Why are Alberta's taxes so low?

Alberta has the lowest provincial tax rates in Canada (10-15% vs 12.16-25.75% in other provinces) thanks to significant oil and gas revenue. The province generates billions from energy royalties, allowing it to keep personal income taxes low. Alberta is also the only province with NO provincial sales tax (PST).

How much will I save by moving to Alberta?

A typical earner making $75,000 saves about $2,000-$5,000 per year compared to other provinces. Someone moving from Ontario saves ~$2,400/year, from Quebec ~$4,800/year, from BC ~$2,100/year. High earners save significantly more - someone making $150,000 saves $8,000-$15,000 annually depending on the province.

Does Alberta have sales tax?

No provincial sales tax! Alberta is the ONLY Canadian province with zero PST. You only pay the 5% federal GST (Goods and Services Tax). Most other provinces charge 5% GST + 7-10% PST = 12-15% total. This means significant savings on everyday purchases, cars, electronics, and housing.

What are Alberta's provincial tax brackets for 2025?

Alberta's 2025 provincial tax rates are: 10% on the first $148,269, 12% on $148,270-$177,922, 13% on $177,923-$237,230, 14% on $237,231-$355,845, and 15% on income over $355,846. These are the lowest provincial rates in Canada. You also pay federal tax (15-33%) plus CPP (5.95%) and EI (1.66%).

Is Alberta tax-friendly for high earners?

Yes, extremely tax-friendly! Alberta's maximum provincial rate is only 15% (vs 20.5% in BC, 13.16% in Ontario, 25.75% in Quebec). Someone earning $250,000 saves $10,000-$20,000/year vs other provinces. Combined with no PST, high earners keep significantly more of their income in Alberta.

What's the total tax rate in Alberta?

Your total tax includes provincial (10-15%), federal (15-33%), CPP (5.95% up to $68,500), and EI (1.66% up to $63,200). For a $75,000 salary, total effective tax is about 23-25%. For $150,000, it's about 30-32%. This is 3-8% lower than other major provinces.

Is moving to Alberta worth it for middle-class earners?

Usually yes, especially if you can work remotely. Saving $2,000-$5,000/year in income tax plus no PST on purchases adds up to $3,000-$8,000 in total annual savings. Calgary and Edmonton have lower living costs than Toronto or Vancouver. However, winters are harsh and it's car-dependent.

Will Alberta's low taxes change?

Unlikely in the near term. Alberta's conservative government is committed to low taxes and no PST. While oil revenue fluctuates, the province has maintained low tax rates for decades. Any major tax increases would face strong political opposition. However, economic changes could impact future policy.

Alberta Income Tax Calculator 2025

✓ Updated: November 2025 • 2025 Tax Year

🍁 Alberta Tax Quick Facts (2025)

Provincial Tax Rates: 10% to 15% (LOWEST in Canada!)
Provincial Sales Tax: NONE - 0% PST!
GST Only: 5% (no PST to add)
First Bracket: 10% on first $148,269
Status: Most tax-friendly province for earners
Authority: Alberta Treasury Board and Finance

Alberta Has the LOWEST Provincial Tax Rates in Canada

Alberta is Canada's most tax-friendly province. You'll pay 10-15% provincial tax (the lowest rates in the country) and there's NO provincial sales tax - making Alberta the only province where you only pay 5% GST on purchases.

This makes Alberta ideal for:

Remote workers from high-tax provinces (Ontario, Quebec, BC)
High earners in tech, finance, energy, and healthcare
Small business owners and entrepreneurs
Anyone tired of 12-15% sales tax on everything

How Much Will You Actually Save?

