Updated: April 2025  |  bremo.io financial guides

Alberta Tax Credits 2025

Alberta is often called the most tax-friendly province in Canada. It has no provincial sales tax (PST), some of the lowest provincial income tax rates in the country, and a relatively simple provincial tax system. If you lived in Alberta on December 31, 2024, you benefit from a unique tax environment that leaves more money in your pocket than most other provinces.

Alberta Provincial Tax Rates 2025

Alberta's provincial income tax brackets for 2025 are:

• 10% on the first $148,269 of taxable income
• 12% on $148,269 to $177,922
• 13% on $177,922 to $237,230
• 14% on $237,230 to $341,988
• 15% on income over $341,988

Alberta Basic Personal Amount

The Alberta basic personal amount for 2025 is approximately $21,003 — one of the most generous in Canada. This means the first $21,003 of income is effectively tax-free at the provincial level, a significantly larger exemption than most other provinces.

Alberta Non-Refundable Tax Credits (AB428)

Alberta's non-refundable credits mirror the federal system:

• Spousal or common-law partner amount: Credit for supporting a lower-income spouse, with an Alberta basic amount of approximately $21,003
• Eligible dependant amount: For single parents or those supporting a dependent
• Age amount: For residents 65 and older
• Pension income amount: For those receiving eligible pension income
• Disability amount: For those with a severe and prolonged impairment (requires federal DTC)
• Caregiver amount: For supporting an infirm dependant at home
• Student interest: Credit on interest paid on eligible student loans
• Charitable donations: 10% on first $200, 21% above (Alberta rates)

Alberta Seniors Benefit

Low and middle-income Alberta seniors (65+) may be eligible for the Alberta Seniors Benefit — a monthly income supplement for seniors with annual income below approximately $29,285 for singles or $47,545 for couples. This is applied for separately through Alberta Seniors and Housing, not through your tax return.

Alberta Family Employment Tax Credit

The Alberta Family Employment Tax Credit (AFETC) is a refundable credit for lower-income Albertans who have earned income and dependent children. The credit is paid annually and phases in based on employment income, designed to encourage work and help families with children.

Alberta Farm Fuel Distribution Allowance

Alberta farmers using marked gasoline or diesel for farming operations can receive a rebate on the provincial fuel tax component. This is claimed separately from income taxes.

Alberta Political Contribution Tax Credit

Alberta residents who contribute to registered Alberta political parties or candidates can claim a provincial tax credit of 75% on contributions up to $200, declining to a maximum annual credit of $750 on larger contributions.

No Provincial Health Premium in Alberta

Unlike Ontario which charges a health premium (up to $900/year added to provincial tax), Alberta eliminated its health care premiums entirely. This effectively makes Alberta's all-in provincial tax lower than the nominal rates suggest for Ontarians in similar brackets.

Alberta Innovation Employment Grant

Alberta businesses (not individuals) engaged in qualifying scientific research and experimental development may receive the Alberta Innovation Employment Grant — a credit of 8% for smaller Canadian-controlled private corporations and 2% for larger corporations, applied against eligible R&D expenditures.