Tax · Alberta
Alberta income tax.
Estimate your 2026 Alberta and federal income tax, net income, effective rate and marginal rate.
An Alberta income tax calculator for the 2026 tax year. Enter your gross income and it returns federal tax, Alberta tax, net income, and your effective and marginal rate.
Alberta is no longer a flat-tax province. The first $61,200 of taxable income is now taxed at 8%, and Alberta’s basic personal amount of $22,769 is the largest in Canada by a wide margin.
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Alberta’s new 8% bracket
For most of its modern history Alberta was the only province in Canada without progressive provincial brackets at all — a single flat 10% rate on every dollar of taxable income. That is over. Alberta now applies 8% to the first $61,200 of taxable income, and 10% only above it.
| Taxable income | Rate |
|---|---|
| $0 – $61,200 | 8% |
| $61,200 – $154,259 | 10% |
| $154,259 – $185,111 | 12% |
| $185,111 – $246,813 | 13% |
| $246,813 – $370,220 | 14% |
| Over $370,220 | 15% |
The first bracket is also the widest in the country: $61,200 of income at a single rate, where BC has already moved through two brackets and Quebec is into its second. Above that the structure is nearly flat — 10% all the way to $154,259.
The largest basic personal amount in Canada
Alberta’s basic personal amount for 2026 is $22,769. No other province is close: Saskatchewan is next at about $20,381, Quebec at $18,952, BC at $13,216 and Ontario at $12,989. An Albertan earning $22,000 pays no provincial income tax whatsoever.
The size of that amount is doing most of the work in Alberta’s low-tax reputation. The credit it generates is worth about $1,166 more than Ontario’s equivalent, which is why an Albertan on $25,000 pays roughly $178 of provincial income tax where an Ontarian pays about $607.
Worth being straight about, because it is widely misunderstood: Alberta is not the cheapest province for provincial income tax at every income. Alberta’s 8% and 10% rates are higher than Ontario’s 5.05% and 9.15% and British Columbia’s 5.6% and 7.7%, so between roughly $40,000 and $117,000 an Albertan pays slightly more provincial income tax than an Ontarian on the same income. Alberta pulls ahead below about $30,000, where the basic personal amount dominates, and decisively above about $117,000, where Ontario’s surtax begins to bite and Alberta’s rate is still 10%.
Alberta claws back a quarter of its own credits
Alberta is the only jurisdiction in Canada whose payroll formula contains a credit reduction. In CRA’s T4127 it is factor K5P: where the value of an employee’s Alberta basic personal credit plus their CPP and EI credits exceeds $4,896, Alberta takes back 25% of the excess.
Nobody else does this. Ontario, BC and Quebec all allow their basic credits in full. It is a small effect in dollar terms but it is genuinely Alberta-specific, and it is one of the reasons an Alberta estimate built by swapping a rate into a generic calculator comes out slightly too low.
No provincial sales tax, no surtax, no health premium
Alberta charges 5% GST and nothing on top — the only province with no PST or HST. It also has no surtax — Ontario is the only jurisdiction in Canada with one — and no health premium charged to individuals. The Alberta Health Care Insurance Plan is publicly funded and Alberta’s premium regulation currently sets the individual monthly premium at $0.00.
None of that changes the income tax figure the calculator above produces, but it does change what the resulting take-home pay buys, and it is the honest reason Alberta’s overall tax burden is lower than its bracket table alone would suggest.
Federal tax is the same everywhere
Only the provincial half of the bill changes with your address. The 2026 federal brackets below apply identically in every province and territory, and the federal basic personal amount is $16,452, clawed back on a straight line to $14,829 between $181,440 and $258,482 of net income.
| Taxable income | Rate |
|---|---|
| $0 – $58,523 | 14% |
| $58,523 – $117,045 | 20.5% |
| $117,045 – $181,440 | 26% |
| $181,440 – $258,482 | 29% |
| Over $258,482 | 33% |
How the calculator gets from income to tax
The tool works out federal tax and Alberta tax separately, then adds them. For each, it applies the bracket rates to your taxable income and subtracts the basic personal amount credit at the lowest bracket rate. It uses the full-year 2026 figures and the basic personal amounts only. Any RRSP contribution or other deduction you enter lowers taxable income before the brackets apply.