Real Savings Examples: Moving to Alberta

Scenario 1: $75,000 Salary (Middle-Class)

From Province	Old Provincial Tax	Alberta Tax	Annual Savings
Ontario	~$3,800	$1,400	Save $2,400
Quebec	~$6,200	$1,400	Save $4,800
British Columbia	~$3,500	$1,400	Save $2,100
Nova Scotia	~$5,100	$1,400	Save $3,700

Scenario 2: $150,000 Salary (High Earner)

From Province	Old Provincial Tax	Alberta Tax	Annual Savings
Ontario	~$13,200	$5,800	Save $7,400
Quebec	~$20,800	$5,800	Save $15,000
British Columbia	~$13,900	$5,800	Save $8,100

Over 10 years at $75k: Save $24,000-$48,000 in provincial tax alone!

Plus NO PST savings: Add another $1,500-$3,000/year depending on spending!

Alberta's Tax Structure Explained

1. Provincial Income Tax (LOWEST in Canada)

Alberta's 2025 provincial tax brackets:

10% on the first $148,269
12% on $148,270 to $177,922
13% on $177,923 to $237,230
14% on $237,231 to $355,845
15% on income over $355,846

Why so low? Alberta generates billions from oil and gas royalties, allowing the province to keep income taxes minimal.

Provincial Tax Comparison (on $100,000 income)

Alberta: $2,700 (10-12%) ✅ Lowest!
Ontario: $6,100 (5.05-11.16%)
British Columbia: $6,800 (5.06-12.29%)
Quebec: $12,400 (14-25.75%) - Nearly 5x higher!
Nova Scotia: $8,900 (8.79-21%)

2. Federal Income Tax (Same Across Canada)

Everyone in Canada pays federal tax regardless of province:

15% on the first $55,867
20.5% on $55,868 to $111,733
26% on $111,734 to $173,205
29% on $173,206 to $246,752
33% on income over $246,753

3. CPP (Canada Pension Plan)

5.95% on income between $3,500 and $68,500 (maximum contribution: $3,867.50/year)

4. EI (Employment Insurance)

1.66% on income up to $63,200 (maximum contribution: $1,049.12/year)

5. NO Provincial Sales Tax!

Alberta is the ONLY province with zero PST. You only pay 5% GST.

Sales Tax Comparison

Province	GST	PST/HST	Total
Alberta	5%	0%	5%
Ontario	-	-	13% HST
Quebec	5%	9.975%	14.975%
British Columbia	5%	7%	12%
Nova Scotia	-	-	15% HST

Impact: If you spend $30,000/year on taxable goods, you save $2,100-$3,000/year vs other provinces!

The Full Cost-of-Living Picture

$75,000 Earner: Ontario vs Alberta (Real Math)

Category	Toronto, ON	Calgary, AB	Edmonton, AB
Provincial Tax	-$3,800	-$1,400	-$1,400
Sales Tax Savings	-	+$2,400/yr	+$2,400/yr
Rent (1BR)	-$2,200/mo	-$1,600/mo	-$1,200/mo
Annual Rent	-$26,400	-$19,200	-$14,400
Combined Savings	—	$12,000/yr	$17,400/yr

Key Insight: The combination of lower provincial tax + no PST + cheaper rent makes Alberta significantly more affordable than Ontario or BC.

Should You Move to Alberta?

✅ Alberta is a Great Move If:

You make $60k+ (bigger income = bigger tax savings)
You're moving from Ontario, Quebec, BC, or Atlantic Canada
You work in energy, tech, healthcare, construction, or finance
You can handle cold winters (-20°C to -30°C is common January-February)
You want to buy a home (Calgary/Edmonton housing is much cheaper than Toronto/Vancouver)
You like driving (both cities are car-dependent)
You're self-employed or run a business (provincial corporate rates are also lowest)

❌ Maybe Think Twice If:

You make under $50k (tax savings would only be $1,000-$2,000/year)
You hate winter (temperatures regularly hit -25°C, sometimes -40°C)
You need mountains/ocean nearby (Alberta has Rockies but no ocean)
You rely on public transit (Calgary/Edmonton have LRT but it's limited; you need a car)
You need specific cultural amenities only found in Toronto/Montreal/Vancouver
Oil industry volatility concerns you (Alberta's economy is tied to energy prices)

