Alberta's Tax Advantage: No PST, Highest Basic Personal Amount
Alberta has no provincial sales tax, the highest basic personal amount of any province ($22,769) and a new 8% first bracket. But there's a catch.
Why Alberta Wins
No Provincial Sales Tax
The only province with no PST. You pay just the Receipt5.0%Goods and services tax (GST) rate, the only sales tax in Alberta, 2026Actual · 2026SourceCanada Revenue AgencyDocumentGST/HST calculator (and rates)WhereTable of GST/HST rates by province and territory, "Alberta" row: 5%, type GSTPublishedApril 1, 2025CheckedSeptember 28, 2026Open the sourceAlberta, British Columbia, Manitoba, Quebec, Saskatchewan and the territories charge the 5% GST; four of those provinces add their own provincial sales tax, collected separately.All sourcesfederal.gst.rate.2026 federal GST. Other provinces add a provincial sales tax, or charge a harmonized sales tax of Receipt13.0%Harmonized sales tax (HST) rate, lowest of the five HST provinces (Ontario), 2026Actual · 2026SourceCanada Revenue AgencyDocumentGST/HST calculator (and rates)WhereTable of GST/HST rates by province and territory, "Ontario" row: 13%, type HSTPublishedApril 1, 2025CheckedSeptember 28, 2026Open the sourceThe HST combines the 5% federal GST with a provincial portion and is collected by the CRA under the federal Excise Tax Act. Nova Scotia's rate is 14% since April 1, 2025.All sourcesfederal.hst.lowest_rate.2026 to Receipt15.0%Harmonized sales tax (HST) rate, highest (New Brunswick, Newfoundland and Labrador, Prince Edward Island), 2026Actual · 2026SourceCanada Revenue AgencyDocumentGST/HST calculator (and rates)WhereTable of GST/HST rates by province and territory, "New Brunswick", "Newfoundland and Labrador" and "Prince Edward Island" rows: 15%, type HSTPublishedApril 1, 2025CheckedSeptember 28, 2026Open the sourceThe HST combines the 5% federal GST with a provincial portion and is collected by the CRA under the federal Excise Tax Act.All sourcesfederal.hst.highest_rate.2026.
Highest Basic Personal Amount of Any Province
Alberta's basic personal amount is $22,769, $6,317 higher than the federal amount of $16,452.
A Lower First Bracket
A new 8% rate on the first $60,000 of taxable income, introduced for 2025 by Bill 39, the Financial Statutes Amendment Act, 2025, and indexed to $61,200 for 2026. Before that, Alberta's lowest rate was 10%.
No Health Premium
Alberta charges no provincial health premium. Ontario charges one on top of its income tax, and B.C. funds health care partly through a payroll tax on employers.
Sources
- Canada Revenue Agency, T4127 Payroll Deductions Formulas, 122nd Edition, effective January 1, 2026 (Chapter 8, Table 8.2 Other rates and amounts for 2026, row AB, column Basic amount (22,769); Chapter 4, Step 5, Alberta: "If Form TD1AB is not filed, TCP is $22,769"; Chapter 2, Federal Basic Personal Amount (BPAF) Formula; Chapter 8, Table 8.1 Rates (R, V), income thresholds (A), and constants (K, KP) for 2026, rows AB A and V). Checked September 28, 2026.
- Government of Alberta, Personal income tax (Overview: "Alberta has the highest basic personal and spousal amounts among provinces."; Overview: "Effective January 1, 2025, we introduced a new personal income tax bracket of 8% on the first $60,000 of income."; Overview, Table 1. 2025 and 2026 tax brackets). Checked September 28, 2026.
- Canada Revenue Agency, Indexation adjustment for personal income tax and benefit amounts (Table "Amounts relating to non-refundable tax credits", row Basic personal amount, 2026 column (16,452 maximum; 14,829 base amount)). Checked September 28, 2026.
- Alberta King's Printer, Financial Statutes Amendment Act, 2025, SA 2025 c 9 (Bill 39), assented to May 15, 2025 (Section 2(3), page 5, replacing Alberta Personal Income Tax Act s. 6.1(1)(a)(i) and adding (i.1): 8.0% of taxable income up to $60 000, then 10.0%). Checked September 28, 2026.
