Alberta Tax Rates
There are no changes to the tax rates for 2019. However, the taxable income thresholds have been increased by the indexation factor of 2.4 per cent. Alberta personal income tax rates in 2019 are 10% for the taxable income under $131,220 (2018 was under $128,145), 12% for the taxable income between $131,220 and $157,464, 13% for the taxable income between $157,464 and $209,952, 14% for the taxable income between $209,952 and $314,928, 15% for the taxable income in excess of $314,928. This is the last year that the taxable income thresholds will be indexed. Effective 2020 and in subsequent years they will be frozen at the 2019 levels.
Alberta Personal Amounts
For 2019 the personal amounts have also been increased by 2.4 per cent.
Alberta’s basic personal amount and spouse or common-law partner and amount for an eligible dependent in 2019 is $19,369 (2018 was $18,915). This is the last year that the personal amounts will be indexed. Effective 2020 and in subsequent years they will be frozen at the 2019 levels.
The education amount was eliminated federally for 2017, but it can still be claimed provincially. For Alberta provincial purposes, the full-time education amount for 2019 is $753 per month and the part-time amount is $226 per month. Effective 2020, both the provincial amount for tuition fees and the provincial education amounts will be eliminated. However, taxpayers will still be able to claim unused amounts from the previous years.
Climate Action Incentive
Instead of the provincial carbon tax in 2020 Albertans will get a refundable tax credit called the Climate Action Incentive which taxpayers will be able to claim on their 2019 tax returns.
The Climate Action Incentive is available to everyone regardless of their income.
Alberta is one of five provinces in which the federal government imposes a carbon tax and provides the Climate Action Incentive.
The base amount for a single adult or a first adult in a couple is $444. Second adult in a couple or a first child of a single parent gets the next $222. Each child under the age of 18 at the end of 2019 and not already included before, gets the next $111. Baseline example: a family of four will get $888 of Climate Action Incentive.
Dividend Tax Credit
For 2019, the provincial tax credit for non-eligible dividends has been increased from 2.16 per cent up to 2.18 per cent. The rate for eligible dividends remains at 10 per cent.
Corporate Tax Rates
The general corporate tax rate on income not eligible for the small business deduction is being reduced from 12 per cent down to 8 per cent over a three-year period. The first reduction to 11 per cent was implemented effective July 1, 2019. The next reduction to 10 per cent was scheduled to take effect from January 1, 2020. The small business corporate tax rate remains at 2 per cent.
Alberta Child and Family Benefit
Effective July 2020 to June 2021 program year, the Alberta Child Benefit and the Alberta Family Employment Tax credit will be merged into a single benefit renamed the Alberta Child and Family Benefit.