Download: 2018-19 Second Quarter Fiscal Update and Economic Statement
Published November 30, 2018 (PDF, 1 MB)
See below for highlights from the publication.
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)
|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
|Net income from
government business enterprises
|Premiums, fees and licenses||3,839||3,854||3,871||17|
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
|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
|Total resource revenue||4,980||3,829||5,322||1,493|
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.
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|
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)
Read the 2018-19 Second Quarter Fiscal Update and Economic Statement (PDF, 1 MB).