Personal Income Tax

Changes to Alberta's personal income tax system
(as of October 1, 2015) and revenue raised

In 2015, the government implemented a progressive personal income tax rate structure to help reduce our reliance on volatile non-renewable resource revenue and provide additional revenue to fund the public services and infrastructure that benefit Albertans. The increase in personal income tax revenue is estimated at $875 million in 2017-18, as reported in Budget 2017.

The following table shows an estimate of how much of the additional revenue comes from each income tax bracket, along with an estimate of the number of taxfilers whose top tax rate falls within the bracket.

Tax Bracket (2017)

Additional  Personal Income Tax Revenue from Tax Change (2017-18)

Number
of Taxfilers

Proportion
of Taxfilers

Up to $126,626

N/A

2,857,284

92.1%

$126,625.01 to $151,950

$13 million

81,145

2.6%

$151,950.01 to $202,600

$61 million

75,162

2.4%

$202,600.01 to $303,900

$120 million

50,462

1.6%

$303,900.01 and up

$681 million

38,518

1.2%

Source: Alberta Treasury Board and Finance.

Notes:

  • Based on Budget 2017 estimates. 
  • Estimates are based on the most recent historical data available at the time. Revenues are adjusted to 2017-18 and incorporate estimates of how tax increases impact taxable income.

Back to Top

Background

The Act to Restore Fairness in Public Revenue, 2015, received Royal Assent on June 29, 2015.

The corporate income tax rate was increased by two percentage points, effective July 1, 2015, and a more progressive, multi-rate personal income tax system came into effect October 1, 2015. See Personal Income Tax Changes - Questions and Answers.

Back to Top

Related information

Personal Income Tax Calculator

Commonly Used Forms

Income Tax Credit Indexing

Alberta Family Employment Tax Credit

Alberta Child Benefit

Back to Top

 

Page last updated:  October 30, 2017