Alberta tax overview

A summary of Alberta taxes, levies and related programs and links to publications, forms and resources.


Alberta's tax system is competitive, fair and efficient. For more information, see:

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%.

Source: Treasury Board and Finance
Tax Rate2023 Tax Brackets2024 Tax Brackets
10%Up to $142,292Up 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 rateTax rate
July 1, 201512%
July 1, 201911%
January 1, 202010%
July 1, 20208%

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)OutcomeFuel tax rate
$90 or moreFuel tax collection paused0 cents/litre
$85 to $89.99Fuel tax reinstated partially4.5 cents/litre
$80 to $84.99Fuel tax reinstated partially9 cents/litre
$79.99 or lessFuel tax reinstated in full13 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 productTax rates prior to March 1, 2024Tax rates as of March 1, 2024
Cigarettes27.5 cents per cigarette or tobacco stick30 cents per cigarette or tobacco stick
Loose tobacco41.25 cents per gram41.25 cents per gram
Smokeless tobacco27.5 cents per gram35 cents per gram
Cigars142% 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 premiumTax rate
Life, accident and sickness insurance3%
Other insurance4%

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.


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)

Contact Alberta Tax and Revenue Administration