All the Numbers

Income tax in Alberta

From the All the Numbers wiki · Tax

An Alberta resident's provincial tax is worked out on the AB428, attached to the federal return: brackets on taxable income, then credits at the lowest rate.

The rules (2026)

Brackets: 8% up to $61,200; 10% to $154,259; 12% to $185,111; 13% to $246,813; 14% to $370,220; 15% above.[1]

  • Basic personal amount: $22,769, the largest of any province.[2]
  • Spouse or eligible dependant: the basic personal amount less the dependant's net income.[3]
  • Age amount: $6,345 at 65 or over, less 15% of net income above $47,234.[4]
  • Pension amount: $1,753.[5] CPP and EI are credited as on the federal return.[6]
  • Dividends: credits of 8.12% (eligible) and 2.18% (other) of the grossed-up dividend.[7][8]
  • Minimum tax: 35% of the federal additional tax.[9] Foreign tax is credited on the T2036.[10]
  • Supplemental tax credit: 25% of the personal credits above $4,896, taken last. It came with the 8% bracket so that people with large credits (disability, tuition and the like) do not lose from it; with only the credits the planner models it does not reach that threshold.[11]

There is no surtax, no health premium and no low-income reduction.

After 2026

Alberta's dollar amounts grow each year by the lesser of 2% and Alberta's price index. A projection follows that cap: at a plan rate above it, Alberta's brackets and credits grow more slowly than the federal ones.[12] See tax brackets after 2026.

See also

  • Tax brackets after 2026 are projected, not published · Every year after 2026 is taxed with the 2026 brackets, personal amounts, credits and CPP/EI ceilings grown at the plan's inflation rate. That is how CRA indexes them, but the real figures are announced each fall and will differ.

References

  1. ↑alberta.ca — Personal income tax, Table 1, 2026 tax brackets: 8% up to $61,200; 10% to $154,259; 12% to $185,111; 13% to $246,813; 14% to $370,220; 15% and up · Alberta personal income tax brackets and rates · See the source · effective 2026-01-01
  2. ↑CRA TD1AB 2026, line 1: basic personal amount 22,769 · Alberta basic personal amount · $22,769 · effective 2026-01-01
  3. ↑CRA TD1AB 2026, lines 5–6: "Enter the difference between the amount on line 1 and your spouse's or common-law partner's estimated net income" · Alberta spouse or eligible dependant amount: the basic personal amount less the dependant's net income · effective 2026-01-01
  4. ↑CRA TD1AB 2026, line 2: "your net income … will be $47,234 or less, enter $6,345 … a partial amount if your net income … will be between $47,234 and $89,534" (6,345 / 42,300 = 15%) · Alberta age amount (65 or older at year end), less 15% of net income over the threshold · See the source · effective 2026-01-01
  5. ↑CRA TD1AB 2026, line 3: "enter whichever is less: $1,753 or your estimated annual pension" · Alberta pension income amount · $1,753 · effective 2026-01-01
  6. ↑Alberta Personal Income Tax Act s.19 (EI and CPP contributions credit) · AB428 carries base CPP contributions and EI premiums as credits at the lowest Alberta rate · effective 2026-01-01
  7. ↑Alberta Personal Income Tax Act s.21(c)(ii): ITA 121(b) read with "227/770" of the gross-up, which is 8.12% of the grossed-up eligible dividend · Alberta dividend tax credit on eligible dividends, as a share of the grossed-up dividend · 8.12% · effective 2021-01-01
  8. ↑Alberta Personal Income Tax Act s.21(c)(i): ITA 121(a) read with "149/890" of the gross-up, which is 2.18% of the grossed-up dividend · Alberta dividend tax credit on other than eligible dividends, as a share of the grossed-up dividend · 2.18% · effective 2021-01-01
  9. ↑Alberta Personal Income Tax Act s.48(1): "35% of the amount that would be determined under subsection 120.2(3) of the federal Act" · Alberta additional tax for minimum tax: this share of the federal additional tax · 35% · effective 2026-01-01
  10. ↑Alberta Personal Income Tax Act s.23 (foreign tax credit) · Alberta foreign tax credit (T2036): foreign non-business tax beyond the federal credit, up to the foreign share of Alberta tax · effective 2026-01-01
  11. ↑Alberta Personal Income Tax Act s.20.2: "(A − $4800) x 0.25 where A [is] the total of all amounts deducted under sections 8 to 10, 12 to 13.1, 18, 19 and 20.1"; s.44.2(1) indexes the $4,800 ($4,896 for 2026 at the 2% escalator) · Alberta supplemental tax credit: a share of the personal credits over a threshold, taken last · See the source · effective 2026-01-01
  12. ↑Alberta Personal Income Tax Act s.44.2(0.1): "the lesser of (i) 2%, and (ii)" the change in the Consumer Price Index for Alberta; never negative (s.44.2(0.3)) · The Alberta escalator: dollar amounts grow each year by the lesser of this and Alberta CPI · 2% · effective 2026-01-01