Alberta vs BC Business Cost Calculator
Compare the day-to-day cost of operating a business in Alberta versus British Columbia for 2026. Alberta charges no provincial sales tax (PST) and no Employer Health Tax (EHT), while British Columbia adds a 7% PST on most purchases and an EHT on payroll above $1,000,000. Both provinces tax small business corporate income at the same 11% combined rate. Enter your typical payroll, annual purchases subject to PST, and business profit to see a side-by-side estimate of provincial sales tax, employer health tax and corporate tax in each province. This calculator covers only the provincial taxes it models — it excludes commercial rent, wages and cost-of-living differences, municipal business licensing fees, WCB/workers' compensation premiums, and other operating costs that vary by location and industry, all of which can outweigh the tax difference shown here.
Estimate only for the 2026 tax year. Not tax, accounting or financial advice. Talk to RN Canada about your situation.
How it works
The calculator applies Alberta's and British Columbia's 2026 rules side by side to the same inputs: BC's 7% PST on entered taxable purchases (Alberta has none), each province's Employer Health Tax rules on entered payroll (Alberta has none, BC applies its $1,000,000 exemption and tiered rates), and the 11% combined small business corporate tax rate that applies equally in both provinces on the first $500,000 of active income.
What the result includes
Results show the estimated PST, Employer Health Tax and small business corporate tax for Alberta and British Columbia side by side, plus the total modelled tax difference between the two provinces on the entered figures.
Assumptions
Assumes a Canadian-controlled private corporation with active business income under the $500,000 small business limit, purchases fully subject to BC PST at the standard 7% rate, and payroll fully attributable to the province being compared. Commercial rent, wage-level differences, municipal licensing, WCB premiums and other non-tax operating costs are not modelled and should be compared separately.
Frequently asked questions
It depends on the business. Alberta has no PST and no Employer Health Tax, which lowers costs for purchase-heavy or high-payroll businesses. British Columbia has no equivalent flat advantage, but factors like commercial rent, wage levels and industry-specific costs can favour either province. This calculator compares only the provincial taxes it models, not the full cost of operating a business.
No. It compares only PST, Employer Health Tax and small business corporate tax between Alberta and British Columbia. Commercial rent, wage levels, municipal business licence fees, WCB premiums and other location-specific costs are not included and should be compared separately.
Alberta is the only province with no provincial sales tax; it relies on other revenue sources instead. British Columbia charges a 7% PST on most goods and some services, in addition to the 5% federal GST, giving BC a 12% combined sales tax where Alberta has only the 5% GST.
Yes. For 2026 both Alberta and British Columbia apply an 11% combined federal and provincial rate (9% federal + 2% provincial) on the first $500,000 of active business income for a Canadian-controlled private corporation.
British Columbia charges an Employer Health Tax on payroll above a $1,000,000 exemption, up to 1.95% of total payroll. Alberta levies no Employer Health Tax at all, which lowers the effective payroll cost for higher-payroll employers there.
Last reviewed: 2026-08-19. Sources: Government of British Columbia — Provincial Sales Tax (PST), Government of British Columbia — Employer Health Tax overview, Canada Revenue Agency — Small business deduction