Alberta is widely considered the most tax-friendly province in Canada for individuals. It has no provincial sales tax, relatively low provincial income tax rates, and no provincial surtax. Here is a complete guide to Alberta's 2025 income tax brackets and what you will owe in combined federal and provincial tax.
| Income Range | Alberta Rate |
|---|---|
| $0 to $148,269 | 10% |
| $148,270 to $177,922 | 12% |
| $177,923 to $237,230 | 13% |
| $237,231 to $355,845 | 14% |
| Over $355,845 | 15% |
Alberta's Basic Personal Amount is $21,003 — the highest of any province. This means the first $21,003 of income is effectively exempt from provincial tax, providing a provincial credit of $21,003 × 10% = $2,100.
| Income Range | Combined Marginal Rate |
|---|---|
| $0 to $57,375 | 25% |
| $57,376 to $114,750 | 30.5% |
| $114,751 to $148,269 | 36% |
| $148,270 to $158,519 | 38% |
| $158,520 to $177,922 | 41% |
| $177,923 to $220,000 | 42% |
| $220,001 to $237,230 | 46% |
| Over $355,845 | 48% |
Alberta funds a significant portion of its provincial budget through oil and gas revenues, which reduces its reliance on income tax. The province has historically maintained lower personal income tax rates compared to Ontario, BC, and Quebec. Alberta also abolished its health care premiums in 2009, which further reduces the cost of living for residents.
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