The lowest tax rates
in the country
Alberta’s low tax rates leave companies with more to invest in people, research and growth
Alberta has some of the lowest taxes in North America — with no provincial sales tax, no payroll tax, no health care premiums, and some of the lowest corporate income taxes in Canada.
Low fuel taxes and low personal income tax rates make Alberta one of the most cost competitive jurisdictions in the country.
Alberta Legislature Building in Edmonton, Alberta
Photo Credit: © Travel Alberta Photo by Sameer Ahmed
Alberta’s tax advantage in 2023-24 is $19.7 billion. Albertans and Alberta businesses continue to pay the lowest overall taxes compared to other Canadian provinces.
Alberta’s Tax Advantage
Alberta’s tax advantage is an estimate of the total additional provincial taxes individuals and businesses would pay if Alberta had the same tax system as other provinces. Ontario and Saskatchewan are the closest, netting at $19.7 billion more in taxes under respective tax systems.
Alberta tax advantage in 2023-24 relative to other provincial tax systems (in billions)
Lowest corporate tax rates in the country
Alberta is serious about being the most competitive jurisdiction to invest and do business in. That’s why we’ve dropped our corporate tax rate to 8% — well below every other Canadian province and in line with some of the most competitive US states.
The combined federal / provincial corporate income tax rate in Alberta is 23% (15% federal and 8% provincial) for general businesses and 11% (9% federal and 2% provincial) for small businesses with revenues below $500,000.
Low commercial property tax rates
Low commercial property tax rates
When compared to other major Canadian cities, Edmonton and Calgary’s commercial property tax rates are among the lowest. Municipalities in Alberta can also offer up to 15 years of property tax incentives.
Estimated commercial property taxes in Calgary (per $1,000 of assessment)
CORPORATE MARGINAL EFFECTIVE TAX RATE COMPARISON
Alberta’s combined federal-provincial corporate income tax rate is lower than the combined federal-state rate of 44 US jurisdictions. When a broader set of taxes paid by businesses is factored in for the purpose of calculating the marginal effective tax rate on new investment, Alberta’s tax system is more competitive for new investment than competing US jurisdictions.
Corporate marginal effective tax rate comparison
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Calgary Folk Festival and Bow River in Calgary
Photo Credit: © Travel Alberta Photo by Tourism Calgary