Status: Received Royal Assent July 18, 2019
Ministry responsible: Treasury Board and Finance

Overview

The Job Creation Tax Cut (Alberta Corporate Tax Amendment) Act will help get Alberta back to work by reducing the tax burden on job creators.

The act will lower the corporate tax rate from 12% to 8% over the next 4 years. Alberta will be the most tax-competitive business jurisdiction within months and among the most attractive investment destinations in North America within a few years.

Key changes

The act:

  • reduced Alberta's corporate tax rate:
    • from 12% to 11% on July 1, 2019
    • from 11% to 10% on January 1, 2020
  • will further reduce the corporate tax rate by 1% each year until it reaches 8% in 2022
    • from 10% to 9% on January 1, 2021
    • from 9% to 8% on January 1, 2022
  • keeps the small business tax rate at its current, competitive level of 2%

Comparing jurisdictions

Alberta now has the lowest corporate tax rate in Canada:

  • 12% in British Columbia
  • 12% in Saskatchewan
  • 12% in Manitoba
  • 11.6% in Quebec
  • 11.5% in Ontario
  • 10% in Alberta

By 2022, Alberta’s combined federal-provincial business tax rate will be lower than that of 44 U.S. states.

Next steps

The act took effect on July 1, 2019. Learn more about Alberta’s corporate income tax.

News