Alberta Provincial Budget

The 2014 Alberta provincial budget was tabled on March 6, 2014. This budget shows an operational surplus of $2.6 billion and the government projects an operational surplus for the following three years of its financial plan.

Like the 2013 provincial budget, this budget introduces no new income tax measures.

2014 Changes Already in Place

As in most provinces, most provincial personal amounts are indexed. The indexation factor for 2014 is 1.011 (i.e. a 1.1% increase). Alberta’s basic personal amount, the highest in Canada, is increased to $11,138. As Alberta has only one tax bracket, indexation does not affect income tax levels. 

As a consequence of the federal change to the gross-up of small business dividends announced in the 2013 federal budget, the provincial dividend tax credit rate for such dividends needed to be adjusted. In December 2013, the Alberta government announced a change to the Alberta dividend tax credit for small business dividends. The credit is reduced from 3.5% to 3.1% of the taxable dividend. The result is that the marginal tax rate for small business dividends remains constant for 2014.