Changes to some of these programs were implemented in Budget 2019: A plan for jobs and the economy. See Implementing Budget 2019.
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 Advantage
- Alberta's Non-Refundable Tax Credit Block and Interprovincial Tax Comparison from the 2019-23 Tax Plan (PDF, 7.5 MB)
Personal income tax rates
The rates are based on the following income tax brackets:
| Tax Rate | Tax Bracket (2018) | Tax Bracket (2019) |
|---|---|---|
| 10% | Up to $128,145 | Up to $131,220 |
| 12% | $128,145.01 to$153,773 | $131.220.01 to $157,464 |
| 13% | $153,773.01 to $205,031 | $157,464.01 to $209,952 |
| 14% | $205,031.01 to $307,547 | $209,952.01 to $314,928 |
| 15% | $307,547.01 and up | $314,928.01 and up |
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 and then again on January 1, 2022, corresponding with legislated reductions to the general corporate income tax rate. These adjustments will ensure that the combined corporate and personal income tax paid on dividend income approximately equals the individual’s personal tax rate.
Tax credits
For families with children
To focus benefits on Albertans most in need and to streamline administration, government will consolidate the Alberta Child Benefit and the Alberta Family Employment Tax Credit into a single program, the new Alberta Child and Family Benefit (ACFB), beginning in July 2020. The ACFB will focus dollars more effectively on families with lower incomes, with many lower income families receiving higher benefits than they did under the old programs. The ACFB will be non-taxable and will not affect eligibility for other benefit programs.
The Government of Alberta provides 2 refundable tax credit programs for families with children, which will continue until July 2020:
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” site