Updated government projections of revenue from taxes, non-renewable resources, federal transfers and investment income.
Provincial revenue is projected to be $47.9 billion in 2018-19, or 2.1% more than the 2017-18 forecast.
While this is still lower than revenues prior to the oil price collapse in 2014, revenue is expected to continue strengthening, surpassing $50 billion in 2019-20.
Table 1: Budget 2018 Revenue (millions of dollars)
|Revenue Sources||2016-17 Actual||2017-18 Actual *||2018-19 Estimate||2019-20 Target||2020-21 Target|
|Income and other Taxes||20,181||20,761||22,899||24,548||25,995|
|Non-renewable resource revenue||3,097||4,980||3,829||4,183||5,001|
|Transfers from Government
|Net income from
government business enterprises
|Premiums, fees and licenses||3,701||3,839||3,854||3,929||3,996|
Non-renewable resource revenue
Lower oil prices and their impact on the provincial economy continue to affect government revenue.
Revenue from non-renewable resources is forecast at $3.8 billion in 2018-19.
For more information, see the updated economic and energy price assumptions on the Economic outlook page.
Table 2: Non-renewable resource revenue (millions of dollars)
|Resource revenue sources||2016-17 Actual||2017-18 Actual *||2018-19 Estimate||2019-20 Target||2020-21 Target|
|Crude oil royalty||716||965||1,053||981||1,035|
|Natural gas & by-products royalty||520||645||541||590||585|
|Bonuses & sales of Crown leases||203||564||327||312||343|
|Rentals and fees
/ coal royalty
|Total resource revenue||3,097||4,980||3,829||4,183||5,001|
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.
Over the next 3 years, 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 $1.4 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.
Alberta maintains the lowest overall tax regime in Canada, with no provincial sales tax, health premium or payroll tax.
Albertans across all income ranges will continue to pay the lowest overall taxes when compared to other provinces.
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 will be 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)