Carbon levy repeal

Bill 1, An Act to Repeal the Carbon Tax, received Royal Assent on June 4, 2019. The carbon levy no longer applies to any type of fuel as of the beginning of the day on May 30, 2019. Fuel sellers are expected to comply with the changes set out in the Bill.

See Carbon levy – Information for fuel sellers and Carbon levy – Information for consumers for more information.

Contact Canada Revenue Agency (CRA) if you have questions related to the federal fuel charge under the Greenhouse Gas Pollution Pricing Act (Canada).

Corporate income tax rate reduction

Bill 3, Job Creation Tax Cut (Alberta Corporate Tax Amendment) Act, received Royal Assent on June 28, 2019. The general income tax rate on businesses will be reduced from 12% to 8% over 4 years. The small business tax rate will remain at 2%. For more information, see Special Notice Vol. 5 No. 52 – Job Creation Tax Cut.

Overview as of March 2018

Alberta’s tax advantage is an estimate of the total additional provincial taxes and carbon charges that individuals and businesses would pay if Alberta had the same tax system and carbon charges as other provinces.

As of March 9, 2018, if Alberta had the same taxes and carbon charges as any other province, Albertans and Alberta businesses would have paid at least $11.2 billion more in total taxes in 2018-19.

For more information, see the Government of Alberta 2018-21 Fiscal Plan (Tax Plan chapter) (PDF, 2.4 MB).

Alberta tax advantage chart

Albertans across all income ranges continue to pay the lowest overall taxes when compared to other provinces.

Figure 1: Alberta's tax advantage, 2018-19 (billions of dollars)

Breakdown of taxes across Canada
Source: Alberta Treasury Board and Finance

This graph shows the total additional provincial tax and carbon charges that individuals and businesses would have paid if Alberta had the same tax system and carbon charges as other provinces. This information reflects tax rates for other provinces known as of March 9, 2018.

A minimum carbon charge of $20/tonne was assumed in 2019 for all provinces according to the federal government's carbon pricing plan. This comparison included:

  • personal and corporate income tax
  • sales tax
  • fuel tax
  • carbon charges
  • tobacco tax
  • health premiums
  • payroll tax
  • liquor tax and markups
  • land transfer tax
  • other minor taxes

Interprovincial tax comparison

From the Government of Alberta 2018-21 Fiscal Plan (Tax Plan chapter) (PDF, 2.4 MB).