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Alberta Income Tax Rates and Tax Brackets

Beautiful Alberta! They probably weren’t thinking about taxes when they chose the motto “strong and free”. Alberta isn’t tax-free, but if you’re up to date on the latest tax rates and most popular credits, deductions and programs, you might feel less of a tax burden come tax time.

Alberta has a tax system similar to other Canadian provinces. Many of the Alberta provincial taxes and credits compliment similar credits at the federal level, but there are some unique credits for residents of Alberta.

Alberta’s Income Tax Brackets for Tax Year 2020

Alberta’s tax system is similar to most other Canadian provinces and largely mirrors the tax structure at the federal level. Alberta also has some province-specific credits. First, let’s take a closer look at how taxes and tax brackets in Alberta work.

Tax Rate

Tax Bracket

Taxable Annual Income

10%  on the first $131,220   $131,220 
12%  on the next $26,244  over $131,220 up to $157,464
13%  on the next $52,488  over $157,464 up to $209,952
14%  on the next $104,976  over $209,952 up to $314,928
15%  on the portion over $314,928  over $314,928

How Alberta’s Tax Brackets Work

A tax bracket is the tax rate applicable to a set range of income. 

As with most provinces, Alberta uses a progressive tax structure. The tax brackets increase each year, based on inflation. More information can be found in this link: Alberta Treasury Board and Finance – Personal Income Tax.

Alberta Tax Credits

How is the Tax Rate Structure in Alberta Determined?

The Government of Alberta uses a progressive structure to calculate tax brackets in Alberta. The tax rates in Alberta range from 10 percent to 15 percent of income. Therefore, your income tax rates are determined by how much income you made during the year. Tax brackets in Alberta are not static; meaning they can change from year to year.

What Is 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 credits and deductions. The result of this calculation shown on Line 26000 – Taxable Income and used to determine your tax brackets.

There is an allowable amount of income that you can earn before you must start paying taxes. That is called the “basic personal” or “personal amount.” For the 2020 tax year, the Federal basic personal amount is $13,229, while the Alberta basic personal amount is $19,369. Alberta has the highest basic personal amount in Canada.

This TurboTax article provides more information on the federal tax rates, as well as links to other provinces and tax calculators: An Overview of Canada’s Tax Brackets.

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Provincial tax brackets

Looking for an income tax calculator for your province or territory?

Alberta Tax Brackets Alberta tax calculator
British Columbia Tax Brackets British Columbia tax calculator
Manitoba Tax Brackets Manitoba tax calculator
Newfoundland and Labrador Tax Brackets Newfoundland and Labrador tax calculator
New Brunswick Tax Brackets New Brunswick tax calculator
Northwest Territories Tax Brackets Northwest Territories tax calculator
Nova Scotia Tax Brackets Nova Scotia tax calculator
Nunavut Tax Brackets Nunavut tax calculator
Ontario Tax Brackets Ontario tax calculator
Prince Edward Island Tax Brackets Prince Edward Island tax calculator
Québec Tax Brackets Quebec tax calculator
Saskatchewan Tax Brackets Saskatchewan tax calculator
Yukon Tax Brackets Yukon tax calculator