Alberta tax brackets for 2026 and the new 8% rate

What are the Alberta tax brackets for 2026?

Alberta tax brackets for 2026 run from 8% to 15% across six bands, according to the Canada Revenue Agency (CRA). They apply to your taxable income from line 26000 of the T1 return, and the tax is worked out on Form AB428, Alberta Tax and Credits.

Every threshold moved up by Alberta's 2.0% indexing factor for 2026, as listed in the CRA's T4127 Payroll Deductions Formulas. Unlike Ontario, Alberta indexes all of its thresholds, so no band is frozen in place.

A tax bracket is a slice of income taxed at one rate. Only the dollars inside each slice pay that slice's rate, so moving into the 10% band does not raise the tax on your first $61,200.

When did Alberta add the 8% bracket?

Alberta's 8% bracket applies from January 1, 2025, on the first $60,000 of taxable income for 2025 and the first $61,200 for 2026. Before 2025, Alberta's lowest rate was 10%, so the new band cut tax on the first slice of income for nearly every Alberta filer.

Some sources give July 1, 2025 as the start date. That was when payroll withholding switched to the new rate; the Government of Alberta says the bracket itself was effective January 1, 2025, so the full-year saving showed up on 2025 returns filed in spring 2026. Alberta estimates the new bracket saved individuals up to $750 in 2025.

The Alberta supplemental tax credit

Alberta non-refundable credits, such as the basic personal amount, are multiplied by the lowest provincial rate. When that rate fell to 8%, people with very large credit claims would have lost value, so Alberta added a non-refundable supplemental tax credit equal to 2% of certain credit amounts above $60,000. It is claimed on line 61545 using Worksheet AB428 (CRA, Alberta tax information for 2025). Most people will not reach it; it mainly helps those with large medical, caregiver or disability claims.

Alberta tax brackets 2025 for comparison

For 2025 returns the Alberta bands were 8% to $60,000, 10% to $151,234, 12% to $181,481, 13% to $241,974, 14% to $362,961 and 15% above. Use these figures if you are still filing or checking a 2025 return.

Alberta tax brackets 2022 to 2024

Before the 8% band, Alberta had five brackets starting at 10%. These are the CRA's figures for the three earlier years, useful if you are filing a late return or checking an old notice of assessment; NETFILE still accepts returns back to 2018 until January 29, 2027.

Alberta tax brackets combined with federal rates

Your combined marginal rate in Alberta is the federal rate plus the Alberta rate on your next dollar of taxable income. Because the two sets of thresholds do not line up, there are ten combined bands for 2026, ranging from 22% to 48%.

Between $181,440 and $258,482 of net income, the federal basic personal amount shrinks, which adds roughly 0.3 percentage points to the real federal rate in that range. Alberta has no provincial surtax and no health premium, so the table above is the full provincial picture. The federal bands are explained on our Canada tax brackets page.

What is the basic personal amount in Alberta for 2026?

The Alberta basic personal amount for 2026 is $22,769, up from $22,323 in 2025 (CRA, T4127 January 2026). It goes on line 58040 of Form AB428 and is credited at 8%, so it lowers Alberta tax by $1,821.52.

That makes Alberta's amount the largest provincial basic personal amount in Canada and well above the federal $16,452. In practice, a resident with only this credit pays no Alberta tax on the first $22,769 of taxable income. The same $22,323 figure was also the 2025 income cut-off for the Alberta spouse or common-law partner amount (line 58120) and amount for an eligible dependant (line 58160). Our basic personal amount page lists every province and territory side by side.

Alberta tax brackets vs Ontario: is Alberta tax lower?

Yes, at most incomes the total provincial charge is lower in Alberta than in Ontario for 2026. Ontario's lower first rate (5.05%) can win on tax alone near $50,000, but once the Ontario Health Premium is added, Alberta comes out ahead at every income in the table below, and the gap widens sharply above about $100,000 because Ontario's surtax kicks in.

Federal tax is identical in both provinces, so these gaps are the whole difference in income tax. How we worked the $75,000 Alberta line: 8% of $61,200 is $4,896, plus 10% of the next $13,800 is $1,380, for $6,276; subtracting the $1,821.52 personal amount credit leaves $4,454.48.

Real returns include CPP, EI, pension and other credits, which lower both columns. Sales taxes also differ: Ontario charges 13% HST while Alberta has only the 5% GST. Full Ontario detail, including the surtax steps, is on our Ontario tax brackets page, and our income tax calculator guide shows how to run your own numbers.

What if you moved to or from Alberta?

You pay Alberta tax on your whole year's income if you lived in Alberta on December 31, even if you moved there in the fall. Someone who left Alberta for BC in November files Form BC428 instead and pays BC rates for the full year.

1. Check where you lived on December 31 of the tax year.
2. File that province's Form 428 with your T1 return; tax software selects it from the province of residence you enter.
3. If your employer withheld tax at the other province's rates, expect a refund or balance owing when you file.
4. Update your address with the CRA so benefits and notices use the right province.

Moving from Quebec works differently because Quebec residents file a separate provincial return; see Quebec tax brackets. West coast rates are on the BC tax brackets page.

When will the 2027 Alberta tax brackets be released?

As of October 22, 2026, the 2027 Alberta tax brackets and basic personal amount have not been announced. The CRA is expected to publish the 2027 indexed amounts in November 2026, and the Alberta thresholds will rise by whatever indexing factor Alberta sets for 2027. We will post them on our 2027 tax brackets page when they appear.