Best Alberta Cities for Remote Workers & Professionals

If you're moving to Alberta, here's where you get the most value:

Calgary
- Larger city with more amenities ($1,500-$1,800 for 1BR)
- Strong job market: energy, tech, finance
- 1 hour from Rocky Mountains
- Good food scene, outdoor recreation
- Better for young professionals
Edmonton
- Most affordable major city ($1,100-$1,400 for 1BR)
- Government jobs, healthcare, education, energy
- Lower cost of living than Calgary
- Great for families (good schools, larger homes)
- Excellent festivals (Fringe, Folk Fest)
Suburbs (Best Value)
- Airdrie, Okotoks, Cochrane (near Calgary) - family-friendly, cheaper housing
- Sherwood Park, St. Albert (near Edmonton) - excellent schools, safe communities
- Houses for $350k-$500k (vs $800k-$1.5M in Toronto/Vancouver)
Smaller Cities
- Red Deer - between Calgary/Edmonton, very affordable
- Lethbridge - warmest winters in Alberta, university town
- Grande Prairie - high wages, oil & gas jobs

Real-World Tax Examples

Example 1: $60,000 Salary (Entry-Level Professional)

Provincial Tax: $720 (10%)
Federal Tax: $6,200 (15-20.5%)
CPP: $3,362
EI: $996
Total Tax: $11,278 (18.8%)
Net Income: $48,722

vs Ontario: You'd pay $2,100 more in provincial tax = $46,622 net

Annual Savings: $2,100 + ~$1,200 in PST = $3,300/year total!

Example 2: $100,000 Salary (Mid-Career Professional)

Provincial Tax: $2,700 (10-12%)
Federal Tax: $14,300 (15-26%)
CPP: $3,868 (max)
EI: $1,049 (max)
Total Tax: $21,917 (21.9%)
Net Income: $78,083

vs Ontario: You'd pay $3,400 more in provincial tax = $74,683 net

vs Quebec: You'd pay $9,700 more in provincial tax = $68,383 net

Annual Savings: $3,400-$9,700 + ~$2,100 PST = $5,500-$11,800/year!

Example 3: $200,000 Salary (High Earner)

Provincial Tax: $9,600 (10-14%)
Federal Tax: $45,500 (15-33%)
CPP: $3,868 (max)
EI: $1,049 (max)
Total Tax: $60,017 (30.0%)
Net Income: $139,983

vs Ontario: You'd pay $13,000 more in provincial tax = $126,983 net

vs BC: You'd pay $15,200 more in provincial tax = $124,783 net

Annual Savings: $13,000-$18,000 + ~$3,000 PST = $16,000-$21,000/year!

Tax Filing in Alberta

You'll file both federal and Alberta provincial tax returns. Since Alberta has the simplest tax structure, filing is straightforward.

Best Tax Software for Albertans (2025)

Wealthsimple Tax - FREE
Completely free for simple and complex returns. Handles Alberta provincial credits automatically.
TurboTax Canada - $20-$60
User-friendly interface, good for investments and rental income. Alberta edition includes provincial credits.
H&R Block Canada - $20-$50
Solid choice for straightforward returns. Free version works for most people.
StudioTax - FREE
Completely free downloadable software. Good if you don't trust cloud-based systems.

Finding Affordable Tax Help in Alberta

Community Volunteer Tax Clinics: FREE for income under $35,000. Available at libraries and community centers.
Local Accountant: $150-$350 for straightforward return. Search "accountant Calgary" or "accountant Edmonton".
H&R Block / Liberty Tax: $200-$400 for in-person filing. Worth it if you have complex income (rental, business, investments).

