Status: Bill 3 received Royal Assent July 18, 2019
Ministry responsible: Treasury Board and Finance

Overview

Bill 3: 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.

Bill 3 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

Bill 3:

  • reduced Alberta's corporate tax rate from 12% to 11% on July 1, 2019
  • will further reduce the corporate tax rate by 1% each year until it reaches 8% in 2022
    • from 11% to 10% on January 1, 2020
    • 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 has the lowest corporate tax rate in Canada after the first reduction on July 1, 2019:

  • 12% in British Columbia
  • 12% in Saskatchewan
  • 12% in Manitoba
  • 11.6% in Quebec
  • 11.5% in Ontario
  • 11% in Alberta

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

Next steps

Bill 3 took effect on July 1, 2019. Learn more about Alberta’s corporate income tax.

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