Alberta residents in 2026 face the lowest provincial tax rates in Canada, with a combined federal + Alberta marginal rate that runs from 22% at the bottom to 48% on income above $370,220. The big change is recent: effective January 2025, Alberta introduced a new 8% bottom-bracket rate on the first ~$60,000 of taxable income, replacing the prior flat 10% rate. Alberta also has the most generous basic personal amount in Canada at $22,769 for 2026, meaning roughly $22,769 + the federal BPA of $16,452 = ~$39,000 of total taxable income before Alberta tax kicks in.
Quick answer: Combined federal + Alberta marginal rates for 2026 range from 22% (on income above the BPA floor) to 48% at the very top. The new Alberta 8% bottom-bracket rate covers the first $61,200 of taxable income. The Alberta BPA is $22,769 — the highest in Canada.
What this means: Alberta’s combination of low provincial rates and high BPA means low- and middle-income earners pay materially less than in any other province. The new 8% rate adds roughly $1,200/year of tax savings for a typical $61K earner compared to the prior 10% flat rate.
What to do next: Calculate combined federal + Alberta tax based on your taxable income. Calculate Alberta tax →
Federal income tax brackets, 2026 tax year
The same federal brackets apply to residents of every province. The bottom federal rate was reduced from 15% to 14% effective July 2025 (Bill C-4); the 2026 tax year is the first full year at 14%.
| Taxable income range | 2026 federal rate |
|---|---|
| Up to $58,523 | 14% |
| $58,523 to $117,045 | 20.5% |
| $117,045 to $181,440 | 26% |
| $181,440 to $258,482 | 29% |
| Over $258,482 | 33% |
The federal basic personal amount (BPA) for 2026 is $16,452 for taxable income up to $181,440. The BPA is reduced gradually for incomes above that level, reaching $14,829 at incomes of $258,482 or more.
Alberta provincial brackets, 2026 tax year
Alberta moved away from a flat-rate provincial tax in 2015 and again in 2025. The 2025 budget introduced the new 8% bracket on the first ~$60,000, displacing the flat 10% rate that had applied below the existing 12% threshold. For 2026 with 2% indexation:
| Taxable income range | 2026 Alberta rate |
|---|---|
| Up to $61,200 | 8% |
| $61,200 to $154,259 | 10% |
| $154,259 to $185,111 | 12% |
| $185,111 to $246,813 | 13% |
| $246,813 to $370,220 | 14% |
| Over $370,220 | 15% |
Alberta’s 2026 basic personal amount is $22,769 (up from $22,323 in 2025; some publications still cite the prior amount). Combined with the federal BPA of up to $16,452, an Alberta resident pays no Alberta tax on the first $22,769 of taxable income and very little federal tax until their income exceeds the federal BPA.
Combined federal + Alberta marginal rates (2026 tax year)
| Taxable income range | Approximate combined marginal rate |
|---|---|
| Up to $58,523 | 22% (14% federal + 8% Alberta) |
| $58,523 to $61,200 | 28.5% (20.5% federal + 8% Alberta) |
| $61,200 to $117,045 | 30.5% (20.5% federal + 10% Alberta) |
| $117,045 to $154,259 | 36% (26% federal + 10% Alberta) |
| $154,259 to $181,440 | 38% (26% federal + 12% Alberta) |
| $181,440 to $185,111 | 41% (29% federal + 12% Alberta) |
| $185,111 to $246,813 | 42% (29% federal + 13% Alberta) |
| $246,813 to $258,482 | 43% |
| $258,482 to $370,220 | 47% (33% federal + 14% Alberta) |
| Over $370,220 | 48% (33% federal + 15% Alberta) |
Worked example
Sam earns $80,000 of taxable income in Alberta in 2026:
| Component | Tax |
|---|---|
| Federal: $58,523 at 14% | $8,193 |
| Federal: $21,477 at 20.5% | $4,403 |
| Federal BPA credit (14% × $16,452) | −$2,303 |
| Net federal tax | $10,293 |
| Alberta: $61,200 at 8% | $4,896 |
| Alberta: $18,800 at 10% | $1,880 |
| Alberta BPA credit (8% × $22,769) | −$1,822 |
| Net Alberta tax | $4,954 |
| Total federal + Alberta tax | ~$15,247 |
| Average rate ($15,247 / $80,000) | ~19.1% |
| Marginal rate on next $1,000 | 30.5% |
Compared to the same $80,000 income in Ontario (~21.3% average, $17,000 tax), Sam saves roughly $1,800/year on the same income. The gap widens at higher incomes.
Frequently asked questions
- What are the Alberta tax brackets for 2026?
- Six brackets: 8% up to $61,200, 10% to $154,259, 12% to $185,111, 13% to $246,813, 14% to $370,220, and 15% above $370,220.
- When did Alberta introduce the 8% bracket?
- Effective January 1, 2025. It replaced the prior flat 10% rate on the bottom band. The change provides roughly $1,200/year of tax savings for a typical $61K earner.
- What is the Alberta basic personal amount?
- $22,769 for 2026 (up from $22,323 in 2025). It is the highest BPA in Canada and combined with the federal BPA shields about $39,000 of total income from tax.
- Does Alberta have a surtax?
- No. Alberta has a multi-bracket progressive system with no surtax or provincial health premium on top.
- What is the top combined federal + Alberta rate?
- 48% on taxable income above $370,220, combining the 33% federal rate with Alberta’s top 15% provincial rate.
- Are Alberta tax brackets indexed?
- Yes. The 2026 indexation factor is 2.0%, applied to the 2025 thresholds. The 8% rate itself is statutory, not indexed.
- Is Alberta still the lowest-tax province?
- For most income bands, yes. Alberta’s combination of low rates and a $22,769 BPA produces lower combined tax than any other province for most taxpayers, with the gap widening at the middle-to-upper bands.