Overview
The Government of Alberta maintains a tax system that provides benefits to those who need them most, promotes opportunity and investment and is the most competitive overall among provinces. For more information, see:
- Alberta's tax advantage
- 2018-21 Tax Plan (released with Budget 2018) (PDF, 2.5 MB)
Personal income tax
Personal income tax is collected for the Government of Alberta by the Canada Revenue Agency, at the same time federal income tax is collected.
Personal income tax rates
The rates are based on income tax bracket (2018 tax year):
| Income | Income tax rate |
|---|---|
| Up to $128,145 | 10% |
| $128,145.01 to $153,773 | 12% |
| $153,773.01 to $205,031 | 13% |
| $205,031.01 to $307,547 | 14% |
| $307,547.01 and up | 15% |
Estimate your personal income tax
You can use our personal income tax calculator to estimate your taxes.
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 operating in Alberta are generally required to file an Alberta corporate income tax return with Alberta Tax and Revenue Administration in addition to filing a federal corporate income tax return with the Canada Revenue Agency.
Included as a part of the Alberta corporate income tax return are Alberta corporate income tax deductions and credits, such as the small business deduction, foreign investment income tax credit, political contributions tax credit and scientific research and experimental development (SR&ED) tax credit.
Corporate income tax rates
The rates are as follows (see current and historical rates for more details):
| Corporation type | Income tax rate |
|---|---|
| General corporate income tax rate | 12% |
| Small business tax rate | 2% |
More information on corporate income tax
See the following information from Alberta Tax and Revenue Administration:
Carbon levy
The carbon levy is generally charged on fossil fuels that emit greenhouse gas emissions when combusted, including gasoline, diesel and natural gas.
Carbon levy rates
In 2018, the levy is charged at a rate of $30 per tonne, which translates to the following (see the complete carbon levy rates table):
| Fuel type | Levy rate |
|---|---|
| Gasoline | 6.73 cents per litre |
| Diesel fuel | 8.03 cents per litre |
| Natural gas | $1.517 per gigajoule |
Estimate your carbon levy costs and rebate
For consumer information, and to estimate your carbon levy costs and rebate entitlement, see carbon levy and rebates.
Businesses remitting the levy
See the following information from Alberta Tax and Revenue Administration:
The Lloydminster Competitive Adjustment Grant provides eligible retail fuel dealers in the border City of Lloydminster with a grant that offsets the difference between the total carbon levy and fuel tax in Alberta and the fuel tax in Saskatchewan. For administrative information for retail fuel dealers, see the following 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 rates
The fuel tax rates are as follows (see current and historical fuel tax rates on different types of fuel):
| Fuel type | Tax rate |
|---|---|
| Gasoline | 13 cents per litre |
| Diesel | 13 cents per litre |
| Propane | 9.4 cents per litre |
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 tobacco tax is applied to all tobacco products purchased in Alberta, including cigarettes, loose tobacco and cigars.
Tobacco tax rates
The tobacco tax rates are as follows (see current and historical tobacco tax rates on different types of tobacco products):
| Tobacco product | Tax rate |
|---|---|
| Cigarettes | 25 cents per cigarette or tobacco stick |
| Loose tobacco | 37.5 cents per gram |
| Cigars | 129% of the taxable price of the cigar |
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:
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:
Tax credits
Together with Alberta Economic Development and Trade, Tax and Revenue Administration administers the Capital Investment Tax Credit (CITC), the Interactive Digital Media Tax Credit (IDMTC), and the corporate portions of the Alberta Investor Tax Credit (AITC) and the Community Economic Development Corporation Tax Credit (CEDCTC).
Questions regarding eligibility or other details on these credits should be directed to Alberta Economic Development and Trade at the email addresses below:
- Capital Investment Tax Credit: CITC.program@gov.ab.ca
- Interactive Digital Media Tax Credit: IDMTC.program@gov.ab.ca
- Alberta Investor Tax Credit : AITC.program@gov.ab.ca
- Community Economic Development Corporation Tax Credit: CEDC.program@gov.ab.ca
Other programs
Emergency 911 levy
Wireless subscribers, such as cell phone users, must pay a monthly 911 levy of $0.44 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 Indian consumers are exempt from payment of Alberta tax and levy on fuel and tobacco products purchased for their own use on reserves in Alberta. The exemption can only be provided to eligible Indian consumers by retailers registered with Alberta Tax and Revenue Administration.
See more information from Alberta Tax and Revenue Administration:
Contact
Personal income tax
Contact the Canada Revenue Agency or visit their “Get Ready” site
Education property tax
Contact Alberta Municipal Affairs
Freehold mineral tax
Tax credits
- Alberta Investor Tax Credit (AITC)
- Capital Investment Tax Credit (CITC)
- Community Economic Development Corporation Tax Credit (CEDCTC)
- Interactive Digital Media Tax Credit (IDMTC)
All other tax and levy programs administered by Alberta Tax and Revenue Administration
(Administrative questions on Alberta corporate income tax, carbon levy, fuel tax, tobacco tax, tourism levy and other programs)