Legislation - 29th Legislature, 1st Session - 2015
An Act to Restore Fairness in Public Revenue, 2015
The Act to Restore Fairness to Public Revenue received Royal Assent on June 29, 2015. The changes bring fairness to the tax system in Alberta.
- Read the Act to Restore Fairness to Public Revenue
- Read the news release
- News conference: watch the video or listen to the audio
- Personal Income Tax Changes – Questions and Answers
- Personal Income Tax Calculator
- Corporate Tax Change – Questions and Answers
The Act eliminates Alberta’s flat 10 per cent rate on personal income and replaces it with a progressive, multi-rate structure for higher income earners.
Once fully implemented in 2016, the new personal income tax (PIT) rates will be:
- On first $125,000 of taxable income: 10 per cent
- On next $25,000, from $125,000 - $150,000: 12 per cent
- On next $50,000, from $150,000 - $200,000: 13 per cent
- On next $100,000, from $200,000 - $300,000: 14 per cent
- On taxable income above $300,000: 15 per cent
These changes came into effect on October 1, 2015. Prorated rates for the 2015 tax year can be found at Changes to Personal Income Tax – Questions and Answers.
The Act also increased Alberta’s corporate income tax (CIT) rate, from 10 per cent to 12 per cent, effective July 1, 2015.
Even with the PIT and CIT rate increases fully implemented, Alberta will still maintain about an $8.9 billion tax advantage (in 2016-17) in comparison to the next lowest taxed province, with no sales tax, no health care premiums, no payroll tax and the lowest fuel tax among provinces.
Alberta has the highest basic personal and spousal amounts in the country, allowing Albertans to earn more before they have to pay personal income tax. These amounts and other personal tax credits are indexed annually to inflation to ensure that the benefit they provide does not erode over time.