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Alberta Income Tax Rates 2026 | Tax Brackets Guide

Updated

Alberta Tax Brackets 2026

Provincial Tax Rates

Each portion of taxable income Rate
$0.00 to $61,200.00 8%
$61,200.01 to $154,259.00 10%
$154,259.01 to $185,111.00 12%
$185,111.01 to $246,813.00 13%
$246,813.01 to $370,220.00 14%
Over $370,220.01 15%

Source: Canada Revenue Agency – Canadian income tax rates for individuals, 2026. Verified August 28, 2026.

Combined Federal + Alberta Rates

Each portion of taxable income Combined Federal + Alberta Rate
Up to $58,523.00 22%
$58,523.00 to $61,200.00 28.5%
$61,200.00 to $117,045.00 30.5%
$117,045.00 to $154,259.00 36%
$154,259.00 to $181,440.00 38%
$181,440.00 to $185,111.00 41%
$185,111.00 to $246,813.00 42%
$246,813.00 to $258,482.00 43%
$258,482.00 to $370,220.00 47%
Over $370,220.00 48%

Combined marginal rate = federal rate + Alberta rate at each income level, computed directly from 2026 bracket data (not a separately-maintained table). Source: Canada Revenue Agency – Canadian income tax rates for individuals and the provincial revenue agency, verified August 28, 2026.

Alberta Tax Advantage

Comparison to Other Provinces

Income Level Alberta Ontario BC
$50,000 ~$11,000 ~$9,500 ~$9,800
$100,000 ~$25,500 ~$23,900 ~$23,300
$150,000 ~$42,500 ~$44,400 ~$41,500
$200,000 ~$62,200 ~$67,400 ~$62,600

Note: Alberta’s advantage grows with income — it isn’t the cheapest at lower incomes, but pulls ahead by $150,000-$200,000+.

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 $58,523 14% $8,193
Federal 2 $41,477 20.5% $8,503
Alberta 1 $61,200 8% $4,896
Alberta 2 $38,800 10% $3,880
Total ~$25,472

Before credits.

Comparison at Same Income

Province Tax on $100K
Alberta ~$25,500
Ontario ~$23,900
BC ~$23,300
Quebec ~$30,200

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

Alberta and large purchases: no PST advantage

One of the most visible benefits of living in Alberta is the absence of any provincial sales tax. This has an outsized effect on large purchases:

Large purchase Alberta total tax Ontario total tax Savings in Alberta
New car ($45,000) $2,250 (GST only) $5,850 (HST 13%) $3,600
Home renovation ($30,000) $1,500 $3,900 $2,400
Electronics ($3,000) $150 $390 $240
Furniture ($5,000) $250 $650 $400

For high earners making significant purchases annually, the absence of PST can represent thousands of dollars in annual savings beyond the income tax advantage.