Worked example: $85,000 of income in Alberta, 2026
- Alberta brackets: $61,200 × 8% = $4,896.00, plus the remaining $23,800 × 10% = $2,380.00, for $7,276.00.
- Alberta basic personal credit: $22,769 × 8% = $1,821.52, which leaves $5,454.48 of Alberta tax.
- Federal: $58,523 × 14% = $8,193.22, plus $26,477 × 20.5% = $5,427.79, less the $16,452 basic personal credit at 14% ($2,303.28), leaves $11,317.73.
- Total tax $16,772.21, so net income is $68,227.79. The average rate is 19.7% and the marginal rate is 30.5%, which is the 20.5% federal rate plus Alberta's 10%.
Alberta's clawback on its own credits, described above, applies only when the basic personal credit plus the CPP and EI credits exceeds $4,896. This tool models the basic credit alone, which is $1,821.52, so the clawback does not apply to these examples.
What different incomes pay
| Income | Federal | Alberta | Total tax | Average rate | Marginal rate |
|---|---|---|---|---|---|
| $30,000 | $1,897 | $578 | $2,475 | 8.3% | 22.0% |
| $50,000 | $4,697 | $2,178 | $6,875 | 13.8% | 22.0% |
| $85,000 | $11,318 | $5,454 | $16,772 | 19.7% | 30.5% |
| $120,000 | $18,655 | $8,954 | $27,610 | 23.0% | 36.0% |
| $200,000 | $40,067 | $18,018 | $58,085 | 29.0% | 42.3% |
These are the figures the calculator returns with no RRSP contribution or other deductions. At $200,000 the marginal rate is a little above the sum of the 29% federal and 13% Alberta bracket rates, because the federal basic personal amount is being clawed back between $181,440 and $258,482 of net income.
The effect of an RRSP contribution
An RRSP contribution is deducted before the brackets apply, so it saves tax at your marginal rate. At $85,000, a $5,000 contribution cuts total tax from $16,772 to $15,247, a saving of $1,525 or 30.5% of the contribution.
2025 and 2026 Alberta brackets compared
Several searches ask for the 2025 Alberta brackets or a 2025 calculator. This calculator is built for the 2026 tax year, but the Government of Alberta publishes both years, and its page says thresholds and credit amounts rise by 2% in 2026.
| Rate | 2025 bracket | 2026 bracket |
|---|---|---|
| 8% | Up to $60,000 | Up to $61,200 |
| 10% | $60,000 to $151,234 | $61,200 to $154,259 |
| 12% | $151,234 to $181,481 | $154,259 to $185,111 |
| 13% | $181,481 to $241,974 | $185,111 to $246,813 |
| 14% | $241,974 to $362,961 | $246,813 to $370,220 |
| 15% | Over $362,961 | Over $370,220 |
Calgary, Edmonton and everywhere else in Alberta
People searching for income tax in Calgary or Edmonton will get the same numbers from this tool. Federal and provincial income tax are set by the two governments, and the CRA determines the province that applies to you by where you lived on December 31 of the tax year. Moving within Alberta changes nothing about your income tax. What does differ between cities is property tax, which you can estimate with the municipal property tax estimator.
Tax return calculator or refund estimate?
This is a tax calculator, not a refund calculator. A refund is the difference between the tax your employer or payer already withheld and the tax you actually owe, and the tool does not know your withholding. It also leaves out the CPP and EI credits, the Canada employment amount and any family, age, disability or other credits, so your filed return will differ. To see how an RRSP contribution could change your bill, use the Alberta RRSP refund calculator, and for a neighbouring province compare the Saskatchewan income tax calculator or the BC income tax calculator.
Sources
Every rate, threshold and ceiling on this page is taken from the official publication linked below. Last verified 2 September 2026.
