $3,085 more on the same $398,873 of taxable income (8% up to 15%, against 5.05% up to 13.16% in Ontario); and Alberta's credits are worth $1,303 more — mostly the basic personal amount, $22,769 at 8% against $12,989 at 5.05%.
| Provincial tax | Ontario | Alberta | Pays more |
|---|---|---|---|
| Tax on the brackets | $44,416 | $47,500 | Alberta +$3,085 |
| Less credits: basic personal amount, CPP, EI | − $890 | − $2,193 | Ontario +$1,303 |
| Ontario surtax | $20,530 | $0 | Ontario +$20,530 |
| Ontario Health Premium | $900 | $0 | Ontario +$900 |
| Provincial income tax | $64,955 | $45,307 | Alberta +$19,648 |
Your next dollar in each province
On a $1,000 raise from $400,000 you would keep $465 in Ontario and $520 in Alberta.
Ontario
53.5%
true marginal · bracket rate 46.2% (33% federal + 13.16% provincial)
Higher than the bracket rate because Ontario's surtax adds 56% on top of the Ontario tax on each new dollar.
Alberta
48.0%
true marginal · bracket rate 48.0% (33% federal + 15% provincial)
Nothing beyond the two bracket rates acts on the next dollar here.
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.