Alberta Income Tax Calculator 2026

Alberta introduced a new bottom tax bracket for 2026: 8% on the first $60,000 of provincial taxable income, reduced from the previous 10% rate. Rates rise to 10% from $60,000 to $151,234, then 12%, 13%, 14%, and 15% on income above $362,962. The provincial basic personal amount of $21,423 is the highest of any province in Canada, significantly reducing provincial tax for low- and middle-income earners.

Alberta's top provincial rate of 15% is the third lowest in Canada (after Nunavut and Yukon), and the province levies no provincial sales tax (PST). Combined with the 33% federal top rate, Alberta's combined top marginal rate is approximately 48% — among the lowest of any province. For a worker earning $80,000, the combined federal and Alberta provincial marginal rate in 2026 is approximately 30.5%.

The 2026 introduction of the 8% bracket is meaningful for workers earning under $60,000: compared to the prior 10% rate, it reduces provincial tax by up to $1,200 per year for those who fully benefit from the new bracket. Alberta also has no provincial surtax and no health premium, making the provincial tax calculation straightforward relative to provinces like Ontario.