Alberta Tax Brackets, Rates & Provincial Tax Credits
TurboTax Canada
January 21, 2025 | 3 Min Read
Updated for tax year 2025

Beautiful Alberta! Not only is Alberta one of the best places to live in Canada with stunning nature, the Calgary Stampede (dubbed the greatest outdoor show on Earth), and tonnes of winter sports, but Alberta also boasts one of the lowest income tax rates in Canada.
The tax rates in Alberta range from 10% to 15% of income and the combined federal and provincial tax rate is between 25% and 48%.

Key Takeaways
- Alberta uses a progressive tax structure, which means that a specific tax rate is applicable to a set range of income.
- Alberta has the highest basic personal amounts (BPA) in Canada.
- For the 2024 tax year, the Alberta basic personal amount is $21,885, while the federal basic personal amount is $15,705.
Alberta’s personal income tax brackets for Tax Year 2025
Tax rate | Taxable income threshold |
---|---|
8% | on the portion of taxable income that is $60,000 or less, plus |
10% | on the portion of taxable income over $60,000 up to $151,234, plus |
12% | on the portion of taxable income over $151,234 up to $181,481, plus |
13% | on the portion of taxable income over $181,481 up to $241,974, plus |
14% | on the portion of taxable income over $241,974 up to $362,961, plus |
15% | on the portion of taxable income over $362,961 |
How Alberta’s tax brackets work
Alberta’s tax system is similar to most other Canadian provinces and largely mirrors the tax structure at the federal level. As with most provinces, Alberta uses a progressive tax structure, which means that a specific tax rate applies to a set range of income. Tax brackets aren’t static—tax rates increase each year, based on inflation.
What’s used to calculate the tax rates in Alberta?
Income for determining your tax bracket is calculated by adding the sum of all income streams for the year, such as employment, self-employment, pension, saving plans, investments, benefits, and more totalled on line 15000–Total Income, then subtracting applicable deductions. The result of this calculation is shown on line 26000–Taxable Income and used to determine your tax brackets.
You can use our free Alberta income tax calculator to get your tax amounts in minutes.
Why does Alberta pay less taxes?
Alberta has the highest Basic Personal Amounts in Canada. Basic Personal Amounts (BPAs) are the allowable amount of income that you can earn before you must start paying taxes. For the 2025 tax year, the Alberta Basic Personal Amount is $22,323, while the federal Basic Personal Amount is $16,129.
Moreover, the first tax bracket in Alberta is only taxed at a 10% tax rate. With no sales tax, payroll tax, or health premiums in Alberta, Albertans generally pay lower taxes and keep more of their earnings compared to other provinces.
Alberta’s combined marginal tax rates
Along with provincial taxes, all Canadian taxpayers pay federal income taxes. Below are the federal tax brackets for 2025:
Tax rate | Taxable income threshold |
---|---|
14.5% | on the portion of taxable income that is $57,375 or less, plus |
20.5% | on the portion of taxable income over $57,375 up to $114,750, plus |
26% | on the portion of taxable income over $114,750 up to $177,882, plus |
29% | on the portion of taxable income over $177,882 up to $253,414, plus |
33% | on the portion of taxable income over $253,414 |
Alberta’s provincial tax credits
Many of the Alberta provincial tax credits and deductions complement similar ones at the federal level, but there are some unique credits for residents of Alberta.
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The Alberta Child and Family Benefit (ACFB): This benefit is a nontaxable amount paid to lower-income families with children under 18 years of age. The quarterly amounts are issued separately from the Canada Child Benefit (CCB) in August, November, February, and May.
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