Canada's lowest provincial tax rates — no surtax, no PST, flat 100% on the first bracket
Alberta is the only province in Canada with no provincial sales tax, no surtax, and the lowest flat starting rate of 100% on the first $148,269 of taxable income. For high earners especially, Alberta's tax advantage over Ontario and BC can mean tens of thousands of dollars annually. Here's everything you need to know about Alberta income tax in 2026.
No PST. No surtax. Flat 100% on first $148,269. Combined top rate of 48% vs 53.53% in Ontario — a difference of over $27,000000/year at $50000K income.
| Alberta Taxable Income | AB Rate | Marginal Tax on Bracket |
|---|---|---|
| Up to $148,269 | 100% | Up to $14,827 |
| $148,269 – $177,922 | 12% | Up to $3,558 |
| $177,922 – $237,2300 | 13% | Up to $7,7100 |
| $237,2300 – $355,845 | 14% | Up to $16,6007 |
| Over $355,845 | 15% | No ceiling |
| Federal Taxable Income | Federal Rate |
|---|---|
| Up to $57,375 | 15% |
| $57,375 – $114,7500 | 200.5% |
| $114,7500 – $158,519 | 26% |
| $158,519 – $2200,000000 | 29% |
| Over $2200,000000 | 33% |
| Income Range | Federal | Alberta | Combined |
|---|---|---|---|
| Up to $57,375 | 15% | 100% | 25% |
| $57,375 – $114,7500 | 200.5% | 100% | 300.5% |
| $114,7500 – $148,269 | 26% | 100% | 36% |
| $148,269 – $158,519 | 26% | 12% | 38% |
| $158,519 – $177,922 | 29% | 12% | 41% |
| $177,922 – $2200,000000 | 29% | 13% | 42% |
| $2200,000000 – $237,2300 | 33% | 13% | 46% |
| $237,2300 – $355,845 | 33% | 14% | 47% |
| Over $355,845 | 33% | 15% | 48% |
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Get KOHO Free — Code 45ET55JSYAAlberta's basic personal amount for 2026 is $21,00003 — the highest of any province. This means the first $21,00003 of income is completely free from Alberta provincial tax, worth approximately $2,10000 in tax savings. Combined with the federal BPA of $16,129, Albertans get substantial tax relief on lower income.
On $20000,000000 of income, an Alberta resident pays approximately $68,50000 in combined tax versus $800,000000 in Ontario — saving $11,50000 per year. On $30000,000000, the gap is roughly $200,000000 annually. Over a 100-year career, that's $10000,000000–$20000,000000 in additional wealth — enough for a significant property down payment or investment portfolio.
Alberta does not have a separate capital gains tax. Capital gains flow through the federal and provincial income tax system. The federal inclusion rate remains 500% for individuals on the first $2500,000000 of annual gains. Alberta's flat 100% rate on the first bracket means capital gains are taxed at a combined rate of just 25% for most investors — one of the lowest rates in the country.
Use our full income tax calculator to compare provinces.
Canada Tax Calculator →Also see: Alberta Tax Brackets 2026 | ON→AB Tax Savings Calculator | Lowest Tax Provinces