Alberta Income Tax: Brackets, the 8% Rate and Tax by Income

Alberta’s income tax starts at 8%, a rate it added from January 1, 2025, and pairs it with the highest basic personal amount of any province, so a larger share of income is untaxed before the first rate applies. This page sets out Alberta’s brackets and credits, Alberta tax at several incomes, and how the total compares with nearby provinces. It belongs to the income tax by province hub; for how marginal and average rates work in general, see tax brackets explained.

Alberta tax brackets

Source: Canada Revenue Agency – Canadian income tax rates for individuals, 2026. Verified September 5, 2026.

Alberta says its thresholds and credit amounts rose by 2% for 2026 (Alberta personal income tax). The first threshold, for example, went from $60,000 to $61,200. Each tax rate applies only to the part of your taxable income that falls in its bracket, not to all of it, so moving into a higher bracket raises the tax only on the income above that threshold; provincial or territorial tax applies in addition to federal tax.

Alberta’s lowest bracket

Alberta introduced its 8% bracket as a new bottom bracket from January 1, 2025, on the first $60,000 of taxable income in that year; the province says it saved individuals up to $750 in 2025. Even so, Alberta’s first rate is higher than Ontario’s (5.05%) and higher than British Columbia’s (5.6%). Alberta’s basic personal amount works the other way: claimed at the lowest rate, it takes $1,822 off Alberta tax, against $656 off Ontario tax and $740 off BC tax. Ontario’s LIFT credit and the BC tax reduction also lower tax at modest incomes, so which province charges less at a given income depends on all of these together; Alberta compared with nearby provinces compares the totals.

Basic personal amount

Alberta’s basic personal amount is $22,769 for 2026, against $16,452 federally. As a credit at the 8% rate, it reduces Alberta tax by $1,822, so someone with taxable income at or below $22,769 and no other Alberta tax pays none. The Alberta government describes its basic personal and spousal amounts as the highest among the provinces (source).

Families with children may also get the Alberta Child and Family Benefit, which is a benefit rather than an income tax credit.

Federal and Alberta tax at several incomes

Figures for a single employee with no other income, claiming only the basic credits (the basic personal amounts, Canada employment amount, CPP and EI), with the enhanced CPP contributions (the first additional contribution and CPP2) deducted from income, as on the return. They come from the same bracket and credit data as the tables above, not from a separate estimate.

Combined federal and Alberta marginal rates

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.

Alberta’s top rate of 15% starts above $370,220, so the top combined rate is 48%. The marginal tax rate calculator shows the rate on your next dollar, which is the rate an RRSP deduction saves.

Alberta compared with nearby provinces

Total income tax on the same employment income, same assumptions as the table above (Ontario includes its surtax and Health Premium):

At $60,000, Alberta income tax is $351 less than in Ontario and $64 more than in British Columbia; at $200,000 it is $6,575 less than in Ontario. Income tax is only part of the picture: Alberta has no provincial sales tax, so most purchases carry only the 5% GST (Alberta sales tax). Lowest-tax provinces compares all ten provinces, and the Saskatchewan and British Columbia pages cover the neighbouring systems.

Filing

Alberta tax is calculated on Form AB428, part of the federal return you file with the CRA, which administers Alberta’s personal income tax (CRA Alberta package). The income tax calculator estimates your own federal and Alberta tax.