Alberta Tax Credits & Deductions

Take advantage of these Alberta-specific benefits:

Alberta Family Employment Tax Credit: Up to $2,628 for families with children under 18
Alberta Climate Leadership Adjustment Rebate: Credits to offset carbon tax (income-tested)
Tuition and Education Tax Credits: Alberta offers provincial credits for post-secondary tuition
Medical Expenses: Can claim expenses over 3% of net income on provincial return
Charitable Donations: 10% credit on first $200, 21% on amounts over $200 (provincial)

Staying Tax-Compliant After Moving

When you move to Alberta, follow these steps to establish residency:

Get Alberta health care (register within 3 months of moving)
Get Alberta driver's license within 90 days
Register your vehicle in Alberta (if you own one)
Update your address with CRA (Canada Revenue Agency), banks, employer
File a moving tax return showing your change of province mid-year (if applicable)

Important: If you move mid-year, you'll file two provincial returns - one for your old province (Jan-move date) and one for Alberta (move date-Dec 31).

Other Low-Tax Provinces

Alberta isn't your only option for lower taxes, but it's the best. If Alberta doesn't fit, consider:

Saskatchewan - Low provincial tax (10.5-14.5%), but has 6% PST. Cheaper housing but fewer jobs than Alberta.
British Columbia - Beautiful nature, milder winters, but higher tax (5.06-20.5%) and 7% PST. Only worth it if you value ocean/mountains heavily.
Ontario - More jobs and diversity, but higher tax (5.05-13.16%) and 13% HST. Toronto/Ottawa have better amenities than Calgary/Edmonton.

See our full guide: Lowest Tax Provinces in Canada (2025)

Common Questions

Will Alberta add a sales tax in the future?

Unlikely but not impossible. Alberta's conservative government strongly opposes a PST. However, if oil revenue declines significantly, future governments could consider it. Historically, Albertans have rejected PST proposals. Any attempt would face major political resistance.

Do I have to pay federal taxes in Alberta?

Yes. Alberta has low provincial taxes, but you still pay federal income tax to CRA (same as every province). You also pay CPP and EI.

Is Alberta really cheaper overall, or do other costs offset the tax savings?

Alberta is genuinely cheaper for most people. While car insurance can be higher and you'll need winter tires, the combination of low provincial tax + no PST + cheaper housing usually results in $5,000-$15,000/year net savings vs Ontario or BC. Winters do increase heating costs.

What if I work remotely for a company in another province?

As an Alberta resident, you pay Alberta provincial tax regardless of where your employer is located. Your employer should update your province of employment to Alberta for payroll. You'll save money compared to staying in Ontario/BC.

How does Alberta afford low taxes?

Oil and gas royalties. Alberta collects billions annually from energy companies extracting resources. This revenue funds government services, allowing lower personal income taxes. When oil prices are high, Alberta runs surpluses. When prices drop, deficits can occur.

The Bottom Line

Alberta offers the lowest provincial tax rates in Canada (10-15%) and is the only province with no PST. For most earners, especially those making $60k+, Alberta provides substantial tax savings - typically $3,000-$20,000/year depending on income and spending.

Best for: Remote workers, energy/tech/healthcare professionals, high earners, small business owners, and anyone making $60k+ who can handle cold winters.

Run the numbers for your situation - but for most Canadians, Alberta is the most tax-friendly province.

Compare Alberta with other provinces: ON vs AB | QC vs AB | BC vs AB

Province rankings: Lowest Tax Provinces 2025 | Best Provinces for Remote Workers | Highest Tax Provinces 2025

Data Sources:

Canada Revenue Agency (CRA) - Federal tax rates, CPP, EI
Alberta Treasury Board and Finance - Provincial tax rates and credits

Verified for 2025 tax year • Last updated: November 2025

Tax rates for 2025 are typically published by CRA and provincial authorities in December 2024/January 2025. Rates should be reviewed annually in Q1. This calculator provides estimates based on official rates. For personalized tax advice, consult a certified Canadian accountant.