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Last updated: March 31 2015
2015 Alberta Budget Increases Taxes for Most Taxpayers
The 2015 Alberta budget was presented on March 26, 2015.
The provincial government has been struggling to find ways to replace revenue lost due to recent reductions in oil prices. Even with increases in user fees and income taxes, the 2015-2016 budget deficit is projected to be approximately $5 billion.
Almost all tax increases will be borne by individuals with incomes in excess of $50,000. No corporate tax changes were introduced.
Health Care Levy
A new health care premium is being implemented as of July 1, 2015 for taxpayers with income over $50,000. The maximum annual premium of $1,000 will be payable by taxpayers with taxable incomes over $130,800. See the following table for details.
| Taxable Income | Health Care Contribution Levy Payable |
| $0 - $50,000 | $0 |
| $50,000 - $70,000 | (Taxable Income – $50,000) x 5% to a maximum of $200 |
| $70,000 - $90,000 | $200 + (Taxable Income – $70,000) x 5% to a maximum of $400 |
| $90,000 - $110,000 | $400 + (Taxable Income – $90,000) x 15% to a maximum of $600 |
| $110,000 - $130,000 | $600 + (Taxable Income – $110,000) x 15% to a maximum of $800 |
| Over $130,000 | $800 + (Taxable Income – $130,000) x 25% to a maximum of $1,000 |
No More Single Tax Bracket
New tax brackets will be introduced starting in 2016 for taxpayer with taxable income over $100,000. The new 10.5% rate for 2016 will be increased to 11% for 2017 and 11.5% for 2018 and later years. An additional 0.5% tax on income over $250,000 will apply to tax years 2016, 2017 and 2018. See the following table for details.
| Taxable Income | 2015 | 2016 | 2017 | 2018 | 2019 and later |
| $0 - $100,000 | 10% | 10% | 10% | 10% | 10% |
| $100,001 - $250,000 | 10% | 10.5% | 11% | 11.5% | 11.5% |
| Over $250,000 | 10% | 11% | 11.5% | 12% | 11.5% |
Charitable Donation Credit Rate
The 21% credit rate applicable for 2007 to 2015 will be reduced to 12.75% starting in 2016.
New Refundable Supplement for Working Families
The Alberta Working Family Supplement is a new refundable tax credit available starting in July 2016. The credit will be available to families with working income between $2,760 and $41,222. The benefit will be $1,100 for families with one child plus $550 for each additional child to a maximum of 3 additional children. The credit will be clawed back when family income exceeds $25,500.
Enhanced Alberta Family Employment Tax Credit
Starting July 1, 2016, recipients of the existing Alberta Family Employment Tax Credit will receive a greater benefit as income increases over the $2,760 threshold as the benefit rate will increase from 8% to 11%. In addition the threshold at which the benefits begin decreasing will increase from $36,778 to $41,250.
Other Tax Changes
The budget also includes immediate increases to gasoline and diesel taxes as well as tobacco taxes, and increases to insurance premiums tax on April 1, 2016.
