The new eight per cent tax bracket was announced as part of Budget 2025 and applies to income up to $60,000 – down from the previous rate of 10 per cent. Most taxpayers will start to see the benefit of the tax cut with more money on their paycheques starting this month, when payroll withholdings are adjusted. Now Albertans will have more to spend on what matters most.
Individual taxpayers will save up to $750 in 2025, while two-income families will see savings of up to $1,500. Overall, this personal income tax cut is expected to save Albertans $1.2 billion in 2025, with savings rising to $1.4 billion in 2028. This gives Albertans greater freedom to spend, save or invest as they choose – not the government.
“We know times have been tight, and we’ve been working on ways to ease some of the pressure people are feeling right now. We promised to help with a cut to personal income taxes, and we delivered on that promise in Budget 2025 with a new eight per cent personal income tax bracket. Now Albertans will start to see that reflected in their paycheques as more money can go to the things that individuals and families think are important.”
“Albertans work hard and they deserve to keep more of what they earn. This tax cut delivers real relief now, right when families need it most. This tax cut reinforces Alberta’s position as the best place in Canada to live, work and raise a family.”
“Helping Albertans keep more of their hard-earned money will have an immediate impact on affordability in this province. With this step, we are empowering Albertans to make the best financial decisions to meet their needs and support their families.”
With low personal and corporate income taxes, low fuel tax and no sales tax, Albertans pay considerably less in overall taxes than those in other provinces. In 2025-26, Albertans and Alberta businesses would pay at least $20.1 billion less in taxes than they would if Alberta had the same tax system as any other province.
“Hard-working Albertans deserve this tax cut and it's great to see it happen. Keeping promises really matters and it's great that hard-working taxpayers will be saving money on their paycheques in Alberta.”
Lower taxes, less pressure and more freedom – that’s what the eight per cent tax bracket delivers for Alberta families. This tax cut is a clear example of how Alberta leads the nation. Alberta is growing its economy, balancing the books, and putting real money back in the hands of the people who earned it.
Related information
Related news
- Budget 2025: Snip. Taxes cut for Albertans (Feb. 28, 2025)