Alberta Income Tax Rates and Brackets 2025

Updated March 2025 • bremo.io

Alberta is Canada's lowest-tax province for most income levels. It levies no provincial sales tax (PST), and its income tax system has relatively low rates with a higher threshold before top rates kick in. This combination creates a significant financial advantage for Alberta residents.

Alberta's Key Tax Advantage: No provincial sales tax. Residents pay only the 5% federal GST, compared to 12–15% combined sales tax in every other province.

2025 Alberta Provincial Income Tax Brackets

Taxable Income	Alberta Provincial Rate
$0 – $148,269	10%
$148,269 – $177,922	12%
$177,922 – $237,230	13%
$237,230 – $341,988	14%
Over $341,988	15%

2025 Combined Federal + Alberta Marginal Tax Rates

Income Range	Federal Rate	Alberta Rate	Combined
$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 – $341,988	33%	14%	47%
Over $341,988	33%	15%	48%

Alberta Basic Personal Amount 2025

Alberta's basic personal amount is $21,003 for 2025 — the highest in Canada. This means Albertans pay no provincial income tax on their first $21,003 of income, generating a provincial tax savings of about $2,100 (10% × $21,003).

Alberta Sales Tax: GST Only (5%)

Alberta is the only province in Canada with no provincial sales tax. Residents pay only the federal GST of 5% on most purchases. This saves an average household hundreds to thousands of dollars per year compared to living in a province with HST.

On a $50,000 in annual spending, the difference in sales tax versus Ontario (13% HST) is approximately $4,000/year. Versus Atlantic Canada provinces with 15% HST, the difference approaches $5,000/year.

Alberta-Specific Tax Credits

Alberta Child and Family Benefit: Quarterly payments for lower and middle-income Alberta families with children under 18. Up to $1,330/year per child (amounts income-tested).
Alberta Family Employment Tax Credit: Refundable credit for working families with children under 18.
Alberta Investor Tax Credit: 30% credit for investments in eligible Alberta small businesses.
Alberta Scientific Research and Experimental Development (SR&ED): 10% provincial tax credit on top of the federal SR&ED credits.

No Employer Health Tax

Unlike Ontario (EHT) and several other provinces, Alberta does not levy a separate employer health tax. This reduces payroll costs for businesses and indirectly benefits employees.

Why High Earners Move to Alberta

For someone earning $300,000, the total tax difference between Alberta and Quebec can exceed $30,000 per year. Even compared to BC or Ontario, Alberta saves high earners $100–$20,000 annually. Over a 10-year period, this difference compounds significantly — making Alberta one of the most tax-efficient places to earn a high income in Canada.

Alberta vs National Average

Income Level	Alberta Tax	National Avg. Tax	Alberta Savings
$60,000	~$13,200	~$14,800	~$1,600
$100,000	~$24,400	~$27,600	~$3,200
$200,000	~$64,800	~$74,200	~$9,400
$300,000	~$109,500	~$127,000	~$17,500

Estimates only — income tax only, does not include sales tax difference.

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