How Alberta income tax works
| Taxable income 2026 | Alberta rate |
|---|---|
| Up to $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% |
Non-refundable credits are calculated at 8%: the basic personal amount of $22,769 plus CPP and EI. If your credits at 8% exceed $4,896, Alberta’s supplemental credit gives back a quarter of the excess, so the new lower rate does not reduce the value of large credits.
Worked example: $60,000 in Alberta
Employment income $60,000, Alberta, 2026
All taxable income is in the 8% bracket, so Alberta tax is only $2,631. With federal tax, CPP and EI, take-home pay is $47,691 a year.
Take-home pay$47,691per year · Alberta
- Per month
- $3,974
- Every two weeks
- $1,834
- Marginal rate
- 34.34%tax + CPP/EI on next $
| Item | Year | Month | Bi-weekly | Week |
|---|---|---|---|---|
| Gross income | $60,000.00 | $5,000.00 | $2,307.69 | $1,153.85 |
| Federal tax | −$5,338.30 | −$444.86 | −$205.32 | −$102.66 |
| Alberta tax | −$2,631.30 | −$219.28 | −$101.20 | −$50.60 |
| CPP | −$3,361.75 | −$280.15 | −$129.30 | −$64.65 |
| EI premiums | −$978.00 | −$81.50 | −$37.62 | −$18.81 |
| Take-home pay | $47,690.65 | $3,974.22 | $1,834.26 | $917.13 |
At $100,000 Albertans keep $74,459. The combined marginal rate there is about 30.5%.
What changed for 2026
Alberta indexed its brackets and credits by 2.0%: the 8% bracket now ends at $61,200 and the basic personal amount is $22,769. The supplemental credit threshold rose to $4,896 (8% of $61,200).
Tips for Albertans
- No PST means everyday purchases cost less than in neighbouring BC or Saskatchewan — factor it into a cost-of-living comparison.
- The Alberta Child and Family Benefit is paid automatically when you file; make sure both parents file returns.
- RRSP refunds are smaller than in most provinces at middle incomes because the provincial rate is only 8–10%.