Alberta Income Tax Brackets 2025
- $0 – $148,269: 10% Alberta rate (flat)
- $148,270 – $177,922: 12% Alberta rate
- $177,923 – $237,230: 13% Alberta rate
- $237,231 – $355,845: 14% Alberta rate
- Over $355,845: 15% Alberta rate
Alberta basic personal amount: $21,003 for 2025.
Federal Income Tax Brackets 2025
- $0 – $57,375: 15%
- $57,376 – $114,750: 20.5%
- $114,751 – $158,519: 26%
- $158,520 – $220,000: 29%
- Over $220,000: 33%
Frequently Asked Questions
Does Alberta have no provincial income tax?
Alberta does have provincial income tax, but it's one of the lowest in Canada. The provincial rate is a flat 10% on income up to $148,269 with no PST (provincial sales tax). This makes Alberta very attractive for middle-income earners.
How much do I save on taxes by living in Alberta vs Ontario?
For a $100,000 income, living in Alberta saves roughly $3,000–$5,000 per year compared to Ontario in provincial taxes alone. Alberta also has no PST (5% on purchases), saving another 5-8% on everyday spending compared to provinces with HST.
What is the top marginal tax rate in Alberta 2025?
Alberta's top combined rate is 48.00% (33% federal + 15% AB), applying to income over $355,845 — the highest threshold in Canada. For incomes up to $148,269, the provincial rate is a flat 10%, making Alberta the lowest-taxed province for middle incomes.
Do newcomers to Alberta pay less tax?
Yes, compared to most other provinces. Alberta's flat 10% provincial rate on the first $148,269 means you keep more of your income. Combined with no PST, Alberta is financially attractive for newcomers, especially in Calgary and Edmonton's growing job markets.
What is the Alberta basic personal amount for 2025?
Alberta's basic personal amount for 2025 is $21,003 — one of the highest provincial basic personal amounts in Canada. This means your first $21,003 of income is effectively tax-free at the provincial level.