Overview
Alberta's tax system is competitive, fair and efficient. For more information, see:
- Alberta Budget 2023 tax plan (PDF, 5.6 MB)
- Alberta's tax advantage
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
Indexing the personal income tax system
Alberta has resumed indexation of the provincial personal income tax system for inflation, beginning for the 2022 tax year. Tax bracket thresholds and credit amounts increased by 2.3% in 2022 and by 6% in 2023.
Many Albertans are now seeing lower tax withholdings on their paycheques. In addition, many Albertans will receive a refund or owe less tax when they file their 2022 tax returns in spring 2023.
Tax rates are based on the following income tax brackets:
| Tax Rate | 2021 Tax Brackets | 2022 Tax Brackets | 2023 Tax Brackets |
|---|---|---|---|
| 10% | Up to $131,220 | Up to $134,238 | Up to $142,292 |
| 12% | $131,220.01 to $157,464 | $134,238.01 to $161,086 | $142,292.01 to $170,751 |
| 13% | $157,464.01 to $209,952 | $161,086.01 to $214,781 | $170,751.01 to $227,668 |
| 14% | $209,952.01 to $314,928 | $214,781.01 to $322,171 | $227,668.01 to $341,502 |
| 15% | $314,928.01 and up | $322,171.01 and up | $341,502.01 and up |
Adoption expenses tax credit
To help with adoption-related expenses, the government offers a non-refundable personal income tax credit equal to 10% of eligible adoption expenses up to an annual maximum.
As part of Budget 2023 and the government’s broader strategy to ease the financial burden of adopting a child, the maximum allowable expenses for the credit will be increased to $18,210 for 2023.
Charitable donations tax credit
As of the 2023 tax year, the charitable donations tax credit rate on the first $200 of contributions will rise from 10% to 60%.
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. The rate was reduced from 12% by the Job Creation Tax Cut. 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
Alberta’s Recovery Plan introduced the Innovation Employment Grant (IEG), a program that helps create jobs for Albertans by supporting small and medium-sized businesses that invest in research and development (R&D).
The 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
Budget 2023 introduced the Agri-Processing Investment Tax Credit (APITC), 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 will help 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 on or after February 7, 2023. Corporations will be able to 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 is applied to purchases of fuel, including gasoline, diesel, propane (for motive purposes), aviation fuel, locomotive fuel and renewable fuels.
Fuel tax relief program
On January 1, 2023, Alberta paused the collection of provincial fuel tax on gasoline and diesel until at least June 30, 2023. The tax had been in place at a reduced rate, of 4.5 cents per litre, for the last quarter of 2022 through Alberta’s Fuel Tax Relief Program. Alberta drivers now save the full 13-cent provincial fuel tax every time they fill up their vehicle.
The Fuel Tax Relief Program delivers direct savings to Albertans and Alberta businesses on the following types of fuel:
- gasoline – 13 cents per litre
- diesel – 13 cents per litre
- marked gasoline and marked diesel – 4 cents per litre
After June 30, 2023, Albertans will continue to benefit from fuel tax relief in a staged approach based on the average price of West Texas Intermediate (WTI) crude oil. Tax rates start to be reduced once the average WTI price exceeds US$80, and are completely eliminated when the average price exceeds US$90. The next review of WTI crude oil prices will be conducted in mid-June for the quarter beginning July 1, 2023.
Learn more about Alberta’s fuel tax relief (PDF, 143 KB).
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 is applied 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.
| Tobacco product | Tax rate |
|---|---|
| Cigarettes | 27.5 cents per cigarette or tobacco stick |
| Loose tobacco | 41.25 cents per gram |
| Smokeless tobacco | 27.5 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) |
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.
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:
Credits, rebates 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)
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