On February 28, 2023, Travis Toews, Alberta's Finance Minister, announced the 2023 Alberta Budget. The Budget aims to make life more affordable for post-secondary students and families and grow the economy through various tax credits, targeting specific industries.
No changes were made to the existing provincial personal and corporate tax rates.
Crowe MacKay's tax experts summarize Alberta's new tax measures below. If you require assistance, connect with us in Alberta, British Columbia, Northwest Territories, or the Yukon.
Affordability Action Plan
Fuel Tax Relief
High oil prices over the past year have led to elevated fuel
prices. Not only are drivers seeing an increase in costs, high fuel
prices also raise the price of other goods, affecting all
Albertans. To assist with the rising fuel costs, the Government has
paused the collection of fuel taxes on gasoline and diesel until
June 30, 2023.
In July 2023, fuel tax rates for gasoline and diesel will be determined quarterly based on average oil prices, providing fuel tax relief to Albertans when oil prices are high.
Fuel Tax Relief Stages
|WTI Price (Average US$ per Barrel)||Fuel Tax Rate|
|$90.00 or more||0 cents/litre|
|$85.00 - $89.99||4.5 cents/litre|
|$80.00 - $84.99||9 cents/litre|
|$79.99 or less||13 cents/litre|
*Fuel tax relief applies to gasoline, diesel, marked gasoline, and marked diesel. Average oil prices are calculated based on the 20 trading days immediately preceding the 16th day of the last month prior to the start of the quarter.
Effective January 1, 2022, the Government resumed indexation of the personal income tax system. Personal income tax credit amounts and tax bracket thresholds are higher, by 2.3% in 2022 and 6.0% in 2023.
Budget 2023 Initiatives
Agri-Processing Investment Tax Credit
Budget 2023 introduced a new agri-processing tax credit that will help attract large-scale investment and foster growth and diversification in the agri-food sector. The Agri-Processing Investment Tax Credit will be worth 12% of eligible capital investments of at least $10 million made on or after February 7, 2023. As a non-refundable tax credit, the incentive will offset corporate income taxes payable in Alberta, allowing corporations to benefit from the credit once they are profitable and their facility is operational. Unused credits can be carried forward for up to 10 years.
Applications for the tax credit will be accepted in Spring 2023. More information on eligible expenditures and how to apply will be made available once program regulations are brought forward.
Charitable Donation Tax Credit
The charitable donations tax credit rate on the first $200 of contributions has increased from 10% to 60%. This increase encourages Albertans to contribute to charitable causes and will come into effect for 2023.
Adoption Expense Tax Credit
The Government offers a non-refundable tax credit equal to 10% of eligible adoption expenses up to an annual maximum. The maximum allowable expenses for the credit will be increased to $18,210 for 2023, matching the federal expense threshold. After 2023, this amount will be indexed annually at the same rate as the rest of the personal income tax system.
Education Property Tax
To improve affordability, the Government has limited the increase in the total education property tax requisition. For 2020-21 and 2021-22, the total requisition was frozen, and in 2022-23 it increased by 1.5%. With increasing inflation, the Government will freeze the education property tax requisition at the 2022-23 level of $2.5 billion for 2023-24.
Mill rates used to calculate the education property tax will decline in 2023. The residential/farmland rate will decrease from $2.65 to $2.56 per $1,000 of equalized assessment, while the non-residential rate will drop from $3.90 to $3.76 per $1,000 of equalized assessment.
The Alberta Child and Family Benefit (ACFB) program, which provides support to lower income families, was also indexed by 6.0% starting on January 1, 2023. Benefit amounts will rise by as much as:
- $121 for families with one child
- $198 for families with two children
- $260 for families with three children
- $307 for families with four or more children
Families will also benefit from the increase to phase-out thresholds, as the maximum benefit begins to be reduced at a higher income level. The ACFB will be indexed annually starting July 2024 for the 2024-25 benefit year.
Additional assistance measures are being proposed as follows:
- General plan to reduce daycare costs to $15 per day for 2023 and moving towards $10 per day in 2026.
