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Personal income tax

Alberta's tax system supports low- and middle-income households while promoting opportunity and investment.

Services and information

Overview

Alberta has the highest basic personal and spousal tax amounts in Canada. 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.

For more information, see:

Personal income tax rates

In 2015, the government implemented a progressive personal income tax rate structure to help reduce our reliance on volatile non-renewable resource revenue and provide additional revenue to fund the public services and infrastructure that benefit Albertans. Rates are determined by income tax bracket:

Tax Rate Tax Bracket (2017) Tax Bracket (2018)
10% Up to $126,625 Up to $128,145
12% $126,625.01 to $151,950 $128,145.01 to$153,773
13% $151,950.01 to $202,600 $153,773.01 to $205,031
14% $202,600.01 to $303,900 $205,031.01 to $307,547
15% $303,900.01 and up $307,547.01 and up
Source: Treasury Board and Finance

Government to adjust Small Business Dividend Tax Credit rate in response to federal changes

Federal tax changes enacted in Bill C-74 adjusted factors that determine the provincial dividend tax credit rate for dividends paid out of corporate income that was taxed at the small business rate (non-eligible dividends). As a result, Alberta’s dividend tax credit rate will be adjusted to ensure that income earned in a small business and flowed out to shareholders continues to be taxed at a minimum of 10%, Alberta’s lowest personal income tax rate. For 2018, the dividend tax credit rate for non-eligible dividends will be 2.16% of the taxable amount of dividends.

The Canada Revenue Agency will administer the dividend tax credit on non-eligible dividends using this rate until the appropriate legislative amendments are passed.

Tax credits and rebates

For families with children

The Government of Alberta provides 2 refundable tax credit programs for families with children. Together, these programs are estimated to provide about $328 million to Alberta families in 2018-19:

Carbon levy rebate

  • To help lower- and middle-income households with the costs of the carbon levy, the Government of Alberta implemented the carbon levy rebate.
  • This rebate is part of the Climate Leadership Plan and is expected to provide a full or partial rebate to over 60% of Alberta households.
  • In 2018-19, it is estimated that $525 million in benefits will be provided to about 1.2 million households.

Alberta Investor Tax Credit

  • To support Alberta businesses, the Government of Alberta introduced the Alberta Investor Tax Credit (AITC), aimed at supporting jobs and economic diversification.
  • The AITC offers a 30% tax credit to investors who make equity investments in eligible Alberta businesses that undertake research, development, or commercialization of new technology, products, and processes.
  • It is also applicable to businesses engaged in interactive digital media development, video post-production, digital animation or tourism.
  • The credit will be extended until 2021-22 to continue supporting investment in non-traditional sectors.

If you have questions regarding eligibility or other details on the AITC:

Income tax credit indexing

Alberta’s personal income tax system is indexed to inflation to ensure that the value of tax credits is not eroded over time, and that taxpayers are not pushed into higher tax brackets. In 2018, the credit amounts increased by 1.2%.

Benefit amounts and phase-out thresholds for the Alberta Child Benefit and the Alberta Family Employment Tax Credit were also increased by 1.2% in 2018.

Personal income tax calculator

Use our personal income tax calculator to estimate your taxes.

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:

Contact

If you have questions about your own personal income taxes, or you are mailing a personal income tax return: