Alberta’s Finance Minister Nate Horner has presented the province’s budget for 2025 on 27 February 2025.
Alberta is facing its first deficit since 2020-21, with no clear plan yet to return to a surplus. The province anticipates a CAD 5.2 billion shortfall for the fiscal year beginning 1 April, followed by additional deficits of CAD 2.4 billion and CAD 2 billion over the next two years.
Corporate income tax
The 2025 budget does not change the province’s existing corporate income tax rate of 8%, making it 30% lower than any other province in Canada.
Education property tax
Education property tax rates will increase to CAD 2.72 for residential and farmland properties and CAD 4.00 for non-residential properties per CAD 1,000 of assessment.
Locomotive fuel tax
Starting 1 March 2025, the locomotive fuel tax will rise from 5.5 cents to 6.5 cents per litre.
New personal income tax bracket
Starting 1 January 2025, a new 8% personal income tax rate will apply to the first CAD 60,000 of earnings. The new personal income tax bracket will save Albertans up to CAD 750 in 2025. Taxpayers earning less than CAD 60,000 will see their personal income taxes fall by 20%.
Supplemental personal tax credit
A proposed supplemental personal tax credit would provide an additional 2% on the portion of certain non-refundable tax credits claimed by an individual over CAD 60,000. This credit would be adjusted by the “Alberta escalator” beginning in 2026.