- Providing all households making less than $180,000 with a $600 payment per child under 18 ($100/month for each child from January 2023 to June 2023).
Core measures proposed include putting a 2% cap on tuition increases starting in 2024 and introducing measures to reduce the student loan interest rate to prime. In addition, repayment assistance qualification income would increase from $25,000 to $40,000 and the grace period on student loan repayment would extend from six months post-graduation to 12 months.
Budget 2023 secures Alberta's future by building connectivity and improving access to essential services. It aims to support the province so all Albertans can enjoy the same quality of life.
Calgary and Edmonton Budget highlights can be found below. For Budget highlights in northern, central, and southern Alberta, view the 2023 Alberta Budget's regional highlights.
- $541 M over 3 years for Calgary LRT projects.
- $429.7 M over 3 years for Deerfoot Trail upgrades.
- $282 M over 3 years for the Springbank Off-Stream Reservoir Project.
- $166 M over 3 years for the Calgary Cancer Centre.
- $134.2 M over 3 years to complete the Calgary Ring Road.
- $84.7 M over 3 years for the Peter Lougheed Centre Emergency Department, Mental Health Intensive Care Unit and Laboratory Redevelopment.
- $63.6 M over 3 years for the Foothills Medical Centre.
- $59.2 M over 3 years for the Glenbow Museum revitalization.
- $57.1 M in 2024-25 to support the Bethany Care continuing care modernization project.
- $48.6 M over 3 years for the University of Calgary's Veterinary Medicine expansion.
- $22 M for the Office of the Chief Medical Examiner for a new facility to address population growth.
- $15 M over 3 years for the Repsol Sport Centre.
- $2.1 M in 2023-24 to expand the aviation program at Mount Royal University.
- $9.5 M over 3 years for a world-class gallery development at the TELUS Spark Science Centre.
- $7.5 M capital grant for the WinSport Day Lodge Renovation.
- $7.5 M in 2023-24 to accommodate a charter school program in Calgary.
- $5 M for Multidisciplinary Hub planning at the University of Calgary.
- $2.6 M for the Calgary Zoo Canadian Wilds redevelopment.
- $1.9 M for the SAM Centre (Calgary Stampede Foundation).
- $0.8 M for the Kids Can Catch Trout Pond at the Bow Habitat Station.
- $1.2 M for the University of Calgary's Faculty of Veterinary Medicine Lab, to ensure critical diagnostic capacity at a lower cost.
- $3 M over 3 years for planning the North Calgary/Airdrie Regional Health Centre.
- $50 M for Charter Hub and charter school expansion in
- $760 million over 3 years for Edmonton LRT projects.
- $634.1 million over 3 years for the new Edmonton hospital.
- $138.5 million over 3 years for the Yellowhead Trail freeway conversion project. $92.3 million over 3 years for the Terwillegar Drive expansion project.
- $90.6 million over 3 years for the Gene Zwozdesky Centre at Norwood.
- $63 million in 2024-25 to support the Good Samaritan Society continuing care modernization project.
- $35 million in 2024-26 for MacEwan University's new building for the School of Business.
- $22.4 million grant to eliminate the at-grade rail crossing at 50 Street.
- $7.9 million for the Misericordia Community Hospital modernization.
- $4 million in new funding in 2023-24 for repairs and upgrades to the Citadel Theatre.
- $3.2 million in additional planning funding for the Edmonton Law Courts.
- $3 million over 3 years for the continued planning of a new, standalone Stollery Children's Hospital.
- $3 million in 2025-26 for the Ray Gibbon Drive upgrade project.
- $2.5 million in 2023-24 with an additional $900,000 in 2024-25 and $300,000 in 2025-26 for the Designated Industrial Zone (DIZ) Pilot Project, in Fort Saskatchewan and Edmonton.
- $6 million over 3 years for the design of a new school in Glenridding Heights.
For more information on the 2023 Alberta Budget, please visit the Government of Alberta's website.
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.