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However, since Canada has a progressive tax system, no matter where you live, as your income increases, so does your tax amount.
In Alberta, the tax brackets are pretty wide compared to the rest of the country. This means that more people will fall into the same provincial tax bracket as those who live in other provinces. Let’s take a look at these tax brackets and how they work.
Alberta Marginal Tax Rates
In Alberta, the marginal rate you pay is based on your taxable income. This is how much money you make in a year that is considered taxable. While most sources of income are considered to be taxable, there are a few exceptions when it comes to Alberta taxes.
Here are the tax bracket thresholds for your provincial tax bill in Alberta for 2024.
| Taxable Income | Marginal Tax Rated |
| On the first $148,269 | 10% |
| On the next $29,656 | 12% |
| On the next $59,308 | 13% |
| On the next $118,615 | 14% |
| On amounts over $355,845 | 15% |
How Alberta Rates Compare to the Rest Of Canada
As you can see, the margins for the income tax brackets in Alberta are pretty large. This means that a small pay raise won’t bump you into a different tax bracket like it would in other provinces.
Let’s take a look at what the other tax rates are throughout the country and see how they relate to Alberta.
| Provinces/Territories | Tax Rates |
| British Columbia | 5.06% on the first $47,9377.07% on the next $47,93810.5% on the next $14,20112.29% on the next $23,58814.70% on the next $47,56816.80% on the next $71,52020.50% on amounts over $252,752 |
| Saskatchewan | 10.5% on the first $52,05712.5% on the next $96,67714.5% on amounts over $148,736 |
| Manitoba | 10.8% on the first $47,00012.75% on the next $53,00017.4% on any amount over $100,000 |
| Newfoundland and Labrador | 8.7% on the first $43,91814.5% on the next $43,19715.8% on the next $67,84919,8% on the next $61,69920.8% on the next $275,86921.3% on the next $551,73920.5% on any amount over $1,103,478 |
| Nova Scotia | 8.79% on the first $29,59014.95% on the next $29,59016.67% on the next $33,82017.5% on the next $57,00021% on amounts over $150,000 |
| Prince Edward Island | 9.8% on the first $32,65613,8% on the next $31,65716.7% on the next $40,68718% on the next $35,00018.75% on amounts over $140,000 |
| Ontario | 5.05% on the first $51,4469.15% on the next $51,44811.16% on the next $47,10612.16% on the next $70,00013.16% on amounts over $220,000 |
| Quebec | 15% on the first $51,78020% on the next $51,76524% on the next $22,45525.75% on amounts over $126,000 |
| New Brunswick | 9.68% on the first $49,95814.82% on the next $50,31816% on the next $85,14819.5% on amounts over $185,064 |
| Northwest Territories | 5.9% on the first $50,5978.6% on the next $50,60112.2% on the next $63,32714.05% on amounts over $164,525 |
| Yukon | 6.4% on the first $55,8679% on the next $55,86610.9% on the next $61,47212.8% on the next $253,24815% on amounts over $500,000 |
| Nunavut | 4% on the first $53,2687% on the next $53,2699% on the next $66,66811.5% on amounts over $173,205 |
Compared to most other provinces, Alberta’s highest tax rate is lower. While some provinces are slightly lower, a good majority have the highest tax rate of 17% or more.
Federal Tax Rates 2024
When trying to determine what your tax rate is going to be, it’s not just your provincial taxes you need to consider. You also need to consider federal taxes determined by the federal government Canada Revenue Agency. Once you’ve determined that, then you can find your combined tax rate.
Here are the federal tax brackets for 2024. These can help you determine the total cost of your federal income taxes.
| Taxable Income Amounts | Federal Income Tax Rates |
| On the portion of the income from $0 - $55,867 | 15% |
| On the portion of income, that’s $55,867 - $111,733 | 20.5% |
| On the portion of income that’s $111,733 - $173,205 | 26% |
| On the portion of income that’s $173,205 - $246,752 | 29% |
| On the portion of income, that’s $246,752 plus | 33% |
Combined 2024 Tax Rates in Alberta
Now that we have discussed both the federal and provincial tax rates for Alberta let’s take a look at the total personal income tax rates based on total annual taxable income.
