Overview
Alberta has the highest basic personal and spousal amounts among provinces. This means that Albertans are able to earn more before they have to start paying provincial income tax.
When all taxes are taken into consideration, Albertans across all income ranges generally pay lower overall taxes compared to other provinces.
New tax bracket
In 2025, thresholds and credit amounts will rise by 2%. Government is keeping its promise to lower income taxes for Albertans by introducing a new personal income tax bracket of 8% on the first $60,000 of income, effective January 1, 2025. People will begin to see this tax cut reflected on their July 2025 paycheques.
The new tax bracket will save individuals up to $750 in 2025. Taxpayers earning less than $60,000 will see their personal income taxes fall by 20%.
Table 1. 2024 and 2025 tax brackets.
| Tax rate | 2024 tax brackets | 2025 tax brackets |
|---|---|---|
| 8% | n/a | Up to $60,000 |
| 10% | Up to $148,269 | $60,000.01 to $151,234 |
| 12% | $148,269.01 to $177,922 | $151,234.01 to $181,481 |
| 13% | $177,922.01 to $237,230 | $181,481.01 to $241,974 |
| 14% | $237,230.01 to $355,845 | $241,974.01 to $362,961 |
| 15% | $355,845.01 and up | $362,961.01 and up |
Alberta Child and Family Benefit
The Alberta Child and Family Benefit (ACFB) provides direct financial assistance to lower-income Alberta families with children, with amounts increasing based on the number of children in the family (to a maximum of 4 children). The benefit is distributed quarterly with payments in August, November, February and May.
Commonly used forms
Alberta's personal income tax system is administered by the Canada Revenue Agency (CRA). The following forms are commonly used and are available from the CRA:
- current federal and provincial Form TD1 and worksheets
- general income tax package and benefit packages by year
Contact
If you have questions about your own personal income taxes, or you are mailing a personal income tax return:
- contact the Canada Revenue Agency (CRA)
- visit CRA’s Get ready to do your taxes page