Alberta Budget 2024: Key Tax Changes

Alberta has no provincial sales tax, making it unique among all Canadian provinces. Combined with generally lower provincial income tax rates, Alberta offers the lowest overall tax burden for most income levels. A single individual earning $80,000 in Alberta pays approximately $2,000-$3,000 less in provincial income tax than the same individual in Ontario or BC.

Alberta removed its own provincial carbon pricing system effective April 1, 2024. The federal carbon price backstop now applies to Alberta consumers. Under the federal system, Alberta households receive quarterly Canada Carbon Rebate payments from the federal government; however, Alberta has challenged the federal carbon pricing system in court. The net impact on most households depends on fuel consumption patterns.

The Alberta Child and Family Benefit provides quarterly payments to low- and middle-income Alberta families. For 2024, maximum annual payments are approximately $1,410 for the first child, $705 for the second, and $560 for each additional child. Benefits phase out beginning at $25,935 in family net income and are fully phased out around $44,000.

The Alberta general corporate income tax rate remains at 8%, giving Alberta the lowest combined federal-provincial corporate tax rate in Canada at 23% (15% federal + 8% provincial). Small CCPCs with active business income qualify for the small business deduction, reducing the Alberta rate to 2% on the first $500,000 in active business income.