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Tax Rates in Alberta

By Nizam Shajani

The 2021 combined personal federal and Alberta tax rates remain consistent with the prior year, although four of the tax brackets have had an increase in the dollar amount to qualify for the selected tax brackets with no increase at the top tax bracket. This is a positive for tax payers as more income will be taxed at the lower rates.

2021 Combined Federal and Alberta Tax Brackets and Tax Rates
    Other
Income
Capital
Gains
Canadian Dividends
From To Eligible Non-Eligible
$               – $         49,020 25.00% 12.50% 2.57% 15.86%
$     49,020 $         98,040 30.50% 15.25% 10.16% 22.18%
$     98,040 $       131,220 36.00% 18.00% 17.75% 28.51%
$   131,220 $       151,978 38.00% 19.00% 20.51% 30.81%
$   151,978 $       157,464 41.32% 20.66% 25.09% 34.63%
$   157,464 $       209,952 42.32% 21.16% 26.47% 35.78%
$   209,952 $       216,511 43.32% 21.66% 27.85% 36.93%
$   216,511 $       314,928 47.00% 23.50% 32.93% 41.16%
$   314,928 and up 48.00% 24.00% 34.31% 42.31%

It is good practice to update your tax plan each year based on the revised tax rates.

2020 Combined Federal and Alberta Tax Brackets and Tax Rates
    Other
Income
Capital
Gains
Canadian Dividends
From To Eligible Non-Eligible
$               – $         48,535 25.00% 12.50% 2.57% 15.86%
$     48,535 $         97,069 30.50% 15.25% 10.16% 22.18%
$     97,069 $       131,220 36.00% 18.00% 17.75% 28.51%
$   131,220 $       150,473 38.00% 19.00% 20.51% 30.81%
$   150,473 $       157,464 41.32% 20.66% 25.09% 34.63%
$   157,464 $       209,952 42.32% 21.16% 26.47% 35.78%
$   209,952 $       214,368 43.32% 21.66% 27.85% 36.93%
$   214,368 $       314,928 47.00% 23.50% 32.93% 41.16%
$   314,928 and up 48.00% 24.00% 34.31% 42.31%

 

Remember to pay the remittances on any 2020 salaries and bonuses that are paid by January 15, 2021.

Your tax planning and payroll calculations may require adjustments. Give us a call if you require a consultation.

The corporate tax rates remain consistent with where the rates left in 2020, and this will be the full year of the general corporate rate decrease that took effect in July 2020.

2021 Corporate Tax Rates
  Federal Alberta Combined
General 15.00% 8.00% 23.00%
Small Business 9.00% 2.00% 11.00%

 

2020 Corporate Tax Rates
  Federal Alberta Combined
General (Jan – June) 15.00% 10.00% 25.00%
General (July onward) 15.00% 8.00% 23.00%
Small Business 9.00% 2.00% 11.00%

 

Information from the Government of Alberta and Canada websites.

This information is for discussion purposes only and should not be considered professional advice. There is no guarantee or warrant of information on this site and it should be noted that rules and laws change regularly. You should consult a professional before considering implementing or taking any action based on information on this site. Call our team for a consultation before taking any action. © 2020 Shajani LLP