Budget 2025: Snip. Taxes cut for Albertans
As the province faces headwinds from tariff threats that could cause inflation, Alberta’s government is ensuring Alberta families have more money in their pockets to support their families. By fulfilling a promise to cut personal income taxes, Albertans will take more money home on every paycheque.
Starting this year, Alberta taxpayers will benefit from a new eight per cent personal tax bracket on income up to $60,000, down from the previous rate of 10 per cent. When this new tax cut takes effect, taxpayers will save up to $750 in 2025, while two-income families will see savings of up to $1,500, which will help them and their families with the cost of groceries, housing, utility bills or other priorities.
"Over the past few years Albertans have faced an unprecedented cost of living crisis, largely due to the irresponsible actions of the federal Liberal government. That's why Alberta's government is taking action to cut personal income taxes for two million hard-working Albertans - fulfilling our campaign promise - so that Albertans can keep more of their hard-earned dollars to help support their families." — Danielle Smith, Premier of Alberta
“By fast-tracking this new eight per cent tax bracket, Albertans can keep more of their hard-earned money this year. This is just one more way we’re helping Albertans find their way forward during turbulent economic times.” — Nate Horner, President of Treasury Board and Minister of Finance
Overall, this personal income tax cut is expected to save Albertans $1.2 billion in 2025, with savings rising to $1.4 billion in 2028. Most taxpayers will start to see the benefit of the tax cut on their paycheques after July 1, when payroll withholdings are adjusted.
With low personal and corporate income taxes, low fuel tax and no sales tax, Albertans and Alberta businesses generally pay lower overall taxes than those in other provinces. In 2025-26, Albertans and Alberta businesses would pay at least $20.1 billion less in taxes than they would if Alberta had the same tax system as any other province.
Nate Horner, President of Treasury Board and Minister of Finance