Results are estimates for educational purposes only. Based on 2026 federal and Alberta tax rates. Always consult a qualified accountant.
Alberta income tax overview
Alberta has long been considered Canada's most tax-friendly province, combining a flat 10% provincial income tax rate (rising to a maximum of 15% only for very high earners above $355,845) with no provincial sales tax at all — Albertans pay only the federal 5% GST on purchases. This combination, funded historically by oil and gas royalty revenue, has made Alberta attractive for both individuals and businesses relocating from higher-tax provinces. Calgary and Edmonton form the province's two major economic hubs, with Calgary historically centred on energy and Edmonton on government and manufacturing, though both have diversified significantly in recent years. Alberta's tax advantage is one of the most significant inter-provincial differences in Canada.
2026 Alberta tax rate
Tax rate
Taxable income
8%
Up to $60,000
10%
$60,001 – $151,234
12%
$151,235 – $181,481
13%
$181,482 – $241,974
14%
$241,975 – $362,961
15%
Over $362,961
Alberta introduced a new 8% starter bracket in recent reform, providing additional relief for lower-income earners below $60,000.
Worked example: $65,000 salary in Alberta
A $65,000 salary in Alberta results in approximately $5,300 in provincial tax (effective ~8.2% blended across the 8% and 10% brackets), plus roughly $7,800 federal tax, $3,665 CPP, and $1,079 EI. Annual take-home is approximately $47,156, or $1,814 bi-weekly.
Key facts: No provincial sales tax · New 8% starter bracket for lower incomes · Top rate only 15% above $362,961
Frequently asked questions — Alberta income tax
Correct — Alberta is the only province with no provincial sales tax at all. Residents pay only the federal 5% GST, making Alberta one of the lowest combined-tax jurisdictions in North America.
Alberta introduced the new 8% starter bracket on income up to $60,000 as part of a broader tax relief package aimed at providing savings for lower and middle-income residents, while the higher brackets remained largely unchanged.
Yes, for most income levels Alberta remains the lowest combined federal+provincial tax burden in Canada, particularly when factoring in the absence of any provincial sales tax.
Alberta's historical reliance on oil and gas royalty revenue has allowed the province to maintain lower tax rates than other provinces, though fluctuating energy prices have occasionally pressured the provincial budget and prompted periodic policy discussions about diversifying revenue sources.
No. Alberta municipalities, including Calgary and Edmonton, do not levy local income taxes.