Does Changing Provinces Save You Money in Retirement?
- Jordan Defazio
- 4 hours ago
- 4 min read
Are you planning to pack up all your things and retire to a different province?
Many Canadians assume moving provinces in retirement will automatically lower their cost of living but often it simply changes where the costs appear.
There is no single "best" province to retire in Canada based on tax alone because it depends on your income, lifestyle, and how your retirement income is structured.
Below are several financial factors you should consider before deciding that a move will save you money.
1. My Housing Costs Might Drop But Property Taxes Can Rise
Maybe you’re thinking of selling your house to downsize and grow your savings?
Housing is often the biggest motivation behind relocating.
However, you might have forgotten to include the hidden costs such as:
Property tax rates
Condo or strata fees
Insurance premiums
Maintenance costs depending on climate
Don’t forget — a province with lower housing prices may offset your savings with higher property taxes or insurance costs.
That kind of trickiness can shrink your expected savings.
2. My Overall Taxes Can Be Lower but They Might Be Offset in HST/PST
Most retirees who change provinces don’t budget the changes in local taxes.
That difference in not planning can affect your everyday spending on:
Vehicles
Appliances
Travel services
Home renovations
Professional services
Some of the provinces with the highest taxes include 1:
1. Quebec
Combined sales tax close to 15% (GST + QST)
Often considered one of the highest-tax provinces overall
Provincial income tax starts around 14% and rises to 25.75%
2. Nova Scotia
Also has 15% HST, raising overall consumption taxes
Top provincial income tax rate about 21%, among the highest in Canada
3. Newfoundland and Labrador
Combined sales tax around 15% HST
Top provincial income tax can exceed 21%
Some of the provinces with the lowest include:
1. Alberta
Often ranked the most tax-friendly province
No provincial sales tax, only the 5% federal GST
Provincial tax roughly 8%–15% depending on income brackets
2. Saskatchewan
Moderate provincial income tax (roughly 10.5%–14.5%)
Lower overall tax burden compared with many provinces
3. British Columbia
PST exists but income taxes can be relatively moderate
Lower provincial tax rates for lower and middle income levels
Over time, these costs can hack away at your savings.
3. Provincial Income Taxes Affect Retirement Income
Even though retirement benefits like CPP and OAS are federal, the income tax applied to them varies by province.
This means:
Tax credits for seniors vary by province
RRSP or RRIF withdrawals may be taxed differently
Pension income can push retirees into different tax brackets depending on the province
A retiree moving provinces may find their after-tax retirement income changes even though their investments and pensions remain the same.
4. Healthcare Access and Supplemental Costs
Healthcare coverage is publicly funded in Canada, but the details differ by province.
Some differences include:
Coverage levels for certain services
Waiting periods when you first move
Access to specialists or medical facilities
In some areas, retirees may also need to budget for additional travel or private services if access to care is more limited.
5. Insurance Costs Can Vary Widely
Insurance premiums are heavily influenced by what province you’re living in.
Moving provinces can affect the costs of your:
Auto insurance
Home insurance
Flood or wildfire coverage
Long-term care insurance availability
Some provinces also have higher exposure to certain risks (wildfires, floods, storms), which can increase premiums.
6. Distance From Family Can Add Hidden Travel Costs
This might be the most important one yet.
Because family is often a major part of your retirement and the distance from your family can introduce new expenses.
These may include:
Holiday travel
Increased travel insurance costs
Hotels or short-term accommodations
Flights to visit children or grandchildren
Over a long retirement, these trips can become a meaningful line item in the budget.
The Bottom Line
Moving provinces can absolutely improve a retiree’s financial position but only when the entire financial picture is evaluated.
Housing costs, taxes, insurance, healthcare access, and travel expenses all interact in ways that can reshape a retirement plan.
Before relocating, retirees should review how the move affects their tax strategy, income withdrawals, and long-term spending assumptions.
At PKAG we can give you a second opinion on your plan.
Feel free to contact us with any questions you might have.
You can also book a meeting with us and we can go over it in person.
We also have free, no-obligation seminars where we'll discuss the tax implications on your retirement plans and answer any questions you might have.
We look forward to hearing from you.
Sources:
This commentary is intended to provide general information and should not be construed as tax, legal, financial, or other advice. Individual circumstances and current events are critical to sound planning; anyone wishing to act on the information presented should consult with his or her tax, legal or financial advisor.
This information, including any opinion, is based on various sources believed to be reliable, but its accuracy cannot be guaranteed and is subject to change.
David Popowich, Faisal Karmali, Leanna Wachniak, Robert Gerrie are Investment Advisors with CIBC Wood Gundy in Calgary. The views of David Popowich, Faisal Karmali, Leanna Wachniak, Robert Gerrie do not necessarily reflect those of CIBC World Markets Inc.
CIBC Private Wealth consists of services provided by CIBC and certain of its subsidiaries, including CIBC Wood Gundy, a division of CIBC World Markets Inc.
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