Indexing the personal income tax system will save taxpayers an estimated $55 million in 2016 and a further $70 million in 2017.

Alberta’s personal income tax system is adjusted annually with inflation, ensuring the value of Albertans’ tax credits is not eroded over time and that taxpayers are not pushed into higher brackets by inflation.
 
As Albertans file their 2016 tax returns, they will notice their tax credit amounts were increased by 1.3 per cent, raising their basic personal and spousal amounts from $18,214 to $18,451 for 2016.
 
In 2017, Albertans will see these amounts— already the highest in Canada—increase by another 1.3 per cent to $18,690.
 
“Alberta’s exemption amounts and tax credits mean a typical family of four can earn up to $51,196 this year before paying any provincial income tax," said Minister of Finance, Joe Ceci. "That’s more money in every family’s pocket and is an example of how our government is working to make life affordable for Albertans.”
 
With the highest basic personal and spousal amounts, no sales tax and no payroll tax, Albertans benefit from the lowest overall taxes among the provinces.
 
This chart, courtesy Finance Alberta, helps explain the tax differences between 2016 and 2017. The chart assumes tax amounts include the Alberta Child Benefit and Alberta Family Employment Tax Credit.  For two income families, income and RRSP/RPP contributions are split 60/40 between the two spouses. RRSP/RPP contributions are, respectively, $0, $6,000, $10,000 and $25,000. Children in the chart are assumed to be six and 12 years-old.

 

 

2016

2017

Employment Income of $35,000 for one income family with two children

     Provincial income tax

(1,774)

(2,147)

Employment income of $75,000 for one income family with two children

     Provincial income tax

2,683

2,455

Employment income of $100,000 for two income family with two children

     Provincial income tax

4,776

4,676

Employment income of $200,000 for two income family with two children

     Provincial income tax

13,182

13,082

 

For the 2016 tax year, a one-income couple earning $75,000 with two children in Alberta will pay $3,555 less in total provincial taxes than they would in British Columbia and $1,380 less than they would in Saskatchewan.
 
In 2017, the same couple will pay $4,094 (BC) and $1,825 (SK) less in total provincial taxes, respectively.
 
Indexation of Alberta's personal income tax system is based on the year-over-year change in the Alberta Consumer Price Index for the 12-month period that ends September 30.

More Local News

Gale Katchur grabs third mayoral term

Incumbent Gale Katchur has been voted mayor of Fort Saskatchewan.

Unofficial Fort Saskatchewan election results

Here's a final look at the Fort Saskatchewan municipal election results.

Mayor runner-up Arjun Randhawa releases statement

Arjun Randhawa came up just short in Fort Saskatchewan's mayoral race.

Unofficial Strathcona County election results

Here's a final look at the Strathcona County municipal election results.

Unofficial Morinville election results

Here's a final look at the Morinville municipal election results.

Unofficial Bon Accord election results

Here's a final look at the Bon Accord municipal election results.

Unofficial Redwater election results

Here's a final look at the results for the Redwater municipal election.

STARS responds to serious collision near Morinville

STARS Air Ambulance was called out to a serious accident at the Highway 2 and Cardiff Road intersection.

Unofficial Gibbons election results

Here's a final look at the Gibbons municipal election results.

Unofficial Bruderheim election results

Here's a final look at the Bruderheim municipal election results.

Unofficial Sturgeon County election results

Here's a final look at the Sturgeon County municipal election results.

Strong winds coming to the region

Expect to see a few displaced election signs after high winds gusts roll through the area tonight.

Early morning fire spotted by cyclist "could have been worse"

A house fire woke neighbours early this morning (October 16) near downtown Fort Saskatchewan.

RCMP call for clear windows as frosty mornings approach

Police are reminding motorists to make sure they have a clear view before they hit the road.

Fort firefighters busy with medical emergencies

The fire season in the Fort Sask area has been minimal compared to last summer, but one category is up.

85 per cent of us aren't getting enough exercise

Most of us aren't getting enough exercise.

Fort Sask hosts up-and-coming skiers from across province

Area cross-country skiers were out in full force this weekend.

Man dies in highway collision near Sherwood Park

A 36-year-old man has died after a collision by Sherwood Park.

Mailout baffles candidates and residents

There's a puzzling mailout making it's way to Fort Saskatchewan homes and businesses.

Paving company to redo bumpy Highway 21

Fort residents won't have to test their suspension for much longer.

DiscoverWestman.com is Westman's only source for community news and information such as weather and classifieds.

Search the Biz Guide

DEPRESSION, ANXIETY & ADDICTION RECOVERY PROGRAM, SEPT 25, 7 P.M

25 September 2017 7:00 pm - 04 December 2017 7:00 pm

FSPC Chapel





Habitat for Humanity seeks Landscaping Volunteers!

17 October 2017 8:30 am - 21 October 2017 4:00 pm

HFH Prefab Shop, Edmonton





Curling: Archbishop McDonald C vs. JP II A

17 October 2017 3:45 pm - 5:15 pm

Ottewell Curling Club, Edmonton





Junior Boys Volleyball: Mother Margaret Mary vs. Fort Sask High

17 October 2017 5:00 pm - 6:30 pm

Fort Saskatchewan High School, Fort Saskatchewan





Junior Girls Volleyball: Fort Sask High vs. Eastglen

17 October 2017 5:00 pm - 6:30 pm

Eastglen High School, Edmonton





Senior Boys Volleyball: Sturgeon vs. Fort Sask high

18 October 2017 5:00 pm - 6:30 pm

Fort Saskatchewan High School, Fort Saskatchewan





Senior Boys Volleyball: Austin O'Brien vs. JP II

18 October 2017 5:00 pm - 6:30 pm

St. John Paul II Catholic High School, Fort Saskatchewan





Login