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Alberta Income Tax Rates 2026 | Tax Brackets Guide

Updated

Alberta Tax Brackets 2026

Provincial Tax Rates

Taxable IncomeAlberta Rate
Up to $148,26910%
$148,270 - $177,92212%
$177,923 - $237,23013%
$237,231 - $355,84514%
Over $355,84515%

Combined Federal + Alberta Rates

Taxable IncomeCombined Rate
Up to $55,86725.00%
$55,867 - $111,73330.50%
$111,733 - $148,26936.00%
$148,269 - $173,20538.00%
$173,205 - $177,92241.32%
$177,922 - $237,23042.32%
$237,230 - $246,75243.32%
$246,752 - $355,84547.00%
Over $355,84548.00%

Alberta Tax Advantage

Comparison to Other Provinces

Income LevelAlbertaOntarioBC
$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

ProvinceSales Tax
Alberta5% (GST only)
Ontario13% (HST)
BC12% (GST + PST)
Quebec14.975% (GST + QST)

Annual PST Savings

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

Alberta Tax Credits

Non-Refundable Credits

Credit2026 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

CreditDetails
Alberta Family Employment Tax CreditLow/moderate income families
Alberta Child and Family BenefitIncome-tested

Alberta Child and Family Benefit

Payment Amounts

ChildrenMaximum
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

BracketIncomeRateTax
Federal 1$55,86715%$8,380
Federal 2$44,13320.5%$9,047
Alberta$100,00010%$10,000
Total~$27,427

Before credits.

Comparison at Same Income

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

Cost of Living Considerations

Higher Costs in Alberta

FactorConsideration
Housing (Calgary/Edmonton)Relatively affordable
UtilitiesCan be higher
Car insuranceHigher than some provinces
GroceriesSimilar to national average

Overall Advantage

For Most EarnersAlberta Wins
Income over $80KSignificant tax savings
High consumptionNo PST savings
FamiliesChild benefits solid

Moving to Alberta

Financial Benefits

BenefitDetails
Immediate tax cutMove before Dec 31
No PSTInstant savings
Lower bracketsBetter for high earners

Considerations

FactorThink About
EmploymentJob market in your field
Cost of livingOverall expenses
HealthcareDifferent system
LifestyleWinter climate

Alberta Advantage for Retirees

Benefits

FactorAdvantage
Pension incomeLower tax
No PSTOn purchases
Property taxesVary by city
HealthcarePublicly funded

Pension Tax Savings

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

Tax Planning in Alberta

Strategies

StrategyBenefit
RRSP contributionsReduce at 10-15%
Dividend incomeAlberta dividend credit
Capital gainsLower overall rate
Retirement timingMove before last working year

Why RRSP Still Matters

Even at 10%Consider
Federal portion15-33% saved
Future lower rateIn retirement
Tax-deferred growthCompound 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 purchaseAlberta total taxOntario total taxSavings 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.