2026 Alberta Budget Highlights
On February 26, 2026, Alberta’s Minister of Finance, Nate Horner, tabled the province’s 2026 budget. We have highlighted selected tax measures relevant to individuals and small businesses in Alberta.
INDIVIDUALS
Personal Tax Rates
No changes to Alberta personal income tax rates were announced in this budget. Personal income tax revenue is projected to rise with incomes, but statutory rates remain as previously set.
Provincial Income Tax Brackets and Tax Rates
| Taxable Income | 2025 | Taxable Income | 2026 |
|---|---|---|---|
| $0 to $60,000 | 8% | $0 to $61,200 | 8% |
| $60,000 to $151,234 | 10% | $61,200 to $154,259 | 10% |
| $151,234 to $181,481 | 12% | $154,259 to $185,111 | 12% |
| $181,481 to $241,974 | 13% | $185,111 to $246,813 | 13% |
| $241,974 to $362,961 | 14% | $246,813 to $370,220 | 14% |
| Over $362,961 | 15% | Over $370,220 | 15% |
Top Combined Alberta and Federal Rates - 2026
| Other/Interest/ Salary/Pension | Capital Gains | Eligible Canadian Dividends | Non-eligible Canadian Dividends |
|---|---|---|---|
| 48.00% | 24.00% | 34.31% | 42.31% |
Top rates apply to taxable income over $370,220 based on known federal and provincial rates as of February 26, 2026.
Other Personal Tax Measures
- Starting in 2027, Alberta will replace the caregiver and infirm dependent credits with a single credit aligned to the federal Canada Caregiver Credit, offering up to $13,180 (about $1,054 in tax savings).
Consumer and Other Taxes
-
The Education Property Tax rates will increase again for the 2026/2027
period, based on $1,000 of a property’s equalized assessment.
- Residential/farmland rate will increase from $2.72 to $2.84 per $1,000.
- Non-residential rate will increase from $4.00 to $4.17 per $1,000.
- Tourism Levy increases to 6% from 4%, effective April 1, 2026. Applies to hotels and other short‑term accommodations.
- New Vehicle Rental Tax of 6% on passenger‑vehicle rentals picked up in Alberta, effective January 1, 2027. Long‑term leases and non‑passenger rentals (e.g., moving trucks) are excluded.
BUSINESSES
The budget did not propose any changes to corporate income tax rates, introduce new corporate tax credits, nor did it change the $500,000 provincial small business income threshold.
2026 Corporate Tax Rates
| Income Type | Provincial | Federal | Combined Rates Calendar 2026 |
|---|---|---|---|
| General corporate | 8.00% | 15.00% | 23.00% |
| Small business – to $500,000 | 2.00% | 9.00% | 11.00% |
| CCPC* investment | 8.00% | 38.67% | 46.67% |
| CCPC* investment income | 8.00% | 15.00% | 23.00% |
| Non-CCPC investment income | 8.00% | 15.00% | 23.00% |
| Manufacturing and processing income | 8.00% | 15.00% | 23.00% |
Based on known federal and provincial rates as of February 26, 2026.
*Canadian Controlled Private Corporation
- The 2026-27 budget will reduce the Film and Television Tax Credit by $35 million or 8% from the 2025-2026 budget to $60 million.
Refer to the 2026 Alberta Budget for further details.
This has been prepared by the Total Wealth Solutions Group of Raymond James Ltd., (RJL). Statistics and factual data and other information are from sources RJL believes to be reliable, but their accuracy cannot be guaranteed. It is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities nor is it meant to replace legal, accounting, taxation or other professional advice. We are not tax advisors, and we recommend that clients seek independent advice from a professional advisor on tax-related matters. The information is furnished on the basis and understanding that RJL is to be under no liability whatsoever in respect thereof. This is intended for distribution only in those jurisdictions where RJL and the author are registered. Securities-related products and services are offered through Raymond James Ltd., Member of the Canadian Investor Protection Fund. Insurance products and services are offered through Raymond James Financial Planning Ltd., which is not a Member of the Canadian Investor Protection Fund.