- Government of Alberta — Personal income tax rates and credits
- CRA T4127 — Payroll Deductions Formulas — the governing source for every withholding figure on this page. Two 2026 editions exist: the 122nd, effective 1 January 2026, and the 123rd, effective 1 July 2026 and currently in force. This page uses full-year annual rates, not the prorated mid-year catch-up rates the 123rd edition publishes for July–December withholding.
- CRA — Federal income tax rates and brackets
- CRA T4127 — federal basic personal amount and its phase-out — $16,452 falling to $14,829 between $181,440 and $258,482
Sources
The facts added to this page were checked against these primary sources in October 2026. Where a source does not publish a number, this page says so rather than guessing.
- Government of Alberta: Personal income tax — 2025 and 2026 Alberta tax brackets and the 2% increase in thresholds and credits (retrieved 2026-10).
- CRA: Current year tax rates and income brackets (2026) — 2026 federal and Alberta brackets, and the December 31 residence rule (retrieved 2026-10).
- CRA: T4127 Payroll Deductions Formulas, 123rd edition — basis for the basic personal amounts and credit rates used in the calculator (retrieved 2026-10).
Frequently asked questions
Does Alberta still have a flat tax rate?
No. Alberta’s long-standing single 10% provincial rate has been replaced with a progressive structure. For 2026 the first $61,200 of taxable income is taxed at 8%, and 10% applies above that, rising to 15% over $370,220.
Alberta was the last province in Canada using a genuinely flat provincial rate, so any guide written before the change will give the wrong answer.
What is Alberta’s basic personal amount for 2026?
It is $22,769, the highest of any province or territory in Canada. Saskatchewan is next at about $20,381; Ontario’s is $12,989.
An Albertan earning less than $22,769 owes no provincial income tax, though federal tax may still apply above the federal basic personal amount.
Is Alberta really the lowest-tax province?
Not at every income. Alberta’s basic personal amount of $22,769 makes it clearly cheapest below about $30,000, and its flat 10% band plus the absence of any surtax makes it clearly cheapest above about $117,000.
In between, Alberta’s 8% and 10% rates are higher than Ontario’s 5.05% and 9.15% and BC’s 5.6% and 7.7%, so an Albertan on $85,000 pays slightly more provincial income tax than an Ontarian. Alberta’s wider advantage comes from having no provincial sales tax, no surtax and no health premium rather than from its income tax rates alone.
Does Alberta have a health care premium?
No. The Alberta Health Care Insurance Plan is publicly funded, and Alberta’s premium regulation currently sets the individual monthly premium at $0.00. Nothing equivalent to the Ontario Health Premium is charged to Alberta residents.
Alberta employers also pay no provincial payroll health levy of the kind British Columbia and Ontario impose on business.
What are the Alberta tax brackets for 2025?
For 2025 the Government of Alberta lists 8% on income up to $60,000, 10% from $60,000 to $151,234, 12% to $181,481, 13% to $241,974, 14% to $362,961 and 15% above that. The 2026 brackets are 2% higher and are shown in the table above.
How much income tax do I pay on $85,000 in Alberta?
With no deductions and only the basic personal amounts, the calculator gives $16,772 in 2026: $11,318 federal and $5,454 Alberta. That is an average rate of 19.7%. Your filed return will differ once your other credits are applied.
Do I pay a different income tax in Calgary or Edmonton?
No. Income tax is federal plus provincial, and the CRA uses your province of residence on December 31. Alberta municipalities charge property tax rather than income tax, so the city you live in changes your property tax but not your income tax.
Can this calculator estimate my tax refund?
No. A refund depends on how much tax has already been withheld from your pay, which the tool does not know, and on credits it does not model, such as CPP and EI. It shows the tax owing on your income, which you can compare with the total withheld on your T4.
Disclaimer
Estimate only — not tax advice. Figures use 2026 federal and Alberta brackets and the basic personal amount, and exclude every other credit and deduction, including provincial low-income reductions and the credits for CPP and EI. Your filed return will differ. Confirm anything that matters with the CRA or a professional adviser.