Personal Income Tax - Income Tax Credit Indexing
Income Tax Credit Indexing for 2017
Albertans will see an increase in provincial tax credit amounts for 2017 as a result of annual indexing of the tax system for inflation.
Alberta’s personal income tax system is indexed to inflation to ensure that the value of tax credits is not eroded over time, and that taxpayers are not pushed into higher tax brackets. In 2017, the credit amounts will increase by 1.3 per cent. This change reflects Alberta’s rate of inflation over the past year, as measured by the Consumer Price Index.
Albertans will continue to benefit from the highest basic and spousal tax credit amounts in Canada. Basic and spousal amounts will increase from $18,451 in 2016 to $18,690 in 2017. Other personal tax credits that will increase by 1.3 per cent to offset inflation include credits for pensioners, caregivers and disability amounts.
Both the Alberta Child Benefit and the Alberta Family Employment Tax Credit, refundable credits for families with lower to middle incomes, will also increase by 1.3 per cent to reflect inflation.