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Overview
Alberta's tax system is competitive, fair and efficient. For more information, see:
In December 2023, the Alberta Taxpayer Protection Amendment Act, 2023, amended the Alberta Taxpayer Protection Act to prohibit the government from increasing personal or corporate income tax rates without Albertans’ approval through a referendum. It also prohibits reducing personal income tax bracket thresholds and basic personal, spousal and equivalent-to-spouse credit amounts without a referendum.
Alberta’s tax advantage is clear – Albertans and Alberta businesses currently pay the lowest overall taxes in the country. It’s important we do everything that we can to protect it, read more in the news release, Protecting Albertans against future tax hikes.
Personal income tax
Alberta's personal income tax is collected by the Canada Revenue Agency at the same time federal income tax is collected.
Personal income tax rates
Albertans pay low personal income taxes. This advantage stems from high personal and spousal amounts and high tax bracket thresholds that do not start until taxable income exceeds $148,269. In addition, Alberta continues to index income tax brackets and tax credit amounts, saving Albertans an estimated $680 million in 2023-24 and $980 million in 2024-25. In 2024, thresholds and credit amounts will rise by 4.2%.
| Tax Rate | 2023 Tax Brackets | 2024 Tax Brackets |
|---|---|---|
| 10% | Up to $142,292 | Up to $148,269 |
| 12% | $142,292.01 to $170,751 | $148,269.01 to $177,922 |
| 13% | $170,751.01 to $227,668 | $177,922.01 to $237,230 |
| 14% | $227,668.01 to $341,502 | $237,230.01 to $355,845 |
| 15% | $341,502.01 and up | $355,845.01 and up |
To build on Alberta’s already strong personal tax advantage, Alberta’s government intends to introduce a new personal income tax bracket of 8% on the first $60,000 of income. Based on the current fiscal plan, the government expects to implement the tax cut over 2 years.
In 2026, a new 9% bracket will be introduced for income up to $60,000. The rate on this bracket will then be reduced to 8% in 2027. Taxpayers will save up to $760 a year once the tax cut is fully implemented.
More information on personal income tax
For more information, see personal income tax.
Questions about your personal income tax should be directed to the Canada Revenue Agency.
Corporate income tax
Corporations doing business in Alberta are generally required to pay Alberta corporate income tax and file a corporate income tax return with Alberta Tax and Revenue Administration.
Corporate income tax rates
Alberta’s general corporate income tax rate is currently 8%, the lowest among Canadian provinces. Alberta's small business tax rate is 2% (see current and historical corporate income tax rates).
| General corporate income tax rate | Tax rate |
|---|---|
| July 1, 2015 | 12% |
| July 1, 2019 | 11% |
| January 1, 2020 | 10% |
| July 1, 2020 | 8% |
Innovation Employment Grant
The Innovation Employment Grant (IEG) promotes economic growth by providing eligible businesses with a grant worth up to 20% of their qualifying R&D expenditures. The program launched on January 1, 2021.
For more information, see Innovation Employment Grant.
For more detailed information for businesses interested in applying for the IEG, see: Corporate tax credit information.
Agri-Processing Investment Tax Credit
The Agri-Processing Investment Tax Credit (APITC) is a strategic initiative that builds on Alberta’s strong agriculture roots to further strengthen our competitive advantage in the agri-food sector and help create more jobs for Albertans.
The APITC helps Alberta attract large investments in the agri-processing sector by offering a 12% non-refundable tax credit to corporations investing more than $10 million to build new facilities or expand their operations in Alberta. Corporations may carry forward unused credits for 10 years.
For more information, see Agri-Processing Investment Tax Credit.
More information on corporate income tax
See the following information from Alberta Tax and Revenue Administration:
Fuel tax
Alberta’s fuel tax applies to purchases of fuel, including gasoline, diesel, propane (for motive purposes), aviation fuel, locomotive fuel and renewable fuels.
Fuel tax relief program
Alberta’s fuel tax relief program saves Albertans some or all of the provincial fuel tax on gasoline and diesel when oil prices are high. Fuel tax rates are adjusted quarterly based on the average price of a barrel of West Texas Intermediate (WTI) oil:
| WTI price (avg/bbl) | Outcome | Fuel tax rate |
|---|---|---|
| $90 or more | Fuel tax collection paused | 0 cents/litre |
| $85 to $89.99 | Fuel tax reinstated partially | 4.5 cents/litre |
| $80 to $84.99 | Fuel tax reinstated partially | 9 cents/litre |
| $79.99 or less | Fuel tax reinstated in full | 13 cents/litre |
The oil price average is based on the 20 trading days of WTI price data leading up to the 15th of the month preceding the start of the next quarter. Program rules prevent the fuel tax rate from increasing more than nine cents per litre each quarter.
Learn more about Alberta’s fuel tax relief.
Fuel tax rates
See current and historical fuel tax rates on different types of fuel.
More information on fuel tax
See the following information from Alberta Tax and Revenue Administration:
Related programs
The Tax Exempt Fuel User (TEFU) and Alberta Farm Fuel Benefit (AFFB) programs provide tax exemptions of nine cents per litre on the purchase of marked gasoline and marked diesel used for qualifying purposes.
The International Fuel Tax Agreement (IFTA) is an agreement among American and Canadian jurisdictions that enables uniform collection and distribution of fuel taxes paid by motor carriers traveling in several jurisdictions. IFTA membership allows the carrier to significantly reduce the paperwork and compliance burden for fuel tax reporting.
