Five provincial brackets, flat 10% start, no surtax — Canada's most competitive provincial tax structure
Alberta's five-bracket provincial tax system starts at a flat 10% on the first $148,269 of taxable income — far exceeding every other province's first bracket threshold. With no surtax, no PST, and the highest basic personal amount ($21,003) in Canada, Alberta consistently offers the lowest effective provincial tax rates in the country. Here is every bracket, rate, and effective tax figure for 2026.
| Income Range | AB Rate | Tax on Bracket | Cumulative AB Tax |
|---|---|---|---|
| $0 – $148,269 | 10% | Up to $14,827 | Up to $14,827 |
| $148,269 – $177,922 | 12% | Up to $3,558 | Up to $18,385 |
| $177,922 – $237,230 | 13% | Up to $7,710 | Up to $26,095 |
| $237,230 – $355,845 | 14% | Up to $16,607 | Up to $42,702 |
| Over $355,845 | 15% | No ceiling | — |
| Income | AB Tax | Federal Tax | Combined | Effective Rate | Take-Home |
|---|---|---|---|---|---|
| $50,000 | $2,900 | $5,081 | $7,981 | 16.0% | $42,019 |
| $75,000 | $5,400 | $10,818 | $16,218 | 21.6% | $58,782 |
| $100,000 | $7,900 | $17,068 | $24,968 | 25.0% | $75,032 |
| $150,000 | $12,827 | $30,568 | $43,395 | 28.9% | $106,605 |
| $200,000 | $18,785 | $45,228 | $64,013 | 32.0% | $135,987 |
| $300,000 | $32,523 | $78,728 | $111,251 | 37.1% | $188,749 |
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Get KOHO Free — Code 45ET55JSYA| Income Range | Federal | Alberta | Combined Marginal |
|---|---|---|---|
| $0 – $57,375 | 15% | 10% | 25% |
| $57,375 – $114,750 | 20.5% | 10% | 30.5% |
| $114,750 – $148,269 | 26% | 10% | 36% |
| $148,269 – $158,519 | 26% | 12% | 38% |
| $158,519 – $177,922 | 29% | 12% | 41% |
| $177,922 – $220,000 | 29% | 13% | 42% |
| $220,000 – $237,230 | 33% | 13% | 46% |
| $237,230 – $355,845 | 33% | 14% | 47% |
| Over $355,845 | 33% | 15% | 48% |
The starkest difference emerges in the $100,000–$148,269 range: Ontario residents pay 11.16% provincially (plus surtax), while Albertans pay a flat 10%. At $150,000, Ontario's 12.16% rate applies — Alberta is still at 10% on all income up to $148,269, then 12% above. The compounding effect over a career is substantial: an Albertan earning $150,000 saves approximately $11,500/year in combined tax versus the same income in Ontario.
Compare Ontario, BC, and Alberta side by side.
ON→AB Savings Calculator →Also see: Alberta Income Tax 2026 | Alberta Tax Credits 2026 | Lowest Tax Provinces