On October 27th, 2015, Alberta Finance Minister Joe Ceci
announced the 2015 Alberta Budget. The Budget does not provide for
any tax rate changes over and above those previously announced in
June, 2015, as summarized below. Also noted below are highlights of
some of the other tax measures contained in the Budget.
Changes to Personal Tax Rates
Effective 2015, new personal tax brackets were introduced. For
2015 the highest Alberta tax rate is 11.25% and for 2016 and later
years the highest Alberta tax rate is 15%. The Alberta personal tax
rates are summarized below. Note that these amounts do not include
the applicable federal rates.
In order to maintain integration with recent federal corporate
tax changes, the Alberta Government announced that it will
introduce amendments to the calculations for the Alberta ineligible
and eligible dividend tax credits. The Alberta Government expects
to announce these amendments for ineligible dividends in the Fall
of 2015. The Alberta Government is currently reviewing the dividend
tax credit on eligible dividends and expects to announce the
results of this review in its 2016 Budget.
Changes to Corporate Tax Rates
The Alberta general corporate tax rate was increased from 10% to
12% effective July 1, 2015 and the small business tax rate remains
at 3%. Note that these amounts do not include the applicable
Other Tax Measures
We also note the following items from the 2015 Alberta
Alberta Child Benefit. Beginning in July of 2016, families may
receive this benefit of up to $1,100 for one child and then up to
$550 for each of the next three children. This benefit is reduced
as family net income exceeds $25,500 and is fully phased out once
family net income reaches $41,220.
Alberta Family Employment Tax Credit. This benefit will begin
in July of 2016 and is aimed at supporting working families with
children. The rate at which benefits are phased in on family
working income will be increased from 8% to 11% and the phase-out
threshold on family net income will also be increased from $36,778
Job Creation Incentive Program. This is a two-year program that
will provide grants to employers for net new employment created
after January 1, 2016. The grants can be up to $5,000 for each new
job, with an employer being eligible for up to $500,000 in total
The Health Care Contribution Levy introduced earlier this year
was not mentioned in this budget.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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