Alberta Tax Guide

Alberta Tax Brackets 2024

No Provincial Sales Tax

Alberta is one of the few provinces with no PST:

• Only pay 5% federal GST
• Compare to 13% HST in Ontario
• Saves thousands on major purchases
• Competitive advantage for businesses

Annual Savings Estimate

For a household spending $50,000/year on taxable goods:

• Alberta: $2,500 GST only
• Ontario: $6,500 HST
• Savings: $4,000/year

Key Alberta Tax Credits

Alberta Child and Family Benefit (ACFB)

Provincial benefit for families with children:

• Up to $1,469 per child under 18
• Additional amounts for children under 6
• Based on family net income
• Paid quarterly with CCB

Working Component

• Additional amount for working families
• Up to $734 for 1 child
• Up to $1,100 for 2+ children
• Requires employment income

Alberta Climate Leadership Adjustment

• Replaced by federal carbon rebate
• Alberta receives Climate Action Incentive
• Paid quarterly to offset carbon tax

Alberta Family Employment Tax Credit

• For working families with children
• Non-refundable credit
• Phases out at higher incomes

No Health Premium

Unlike Ontario and BC:

• No Alberta Health Care Insurance Premium
• Healthcare funded through general revenue
• Saves residents hundreds annually

Alberta Land Transfer Considerations

Alberta handles property differently:

• No land transfer tax like Ontario/BC
• Registration fee of approximately 0.02%
• Mortgage registration fee of approximately 0.01%
• Much lower than other provinces

Example Comparison (on $500,000 home)

• Alberta: ~$200 in fees
• Ontario: ~$6,475 land transfer tax
• BC: ~$8,000 property transfer tax

Alberta Carbon Tax

Federal carbon pricing applies:

• Currently $65 per tonne
• Included in fuel prices
• Climate Action Incentive rebate helps offset
• Alberta receives rural supplement

Business Tax Advantages

Corporate Income Tax

• General rate: 8% (lowest in Canada)
• Small business rate: 2%
• Small business limit: $500,000
• Combined with federal: 23% general, 11% small business

No PST on Business Inputs

• Equipment purchases tax-free (except GST)
• Office supplies without PST
• Significant savings for businesses

Alberta-Specific Tax Considerations

Oil & Gas Industry

• Flow-through shares common
• Specific deductions for energy sector
• Resource allowances

Agricultural Tax Benefits

• Farm property exemptions
• Livestock tax deferral
• Capital gains exemption for qualified farm property

Comparison to Other Provinces

Total Tax Burden (Income + Sales)

Tax Planning for Albertans

Maximize Federal Credits

• RRSP contributions (deduction at 10%+ provincial rate)
• TFSA for tax-free growth
• Claim all eligible deductions

Income Splitting

• Less valuable than high-tax provinces
• Still beneficial for federal tax
• Pension splitting at 65+

Investment Strategies

• Capital gains taxed at half inclusion rate
• Dividend tax credit calculations
• Consider provincial differences if relocating

Moving to Alberta

Tax considerations when relocating:

• Provincial residence determined on December 31
• Immediate PST savings on purchases
• Lower vehicle registration costs
• Consider timing of move for tax year