Following a year of strategic investments and strong fiscal management, Alberta’s government closed the 2025-26 fiscal year at a more than $2.2 billion surplus, posting this government’s fifth consecutive surplus year – with a sixth projected surplus on the way for 2026.

The Alberta Heritage Savings Trust Fund added to that foundation, reaching a record-breaking value of more than $32 billion by the 2025 fiscal year-end. Alberta’s government remains committed to retaining all income in the Heritage Fund and making strategic contributions to continue building on that success. This approach is keeping the fund right on track to reach the goal of $35 billion in 2027 – and $250 billion by 2050 – securing a bright future for Albertans.

“Five consecutive surpluses mean Alberta is on solid ground, and we’re on track for a sixth. This success reflects a province that works hard, builds big and plans for the long term. That’s why we will continue growing the Heritage Savings Trust Fund, creating more opportunity for young Albertans, opening doors for business growth and building stronger communities in every corner of our province.”

Danielle Smith, Premier

Impressive results across government made the difference with growing investment, stronger corporate profits increasing tax revenue, and higher non-renewable resource revenue driven primarily by the spike in oil prices in March. Alberta’s fiscal discipline also resulted in less in spending, helping deliver a $7.4-billion improvement from Budget 2025 and putting the province ahead at year-end.

“Alberta’s financial strength comes from disciplined decisions and a clear commitment to responsible government. We know oil prices can change in a day, and we will not mistake a good year for a guarantee. Instead, we’ll keep spending under control, growing our savings, cutting our debt and protecting the services Albertans count on.”

Jason Nixon, President of Treasury Board and Minister of Finance

Alberta’s government achieved this surplus while also cutting personal income taxes with the new eight per cent tax bracket introduced last year. This tax cut means Albertans benefited from having the lowest income tax bracket in the country, further strengthening Alberta’s unmatched tax advantage. By saving individuals up to $750 and families up to $1,500 annually, hard-working Albertans kept more of what they earned in 2025.

Alberta also remains one of Canada’s least indebted provinces in 2025, with significant improvements to net-debt and major decreases to debt servicing costs from the year before. Thanks to Alberta’s fiscal discipline, that means less money spent on interest for debt and more taxpayer dollars going towards the everyday programs and services families rely on.

Despite a shifting global economic landscape, Alberta’s economy remained resilient in 2025, with real GDP growing about 2.5 per cent, supported by strong energy production, public infrastructure investment and record housing starts. Employment grew 2.8 per cent, the fastest pace in Canada, while inflation eased to 2.0 per cent. Alberta’s population continued to grow faster than anywhere else in the country, as more people chose Alberta as the best place to live, work and raise a family.

Alberta’s government will continue to manage the risks of energy price volatility, global geopolitics, trade and economic uncertainty carefully. Alberta’s responsible financial management will continue to protect front-line services while supporting long-term economic growth and prosperity, to build a stronger Alberta today and for generations to come.

Quick facts

  • Alberta’s total revenue in 2025-26 was $79.8 billion, up $5.6 billion from the Budget 2025 forecast. Increases included:
    • $2.1 billion increase in investment income
    • $932 million increase in corporate taxes
    • $867 million increase in non-renewable resource revenues
  • The Heritage Fund earned $2.4 billion in net income in 2025-26, all of which was retained in the fund to grow over time.
    • Alberta’s government also invested another $2.8 billion last year from 2024-25 surplus cash.
  • Alberta’s government introduced a new eight per cent personal income tax bracket in 2025, saving individuals up to $750 and families up to $1,500 annually.
    • In 2025, more than 2.3 million Albertans benefited from the new tax bracket, producing total tax savings of more than $1.2 billion last year alone.
  • Total expense was $77.5 billion, with spending down $1.8 billion from Budget 2025.
  • Net debt as of March 31, 2026, was $33.6 billion, a decrease of $747 million from March 31, 2025.
    • Debt servicing costs were $2.9 billion, $30 million below budget and $277 million below 2024-25.
  • The 2026-27 Q2 update will be released by the end of November 2026.

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