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Alberta Income Tax Rates 2026 | Tax Brackets Guide

Updated

Alberta Tax Brackets 2026

Provincial Tax Rates

Taxable Income Alberta Rate
Up to $148,269 10%
$148,270 - $177,922 12%
$177,923 - $237,230 13%
$237,231 - $355,845 14%
Over $355,845 15%

Combined Federal + Alberta Rates

Taxable Income Combined Rate
Up to $55,867 25.00%
$55,867 - $111,733 30.50%
$111,733 - $148,269 36.00%
$148,269 - $173,205 38.00%
$173,205 - $177,922 41.32%
$177,922 - $237,230 42.32%
$237,230 - $246,752 43.32%
$246,752 - $355,845 47.00%
Over $355,845 48.00%

Alberta Tax Advantage

Comparison to Other Provinces

Income Level Alberta Ontario BC
$50,000 ~$9,200 ~$7,900 ~$7,500
$100,000 ~$23,900 ~$24,900 ~$24,000
$150,000 ~$41,400 ~$45,400 ~$43,000
$200,000 ~$60,700 ~$70,100 ~$66,200

Note: Higher earners save significantly in Alberta.

No Provincial Sales Tax

Province Sales Tax
Alberta 5% (GST only)
Ontario 13% (HST)
BC 12% (GST + PST)
Quebec 14.975% (GST + QST)

Annual PST Savings

Annual Spending Alberta Savings
$30,000 ~$2,400
$50,000 ~$4,000
$75,000 ~$6,000

Alberta Tax Credits

Non-Refundable Credits

Credit 2026 Amount
Basic personal amount ~$21,885
Spouse/CLP amount ~$21,885
Age amount (65+) ~$6,064
Pension income ~$1,616
Disability ~$16,273

Alberta-Specific Credits

Credit Details
Alberta Family Employment Tax Credit Low/moderate income families
Alberta Child and Family Benefit Income-tested

Alberta Child and Family Benefit

Payment Amounts

Children Maximum
1 child ~$1,410/year
2 children ~$2,115/year
3 children ~$2,820/year
4+ children ~$3,525/year

Income-tested, combined with federal CCB.

Tax Calculation Example

$100,000 Income in Alberta

Bracket Income Rate Tax
Federal 1 $55,867 15% $8,380
Federal 2 $44,133 20.5% $9,047
Alberta $100,000 10% $10,000
Total ~$27,427

Before credits.

Comparison at Same Income

Province Tax on $100K
Alberta ~$23,900
Ontario ~$24,900
BC ~$24,000
Quebec ~$26,800

Cost of Living Considerations

Higher Costs in Alberta

Factor Consideration
Housing (Calgary/Edmonton) Relatively affordable
Utilities Can be higher
Car insurance Higher than some provinces
Groceries Similar to national average

Overall Advantage

For Most Earners Alberta Wins
Income over $80K Significant tax savings
High consumption No PST savings
Families Child benefits solid

Moving to Alberta

Financial Benefits

Benefit Details
Immediate tax cut Move before Dec 31
No PST Instant savings
Lower brackets Better for high earners

Considerations

Factor Think About
Employment Job market in your field
Cost of living Overall expenses
Healthcare Different system
Lifestyle Winter climate

Alberta Advantage for Retirees

Benefits

Factor Advantage
Pension income Lower tax
No PST On purchases
Property taxes Vary by city
Healthcare Publicly funded

Pension Tax Savings

Annual Pension Alberta vs Ontario Savings
$50,000 ~$800/year
$75,000 ~$1,500/year
$100,000 ~$2,500/year

Tax Planning in Alberta

Strategies

Strategy Benefit
RRSP contributions Reduce at 10-15%
Dividend income Alberta dividend credit
Capital gains Lower overall rate
Retirement timing Move before last working year

Why RRSP Still Matters

Even at 10% Consider
Federal portion 15-33% saved
Future lower rate In retirement
Tax-deferred growth Compound benefit