The provincial government's promised income tax cut is expected to begin benefiting Albertans next month.
Alberta taxpayers will benefit from a new eight per cent personal tax bracket on income up to $60,000, which is 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, according to the provincial government. Most taxpayers will start to see the impact of the tax cut on their paycheques after July 1, when payroll withholdings are adjusted.
“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," said Nate Horner, president of treasury board and minister of finance
Kris Sims, Canadian Taxpayers Federation's Alberta director, said Premier Danielle Smith "keeping her promise to cut Alberta’s income tax is great news," because it means huge savings for most working families.
"Families are fighting to afford basics right now, and if they can save more than $1,500 per year thanks to this big tax cut, that would cover a month’s rent or more than a month's worth of groceries,” said Sims.
Overall, this personal income tax cut is expected to save Albertans a combined $1.2 billion in 2025, with savings rising to $1.4 billion in 2028.
“Albertans know best where their hard-earned dollars are needed most. By leaving more money in their pockets, we’re helping ensure families can meet their unique needs and achieve greater prosperity for a brighter future," said Nathan Neudorf, minister of affordability and utilities.
Premier Smith added: "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."
Smith's United Conservative Party campaigned on an income tax cut during the spring 2023 election.
