Alberta’s new 8 percent bracket: up to $750 back at filing time

Alberta introduced a new bottom tax bracket for the 2025 tax year: the first $60,000 of taxable income is now taxed at 8 percent instead of 10 percent. Albertans filing their 2025 returns this spring are seeing the saving reflected for the first time.

The maximum benefit is about $750 per person for 2025, reached at $60,000 of income. Above that, Alberta’s familiar rate ladder continues at 10, 12, 13, 14 and 15 percent.

Alberta also continues to have the highest basic personal amount among the provinces, at more than $22,000, which means many lower-income Albertans pay no provincial income tax at all.

If you moved to or from Alberta during the year, your province of residence on December 31 determines which provincial rates apply to your whole year. That single date can shift your bill by hundreds of dollars, so plan interprovincial moves with the calendar in mind.

This article is general information based on published CRA figures and is not tax, legal or financial advice. Confirm details for your situation before acting.