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.
Personal income tax rates
Indexing the personal income tax system
Alberta has resumed indexation of the provincial personal income tax system for inflation, beginning for the 2022 tax year. Tax bracket thresholds and credit amounts increased by 2.3% in 2022 and by 6% in 2023.
Many Albertans are now seeing lower tax withholdings on their paycheques. In addition, many Albertans will receive a refund or owe less tax when they file their 2022 tax returns in spring 2023.
Tax rates are based on the following income tax brackets:
| Tax Rate | 2021 Tax Brackets | 2022 Tax Brackets | 2023 Tax Brackets |
|---|---|---|---|
| 10% | Up to $131,220 | Up to $134,238 | Up to $142,292 |
| 12% | $131,220.01 to $157,464 | $134,238.01 to $161,086 | $142,292.01 to $170,751 |
| 13% | $157,464.01 to $209,952 | $161,086.01 to $214,781 | $170,751.01 to $227,668 |
| 14% | $209,952.01 to $314,928 | $214,781.01 to $322,171 | $227,668.01 to $341,502 |
| 15% | $314,928.01 and up | $322,171.01 and up | $341,502.01 and up |
Child and family benefits
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.
The ACFB was indexed by 6% on January 1, 2023. Benefit amounts will rise by as much as $121 for families with one child, $198 for families with 2 children, $260 for families with 3 children and $307 for families with 4 or more children. Families will also benefit from the increase to phase‑out thresholds, as the maximum benefit begins to be reduced at a higher income level.
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
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