Personal income tax overview and tax credits / rebates

Alberta's tax system supports low- and middle-income households while promoting opportunity and investment.

Overview

Alberta has the highest basic personal and spousal amounts in Canada, meaning that Albertans are able to earn more before they have to start paying provincial income tax (see Alberta's Non-Refundable Tax Credit Block).

When all taxes are taken into consideration, Albertans across all income ranges generally pay lower overall taxes compared to other provinces. For more information, see Alberta's Tax Advantage and the Interprovincial Tax Comparison.


Personal income tax rates

In 2015, the government implemented a progressive personal income tax rate structure to help reduce our reliance on volatile non-renewable resource revenue and provide additional revenue to fund the public services and infrastructure that benefit Albertans. Rates are determined by income tax bracket:

Tax Rate
Tax Bracket (2017)
Tax Bracket (2018)
10%
Up to $126,625 Up to $128,145
12%
$126,625.01 to $151,950 $128,145.01 to $153,773
13%
$151,950.01 to $202,600 $153,773.01 to $205,031
14%
$202,600.01 to $303,900 $205,031.01 to $307,547
15%
$303,900.01 and up $307,547.01 and up

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Tax credits and rebates

The Government of Alberta provides two generous refundable tax credit programs for families with children, the Alberta Child Benefit (ACB) and the Alberta Family Employment Tax Credit (AFETC). Together, these programs are estimated to provide about $328 million to Alberta families in 2018-19.

The Alberta Climate Leadership Adjustment Rebate helps lower- and middle-income households with the costs of the carbon levy. The rebate is part of the Climate Leadership Plan and is expected to provide a full or partial rebate to over 60% of Alberta households. In 2018-19, it is estimated that $525 million in benefits will be provided to about 1.2 million households.

To support Alberta businesses, government introduced the Alberta Investor Tax Credit (AITC), aimed at supporting jobs and economic diversification. The AITC offers a 30% tax credit to investors who make equity investments in eligible Alberta businesses that undertake research, development, or commercialization of new technology, products or processes. It is also applicable to businesses engaged in interactive digital media development, video post-production, digital animation or tourism. To continue supporting investment in non-traditional sectors, the credit will be extended until 2021-22.

If you have questions regarding eligibility or other details on the AITC:

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Income tax credit indexing

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 2018, the credit amounts increased by 1.2%.

Benefit amounts and phase-out thresholds for the Alberta Child Benefit and the Alberta Family Employment Tax Credit were also increased by 1.2% in 2018.

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Personal income tax calculator

Use our personal income tax calculator to:

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Commonly used forms

Alberta's personal income tax system is administered by the Canada Revenue Agency (CRA). See commonly used forms available from the CRA:

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Personal income tax contact information

If you have questions about your own personal income taxes, or you are mailing a personal income tax return:

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Page last updated:  March 22, 2018