Alberta Personal Income Tax Calculator Assumptions

Updated February 22, 2013

1. For singles, single parents and married couples, the family's entire income is wage/salary income.
   
   

2. The individual(s) is (are) not self-employed.
   
   

3. Children do not have any income and are assumed to be between the ages of 6 and 16. (The calculator does not factor in amounts received from the federal Universal Child Care Benefit.)
   
   

4. The amount entered in the RRSP/RPP columns does not exceed the legally claimable amount.
   
   

5. The amount entered for child-care expenses does not exceed the legally claimable amount.
   
   

6. The medical expenses and charitable donations credits are always claimed by the individual in the family with the highest net income.
   
   

7. Child-care expenses are always claimed by the individual with the lowest income, once RRSP/RPP contributions have been deducted.
   
   

8. Seniors do not have children under the age of 18, do not make RRSP/RPP contributions, are over the age of 65, and no longer receive any employment income.
   
   

9. Those credits that can be transferred are always transferred from the secondary earner to the primary earner.
   
   

10. The following values were used for the federal tax calculation in 2012:
    
    
    • Basic personal amount: $10,822.
    • Spousal/Equivalent to spouse amount: $10,822.
    • Second bracket threshold: $42,707.
    • Third bracket threshold: $85,414.
    • Fourth bracket threshold: $132,406.
    • Tax rates: 15% / 22% / 26% / 29%
    • Medical expense tax credit: base ceiling $2,109.
    • Employment Insurance: 1.83% rate and $45,900 ceiling.
    • Canada Pension Plan: 4.95% rate, $3,500 floor, and $50,100 ceiling.
      
      
11. The following values were used for the Alberta tax calculation in 2012:
    
    
    • Basic personal amount: $17,282.
    • Spousal/Equivalent to spouse amount: $17,282.
    • Tax rate: 10% of taxable income.
    • Medical expense tax credit: base ceiling $2,233.
    • Employment Insurance: 1.83% rate and $45,900 ceiling.
    • Canada Pension Plan: 4.95% rate, $3,500 floor, and $50,100 ceiling.

IMPORTANT NOTICE:

The tax calculator asks you to provide selected information about yourself based on common income sources, deductions and credits. This selected information is based on your prediction of your circumstances in 2012.

The tax calculator is intended to give you an estimate of your potential taxes at year-end, based on the limited information you provide and the assumptions set out on the tax calculator web site.

The tax calculator cannot give you an accurate or official assessment of your 2012 tax liability.

The calculator cannot duplicate the results obtained from using an actual income tax return containing the complete set of information that reflects your actual circumstances.

Calculations are done on the user’s own computer, and the information is not recorded or stored by the government. Albertans are still required to file their official income tax return.

BY USING THIS CALCULATOR, YOU ACKNOWLEDGE THAT THE TAX CALCULATOR CANNOT GIVE YOU AN ACCURATE ASSESSMENT OF YOUR 2012 LIABILITY, YOU AGREE TO READ THE INSTRUCTIONS AND ASSUMPTIONS PRIOR TO USING THE CALCULATOR, AND YOU ACCEPT THE TERMS OF USE.