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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’s government is indexing the personal income tax system for inflation, beginning for the 2022 tax year. Tax bracket thresholds and credit amounts will increase by 2.3% over their 2021 value.
Many Albertans will first see the benefit of indexation through lower tax withholdings on their first paycheques of 2023. In addition, since indexation will resume for 2022, Albertans will receive larger refunds or owe less tax when they file their 2022 tax returns in spring 2023.
The measure was announced in the 2022-23 First Quarter Fiscal Update on August 31.
Tax rates are based on the following income tax brackets:
| Tax Rate | 2022 Tax Brackets (Indexed) | 2021 Tax Brackets |
|---|---|---|
| 10% | Up to $134,238 | Up to $131,220 |
| 12% | $134,238.01 to $161,086 | $131,220.01 to $157,464 |
| 13% | $161,086.01 to $214,781 | $157,464.01 to $209,952 |
| 14% | $214,781.01 to $322,171 | $209,952.01 to $314,928 |
| 15% | $322,171.01 and up | $314,928.01 and up |
Source: Treasury Board and Finance
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 four 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
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