Tax and Revenue Administration - Frequently Asked Questions (FAQs)
Corporate Income Tax FAQs - Tax Rate changes
- What are the rate changes to Alberta’s Corporate Income Tax (CIT) system?
- Why is the small business tax rate being reduced?
- Effective January 1, 2017, the small business tax rate was decreased by one percentage point from three per cent to two per cent.
See Special Notice Vol. 5, No. 45, Alberta Small Business Tax Rate Reduction
(April 14, 2016); and the related Alberta Small Business Deduction – AT1 Schedule 1 form.
- Effective July 1, 2015, the general CIT rate was increased by two percentage points from 10 per cent to 12 per cent.
See Special Notice Vol. 5, No. 42, Bill 2 - An Act to Restore Fairness to Public Revenue, Alberta Corporate Tax Rate Change (July 2, 2015).
The reduction to the small business tax rate is part of the Alberta government’s Climate Leadership Plan and is intended to help small businesses adjust to the cost of carbon. This tax relief will be worth an estimated $185 million to Alberta small business owners.
Businesses continue to enjoy an advantage in Alberta when compared to other provinces, with no sales tax, no payroll tax, and no health care premiums. Find out more about the Alberta Tax Advantage.