Tobacco tax
Alberta’s tobacco tax applies to all tobacco purchased in the province, including cigarettes, smokeless tobacco, loose tobacco and cigars.
Tobacco tax rates
See current and historical tobacco tax rates on different types of tobacco.
Discouraging tobacco use
In an effort to further deter tobacco use among Albertans, Alberta’s government is increasing tax rates on cigarettes and smokeless tobacco. Effective March 1, 2024, the tax on cigarettes will increase by 2.5 cents to 30 cents per cigarette and the tax on smokeless tobacco will rise by 7.5 cents to 35 cents per gram. With these increases, Alberta’s tobacco tax rates on cigarettes and smokeless tobacco will be comparable to tobacco tax rates in neighbouring provinces.
| Tobacco product | Tax rates prior to March 1, 2024 | Tax rates as of March 1, 2024 |
|---|---|---|
| Cigarettes | 27.5 cents per cigarette or tobacco stick | 30 cents per cigarette or tobacco stick |
| Loose tobacco | 41.25 cents per gram | 41.25 cents per gram |
| Smokeless tobacco | 27.5 cents per gram | 35 cents per gram |
| Cigars | 142% of the taxable price of the cigar (minimum tax per cigar of 27.5 cents and a maximum of $8.61) | 142% of the taxable price of the cigar (minimum tax per cigar of 27.5 cents and a maximum of $8.61) |
More information on tobacco tax
See the following information from Alberta Tax and Revenue Administration:
Tourism levy
The tourism levy is charged on most types of temporary accommodation in Alberta.
Tourism levy rate
The tourism levy rate is 4% on the purchase price (see current and historical tourism levy rates).
More information on the tourism levy
See the following information from Alberta Tax and Revenue Administration:
Education property tax
All property owners in Alberta (with some exceptions, such as non-profit organizations and seniors' lodge facilities) are required to pay the education property tax, based on the property’s assessment value and an equalized assessment process.
This tax revenue is pooled into the Alberta School Foundation Fund. It is then distributed among Alberta's public and separate school boards on an equal per-student basis.
Freezing education property tax rates
For 2024-25, education property tax rates will be frozen at $2.56/$1,000 for residential/farmland property and $3.76/$1,000 for non-residential property. The education property tax provides Alberta's education system with a stable and sustainable source of revenue. The tax supports all public and separate school students and helps pay for basic instruction costs, including teacher salaries, textbooks and other classroom resources.
More information on the education property tax
See more information from Alberta Municipal Affairs:
Freehold mineral rights tax
The freehold mineral rights tax is:
- an annual tax on petroleum and natural gas mineral rights within provincial boundaries, not owned by the Government of Alberta
- assessed on revenue derived from production from freehold oil and gas properties
- assessed annually based on calendar year production
- levied on each owner of a petroleum or natural gas mineral right as shown on the estate fee simple Certificate of Title
More information on the freehold mineral rights tax
See more information from Alberta Energy and Minerals:
Insurance premiums tax
The insurance premiums tax is payable by insurers on premiums receivable on contracts of life, accident, sickness and all other contracts of insurance transacted in Alberta during a year.
Insurance premiums tax rates
| Insurance premium | Tax rate |
|---|---|
| Life, accident and sickness insurance | 3% |
| Other insurance | 4% |
More information on the insurance premiums tax
See the following information from Alberta Tax and Revenue Administration:
Other programs
Emergency 911 levy
Wireless subscribers, such as cell phone users, must pay a monthly 911 levy of $0.95 on each of their active wireless devices that has a phone number with an Alberta area code. The money generated by the 911 levy, after administrative costs, goes to 911 call centres in Alberta to help them provide services and maintain their systems.
See more information from Alberta Tax and Revenue Administration, which administers this program on behalf of Alberta Municipal Affairs:
Health cost recovery
Under the Health Cost Recovery program, automobile insurers remit an amount for each calendar year representing their share of the total estimated Crown cost of those health services.
See more information from Alberta Tax and Revenue Administration, which administers this program on behalf of Alberta Health:
Alberta Indian Tax Exemption (AITE)
The Government of Alberta recognizes that many First Nations people and communities in the province prefer not to describe themselves as Indians/Indian bands. These terms have been used where necessary to reflect their legal meaning in the federal Indian Act.
Eligible consumers are exempt from payment of Alberta taxes on fuel and tobacco purchased as personal property on reserve in Alberta. The exemption can only be provided to eligible Indian consumers by retailers registered with Alberta Tax and Revenue Administration.
As of October 4, 2021, the only accepted proof of eligibility for tax-exempt purchases made on reserve in Alberta will be the federal Certificate of Indian Status card (status card) or Temporary Confirmation of Registration document. Any version of the status card will be accepted, including expired cards. AITE retailers will no longer accept the AITE card as of October 4, 2021.
See more information from Alberta Tax and Revenue Administration:
Tax credits, benefits and exemptions
See the Tax credits, benefits and exemptions page.
Contact
Personal income tax
Contact the Canada Revenue Agency or visit Get ready to do your taxes.
Education property tax
See the Education property tax page, and more information in the Property tax section.
Freehold mineral tax
See the Freehold mineral tax page.
All other tax and levy programs are administered by Alberta Tax and Revenue Administration
(Administrative questions on Alberta corporate income tax, fuel tax, tobacco tax, tourism levy and other programs)