Download: 2018-19 Second Quarter Fiscal Update and Economic Statement 
Published November 30, 2018 (PDF, 1 MB)

See below for highlights from the publication.

Forecast

The 2018-19 second quarter forecast is for total revenue of $49.6 billion, $1.7 billion higher than estimated in the budget.

Table 1: 2018-19 Revenue (millions of dollars)

Revenue Sources 2017-18
Actual
2018-19
Budget
2018-19
Forecast
Change from
Budget
Income and other Taxes 20,761 22,899 23,202 303
Non-renewable resource revenue 4,980 3,829 5,322 1,493
Transfers from Government
of Canada
7,606 8,218 8,245 27
Investment income 3,126 2,884 2,619 (265)
Net income from
government business enterprises
3,387 2,777 2,897 120
Premiums, fees and licenses 3,839 3,854 3,871 17
Other 3,595 3,419 3,449 30
Total revenue 47,295 47,879 49,605 1,726
Source: Government of Alberta

Non-renewable resource revenue

The resource revenue forecast has increased from budget, mainly from higher oil prices and a lower US-Canadian dollar exchange rate.

Non-renewable resource revenue is forecast at $5.3 billion in 2018-19, an increase of $1.5 billion from budget.

Table 2: Non-renewable resource revenue (millions of dollars)

Resource revenue sources 2017-18
Actual
2018-19
Budget
2018-19
Forecast
Change from
Budget
Bitumen royalty 2,643 1,785 2,787 1,002
Crude oil royalty 965 1,053 1,318 265
Natural gas & by-products royalty 645 541 718 177
Bonuses & sales of Crown leases;
Rentals & fees / coal royalty
728 450 498 48
Total resource revenue 4,980 3,829 5,322 1,493
Source: Government of Alberta

Carbon pricing revenue

The Climate Leadership Plan places an economy-wide price on carbon emissions through a carbon levy on heating and transportation fuels, and performance standards on large industrial emitters.

Revenue from the carbon levy and large industrial emitters will be invested in efforts to create opportunities to diversify Alberta's economy and to help households, businesses and communities save energy, reduce emissions and adjust to the carbon levy.

The carbon levy is estimated to raise $1.34 billion in 2018-19.

Even with the carbon levy, Alberta will have the third lowest provincial taxes/levies on gasoline and diesel in 2018, after Saskatchewan and Manitoba.

Income taxes

Corporate income taxes

Alberta's small business corporate income tax rate was reduced from 3% to 2% effective January 1, 2017, as part of the Climate Leadership Plan to help businesses adjust to the carbon price.

The tax relief to small business owners is worth an estimated $195 million in 2018-19.

Alberta is tied for the second-lowest small business corporate income tax rate among provinces and we continue to have the most competitive overall tax environment for small business owners.

When all taxes are taken into consideration, Alberta small business owners are better-off than they would be in other provinces.

Alberta's general corporate tax rate remains at 12%.

Personal income taxes

Alberta's tax system is indexed to inflation to ensure the value of tax credits is not eroded over time, and taxpayers are not pushed into higher tax brackets.

The basic personal and spousal amounts will increase 1.2% in 2018 to $18,915 - the highest among the provinces.

Indexing the personal income tax system is estimated to save Albertans $65 million in 2018.

Alberta's progressive, multi-rate income tax structure took effect in 2015.

Table 3: Income tax rates

Tax Rate 2017 Taxable Income Brackets 2018 Taxable Income Brackets
10% Up to $126,625 Up to $128,145
12% From $126, 625.01 to $151,950 From $128,145.01 to $153,773
13% From $151, 950.01 to $202,600 From $153,773.01 to $205,031
14% From $202,600.01 to $303,900 From $205,031.01 to $307,547
15% Above $303,900 Above $307,547
Source: Alberta Treasury Board and Finance
Note: Taxable income below the 10% bracket threshold is subject to the 10% tax rate ($126,625 in 2017 and $128,145 in 2018). Only incremental taxable income above that level is subject to higher taxes.

Alberta's tax advantage

Albertans will continue to pay the lowest overall taxes when compared to other provinces.

If Alberta had the same taxes and carbon charges as any other province, Albertans and Alberta businesses would pay at least $11.2 billion more in total taxes in 2018-19.

Chart 1: Alberta's Tax Advantage, 2018-19 (billions of dollars)

Source: Alberta Treasury Board and Finance

This graph shows the total additional provincial tax and carbon charges that individuals and businesses would pay 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 is assumed in 2019 for all provinces according to the federal government's carbon pricing plan. This comparison includes personal and corporate income tax, sales tax, fuel tax, carbon charges, tobacco tax, health premiums, payroll tax, liquor tax and markups, land transfer tax and other minor taxes.

Read the 2018-19 Second Quarter Fiscal Update and Economic Statement (PDF, 1 MB).