Alberta remains the most tax-friendly province in Canada for most income levels, and 2026 strengthens that position. The province’s six tax brackets are indexed by 2% for 2026, and this is the first full indexed year of the 8% bottom bracket introduced in 2025 — which now covers income up to $61,200, saving roughly $750 a year for anyone earning at or above that threshold compared to the old 10% rate.
Alberta also offers the highest basic personal amount in Canada at $22,769 for 2026 — nearly $6,300 more than the federal BPA of $16,452. Combined with no provincial sales tax, no payroll health tax, and the country’s highest top-bracket threshold among the provinces, an Albertan earning $75,000 keeps meaningfully more take-home pay than someone on the same salary in Ontario, BC, or anywhere in Atlantic Canada.
At the top end, Alberta’s 15% rate doesn’t kick in until income exceeds $370,220, producing a top combined federal-provincial marginal rate of 48% — tied with Yukon for the lowest top rate in the country, and reached at a far higher income than in most provinces (Nova Scotia hits 54% at just $154,000-and-change of provincial threshold). For incorporated professionals and high earners, this gap is a major reason Alberta continues to attract interprovincial migration.
With the federal bottom rate at 14% for all of 2026, and thanks to the $22,769 BPA, Albertans start paying provincial tax later than residents of any other province — the first $22,769 of income attracts no Alberta tax at all. Use our Alberta Tax Calculator to see exactly what you’ll pay in 2026.
2026 Federal and Alberta Tax Brackets and Tax Rates
2025 Federal and Alberta Tax Brackets and Tax Rates
Note: Alberta indexes its brackets and credits annually under Bill 32; the 2026 indexation factor is 2%.
Note: The 8% rate on the first bracket was introduced January 1, 2025 and applies to income up to $61,200 in 2026.
Note: Top combined federal + Alberta marginal rate: 48% on income above $370,220.
Sources: CRA — 2026 Tax Rates and Income Brackets · KPMG Personal Tax Rates 2026
Last Updated: July 17th, 2026