Personal income tax

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:

• Alberta's tax plan (PDF, 6 MB)
• Alberta's Non-Refundable Tax Credit Block and Interprovincial Tax Comparison from the 2021-24 Tax Plan (PDF, 6 MB)

Personal income tax rates

The rates are based on the following income tax brackets:

The dividend tax credit rate for dividends paid out of income taxed at the general corporate income tax rate (eligible dividends) will be adjusted on January 1, 2021, corresponding with the acceleration of the general corporate income tax rate reduction announced June 29, 2020 in Alberta’s Recovery Plan.

Child and family benefits

Beginning on July 1, 2020, the Alberta Child Benefit (ACB) and the Alberta Family Employment Tax Credit (AFETC) were consolidated into a single program, the Alberta Child and Family Benefit (ACFB), with the first payment issued in August 2020. The ACFB provides more benefits to lower-income families while streamlining administration.

Final payments for the ACB and AFETC programs have already been issued, although the Canada Revenue Agency (CRA) will continue to issue retroactive payments for previous benefit years, if applicable.

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