What are Alberta's tax brackets and rates for 2026, and is the new 8% bracket law?
For 2026, Alberta taxes income at 8% up to $61,200, 10% to $154,259, 12% to $185,111, 13% to $246,813, 14% to $370,220 and 15% above that. The 8% bracket is law, deemed in force from January 1, 2025, and the thresholds rose 2% for 2026. With federal tax, the combined top rate is 48%.
What are Alberta's 2026 brackets next to 2025?
Alberta has six brackets for 2026, from 8% on the first $61,200 of taxable income to 15% above $370,220, and Alberta tax applies on top of federal tax canada.ca. The rates didn't change from 2025. Every threshold rose 2%
alberta.ca.
| Rate | 2026 taxable income | 2025 taxable income |
|---|---|---|
| 8% | Up to $61,200 | Up to $60,000 |
| 10% | $61,200.01 to $154,259 | $60,000.01 to $151,234 |
| 12% | $154,259.01 to $185,111 | $151,234.01 to $181,481 |
| 13% | $185,111.01 to $246,813 | $181,481.01 to $241,974 |
| 14% | $246,813.01 to $370,220 | $241,974.01 to $362,961 |
| 15% | Over $370,220 | Over $362,961 |
The 2025 column matches the CRA's prior year table canada.ca. The Alberta basic personal amount for 2026 is $22,769, indexed by the same 2.0% in the CRA payroll formulas
canada.ca. For the federal and other provincial amounts, see the basic personal amount page.
Is the 8% bracket law, and from what date?
Yes. The Financial Statutes Amendment Act, 2025 (Bill 39) became chapter 9 of the Statutes of Alberta, 2025, with royal assent on May 15, 2025. It rewrote section 6.1 of the Alberta Personal Income Tax Act to tax the first $60,000 at 8.0%, and it deems the change in force from January 1, 2025 kings-printer.alberta.ca. Alberta says the bracket saved individuals up to $750 in 2025
alberta.ca.
Two sources look like they disagree, and they don't. The CRA's 2025 rates page footnotes that the 8% bracket "was added on July 1, 2025" canada.ca. That's the payroll date. Withholding tables picked up the cut in July, and from July 1, 2025 the CRA payroll formulas used a prorated 6% rate so the year's withholding caught up
canada.ca. The 2025 T1 applies 8% to the first $60,000 for the whole year on Form AB428
canada.ca.
The thresholds index each year under section 44.2 of the Act, by the Alberta CPI change capped at 2% unless a different rate is prescribed kings-printer.alberta.ca. For 2026 the escalator came out at 2.0%, which is why every threshold and the basic personal amount rose by exactly that
canada.ca.
What are the combined federal and Alberta marginal rates for 2026?
Stack the federal brackets on the Alberta ones and an Alberta resident faces ten marginal rates for 2026, from 22% to 48% canada.ca. The federal bands themselves are on the federal tax brackets page.
| 2026 taxable income | Federal | Alberta | Combined |
|---|---|---|---|
| $0 to $58,523 | 14% | 8% | 22% |
| $58,523.01 to $61,200 | 20.5% | 8% | 28.5% |
| $61,200.01 to $117,045 | 20.5% | 10% | 30.5% |
| $117,045.01 to $154,259 | 26% | 10% | 36% |
| $154,259.01 to $181,440 | 26% | 12% | 38% |
| $181,440.01 to $185,111 | 29% | 12% | 41% |
| $185,111.01 to $246,813 | 29% | 13% | 42% |
| $246,813.01 to $258,482 | 29% | 14% | 43% |
| $258,482.01 to $370,220 | 33% | 14% | 47% |
| Over $370,220 | 33% | 15% | 48% |
These are bracket rates on ordinary income. They leave out the federal basic personal amount shrinking between $181,440 and $258,482, which nudges the effective federal rate up in that range (see the basic personal amount page), and they ignore dividends and capital gains, which have their own effective rates.
How much Alberta tax does $100,000 of taxable income pay in 2026?
A client with $100,000 of taxable income in 2026 owes $8,776 of Alberta tax before credits, and $6,954.48 after the basic personal amount alone. Their marginal rate is 30.5% combined.
| Step | Amount |
|---|---|
| 8% on the first $61,200 | $4,896.00 |
| 10% on the next $38,800 ($100,000 minus $61,200) | $3,880.00 |
| Alberta tax before credits | $8,776.00 |
| Basic personal amount credit: $22,769 x 8% | minus $1,821.52 |
| Alberta tax after that one credit | $6,954.48 |
The credit line uses 8% because section 4 of the Act sets the "specified percentage" at 8% for 2025 and later years, and the personal credits in section 8 are computed at that percentage kings-printer.alberta.ca. The CPP and EI credits come off the same way, so the real figure on Form AB428 will be lower. The CRA payroll formulas use the same constants: 10% of income minus $1,224 for this bracket gives the same $8,776
canada.ca.
Why Alberta credits fell to 8%, and what the supplemental credit gives back
Moving the lowest rate from 10% to 8% also cut the value of every Alberta credit tied to the specified percentage, so the same law added a supplemental tax credit in section 20.2: (A minus $4,800) x 0.25, where A is the total of the credits claimed under sections 8 to 10, 12 to 13.1, 18, 19 and 20.1 kings-printer.alberta.ca. In plain terms, it's 2% of those credit amounts above $60,000 for 2025, claimed on line 61545 of Form AB428 with Worksheet AB428
canada.ca.
Those sections are the personal amounts, the age, pension, medical, disability and adoption credits, student loan interest, CPP and EI, and credits transferred from a spouse. Donations (section 11), unused tuition (section 17) and the dividend credit (section 21) are not in A kings-printer.alberta.ca. The $4,800 is indexed, and the CRA's 2026 payroll formula uses $4,896
canada.ca.
| 2026 example | Amount |
|---|---|
| Credit amounts that count toward A | $75,000 |
| A: $75,000 x 8% | $6,000.00 |
| Minus the 2026 threshold | minus $4,896.00 |
| Excess | $1,104.00 |
| Supplemental credit: $1,104 x 0.25 | $276.00 |
The check: 2% of ($75,000 minus $61,200) is also $276. Most clients never reach it. It matters for a client claiming a spouse amount on top of their own basic amount plus large medical or disability amounts, where the 8% rate would otherwise cost them credit value.
Sources
My client moved to Alberta in August 2026. Do Alberta brackets apply to the whole year?
Yes, if they were resident in Alberta on December 31, 2026. Section 3 of the Alberta Personal Income Tax Act charges tax to an individual resident in Alberta on the last day of the calendar year, so Alberta rates apply to the full year's taxable income kings-printer.alberta.ca. A client with business income allocated to another province uses Form T2203 instead of Form AB428
canada.ca.
What rate does an Alberta trust pay?
A trust subject to section 122 of the federal Act pays Alberta tax at the top bracket rate, 15%, on all of its taxable income, with no graduated brackets kings-printer.alberta.ca.
Does Alberta payroll withholding include the supplemental credit?
Yes. The CRA's 2026 payroll formulas compute it as factor K5P: the Alberta personal credits plus the CPP and EI credits, minus $4,896, times 0.25 canada.ca. Medical and other credits claimed only on the T1 aren't in the payroll version, so the return can still produce a different amount.
Did Alberta change its rates for 2026?
No. The six rates are the same as 2025; only the thresholds moved, each up 2% alberta.ca. For the neighbouring rate tables, see the Ontario and BC pages.
General information for the tax year shown, not advice for a specific client. Confirm the facts before you file or remit.