| Taxable Income | Combined Tax Rate |
| On the portion of the income from $0 - $55,867 | 25% |
| On the portion of income, that’s $55,867 - $111,733 | 30.5% |
| On the portion of income, that’s $111,733 - $148,269 | 36% |
| On the portion of income that’s $148,269 - $173,205 | 38% |
| On the portion of income that’s $173,205 - $177,922 | 41% |
| On the portion of income that’s $177,922 - $237,230 | 42% |
| On the portion of income that’s $237,230 - $246,752 | 43% |
| On the portion of income that’s $246,752 - $355,845 | 47% |
| On the portion of income that’s above $355,845 | 48% |
Taxable and Non-Taxable Income in Alberta
In Alberta, what income is considered taxable and non-taxable is comparable to the rest of the country. Income that’s considered non-taxable is:
- Gifts
- Inheritances
- Lottery winnings
- Most types of strike pay
- Most life insurance policy amounts
- GST payments
- Canada Child Benefits amounts
- Alberta Child and Family Benefit amounts
- Funds received if you were a victim of a motor vehicle accident or a crime
- Some government benefits
The most common form of income that’s considered taxable is earned income, also referred to as employment income. Then, there are other types of income that are taxable, such as investment income. The only difference with investment income is that certain types have different tax rates.
Another important thing to consider when figuring out your taxable income is your basic personal tax amount. For the 2024 tax year, the basic personal amount is $15,705. What exactly is this amount? Well, it’s the maximum amount you’re able to make without paying taxes. It’s essentially considered a non-refundable tax credit that anyone in Canada can claim. If you make less than that amount, then you’ll receive all taxes you may have paid back when you file your Canadian income tax return.
Other Alberta Tax Rates
When it comes to taxes, we’ve gone over what you pay on taxable income. Let’s take a look at what you pay for certain types of investment income.
| Taxable Income | Capital Gains Tax | Canadian Eligible Dividends | Canadian Non-Eligible Dividends |
| On the portion of the income from $0 - $55,867 | 12.5% | 2.57% | 15.86% |
| On the portion of income, that’s $55,867 - $111,733 | 15,25% | 10.16% | 22.18% |
| On the portion of income, that’s $111,733 - $148,269 | 18% | 17.75% | 28.51% |
| On the portion of income that’s $148,269 - $173,205 | 19% | 20.51% | 30.81% |
| On the portion of income that’s $173,205 - $177,922 | 20.66% | 25.09% | 34.63% |
| On the portion of income that’s $177,922 - $237,230 | 21.16% | 26.47% | 35.78% |
| On the portion of income that’s $237,230 - $246,752 | 21.66% | 27.85% | 36.93% |
| On the portion of income that’s $246,752 - $355,845 | 23.5% | 32.93% | 41.16% |
| On the portion of income that’s above $355,845 | 24% | 34.31% | 42.31% |
How Much Tax You Pay Based on Salary
Even though we’ve mentioned what the different individual and combined federal and provincial income tax rates are, it can still be difficult to calculate what the income tax deducted from a yearly taxable income might be. Let’s take a look at some common salary amounts in Alberta and what the tax is on these amounts.
| Annual Taxable Income | Tax Amounts |
| $50,000 | $14,887 |
| $75,000 | $23,260 |
| $100,000 | $27,588.22 |
| $150,000 | $49,240 |
2024 Corporate Tax Rates in Alberta
In Alberta, the corporate tax rate is different from other provinces. It actually has one of the lowest corporate tax rates in Canada at just 8%. This is significantly lower than other provinces, including BC, which has a tax rate of 12%. This makes the federal rate for Alberta 23% and BC 27%.
Final Thoughts
Taxes can be a tricky thing to figure out, especially if you’re self-employed. As a self-employed person, it’s difficult to figure out how much you need to put away every year in order to have enough to pay when you file your income tax return. You’ll also have to factor in any expenses or deductions, such as medical expenses, that you can claim as well.
If you’re employed, these deductions are made for you unless you have more than one job and earn more money. Even with knowing which tax bracket you fall into, there are so many factors to consider when it comes to taxes. For this reason, many choose to consult a tax professional. They can help you determine what you can claim, what income is considered non-taxable, and how to save the most money on your taxes based on your personal finance situation.
