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Set up direct deposit and skip the monthly fee. Free to open, and the Easy plan has no monthly fee. Worth doing if you will actually move your pay or your CRA deposits over, not if the card sits unused. Code BREMO2026.
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 $27,000/year at $500K 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 – $220,000 | 29% |
| Over $220,000 | 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 – $220,000 | 29% | 13% | 42% |
| $220,000 – $237,2300 | 33% | 13% | 46% |
| $237,2300 – $355,845 | 33% | 14% | 47% |
| Over $355,845 | 33% | 15% | 48% |
You can't avoid provincial taxes, but you can eliminate banking fees. KOHO is free forever — save $200+/year vs the big banks and keep more after-tax dollars in your pocket.
Get KOHO Free — Code BREMO2026Alberta's basic personal amount for 2026 is $21,003 — the highest of any province. This means the first $21,003 of income is completely free from Alberta provincial tax, worth approximately $2,100 in tax savings. Combined with the federal BPA of $16,129, Albertans get substantial tax relief on lower income.
On $200,000 of income, an Alberta resident pays approximately $68,500 in combined tax versus $80,000 in Ontario — saving $11,500 per year. On $300,000, the gap is roughly $20,000 annually. Over a 100-year career, that's $100,000–$200,000 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 $250,000 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