Alberta Personal Marginal Income Tax Rates 2025
Understanding Alberta’s income tax system is essential for managing your tax obligations efficiently. Alberta follows a progressive tax structure, meaning different portions of your income are taxed at different rates. The province has introduced a new tax bracket for 2025, lowering the tax rate to 8% on income up to $60,000 to provide tax relief for lower-income earners.
Alberta’s tax brackets for 2025 are indexed by 2%, following Bill 32, which ensures annual increases based on inflation. The basic personal amount for 2025 has also increased to $22,323, offering residents a larger tax-free threshold.
At higher income levels, combined federal and provincial tax rates increase progressively, reaching a top marginal rate of 48% for incomes above $362,962 in 2025. For 2024, the highest tax bracket starts at $355,846 with the same 48% top marginal tax rate.
By knowing your tax bracket and how provincial and federal tax rates interact, you can make informed financial decisions, plan RRSP contributions, and optimize your tax strategy. Use our Alberta Tax Calculator to quickly estimate your taxes for 2024 and 2025.
2025 Federal and Alberta Tax Brackets and Tax Rates
Note: The introduction of the 8% tax rate for income up to $60,000 is a new measure effective January 1, 2025.