- Canada Revenue Agency, Last year tax rates and income brackets (2025) (Section "Alberta rate: 2025" (8% on $0 to $60,000)). Checked September 28, 2026.
- Canada Revenue Agency, Current year tax rates and income brackets (2026) (Section "Alberta rate: 2026"). Checked September 28, 2026.
What an Albertan Pays in 2026
| Income | Income tax (federal and Alberta) | CPP and EI | Total |
|---|---|---|---|
| $50,000 | $5,877 | $3,582 | $9,459 |
| $75,000 | $12,269 | $5,370 | $17,639 |
| $100,000 | $19,772 | $5,770 | $25,542 |
| $150,000 | $36,773 | $5,770 | $42,542 |
| $200,000 | $56,377 | $5,770 | $62,146 |
One employee, computed with the CRA's 2026 method by the same engine as our calculator (how). Sales and property taxes are not included.
But Here's the Catch
That's how much more Ottawa collected in Alberta in 2024 than it spent here, per Albertan, children included: Receipt$19,000,000,000Net federal balance in Alberta (federal revenue collected in Alberta minus federal spending in Alberta), by calendar yearActual · 2024SourceStatistics CanadaDocumentTable 36-10-0450-01 Revenue, expenditure and budgetary balance - General governments, provincial and territorial economic accountsWhereAlberta; Federal general government; General governments surplus or deficit; 2007 to 2024 (vector v107650174, millions of dollars)PublishedNovember 28, 2025CheckedSeptember 28, 2026Open the sourceFederal general government on the national-accounts basis. Excludes the Canada Pension Plan, which the table treats as a separate level of government; includes Employment Insurance. Revenue is where federal taxes are collected (corporate income tax by place of business) and spending is where federal money is spent, so federal services delivered from outside Alberta count elsewhere. This is not Equalization, which is paid from federal general revenue. Negative in 2020, when Alberta was a net recipient.All sourcestransfers.alberta.net_federal_balance_history@2024 in all. Part of it funds Equalization. Alberta's government receives none of it; Quebec, which fought Energy East and rejected GNL Québec, takes Receipt51.2%Quebec's share of Equalization, 2026-27Actual · FY2026-27How we got itEqualization to Quebec ÷ total EqualizationInputstransfers.equalization.qc.fy2026-27, transfers.equalization.total.fy2026-27SourceDepartment of Finance CanadaDocumentMajor federal transfersWhereTable "Federal Support to Quebec" (millions of dollars), "Equalization" row, 2026-27 columnPublishedDecember 11, 2025CheckedSeptember 28, 2026Open the sourceSourceDepartment of Finance CanadaDocumentMajor federal transfersWhereTable "Federal Support to Provinces and Territories" (millions of dollars), "Equalization" row, 2026-27 columnPublishedDecember 11, 2025CheckedSeptember 28, 2026Open the sourceAll sourcestransfers.equalization.qc_share.fy2026-27 of it.
At $100,000, about $3,736 of the $14,425 you pay in federal income tax and EI is your share of what Ottawa collects here and doesn't spend here (25.9%Receipt25.9%Share of federal revenue collected in Alberta that Ottawa did not spend here, 2024Actual · 2024How we got itnet federal balance in Alberta ÷ federal revenue collected in Alberta, 2024Inputstransfers.alberta.net_federal_balance_history@2024, transfers.alberta.federal_revenue.2024SourceStatistics CanadaDocumentTable 36-10-0450-01 Revenue, expenditure and budgetary balance - General governments, provincial and territorial economic accountsWhereAlberta; Federal general government; General governments surplus or deficit; 2007 to 2024 (vector v107650174, millions of dollars)PublishedNovember 28, 2025CheckedSeptember 28, 2026Open the sourceSourceStatistics CanadaDocumentTable 36-10-0450-01 Revenue, expenditure and budgetary balance - General governments, provincial and territorial economic accountsWhereAlberta; Federal general government; General governments revenue; 2024 (vector v107650069, millions of dollars)PublishedNovember 28, 2025CheckedSeptember 28, 2026Open the sourceThe retirement scenario applies this share to your own federal income tax and EI premiums.All sourcestransfers.alberta.net_federal_balance.share_of_revenue.2024), and about $658 (4.6 cents of each federal dollarReceipt4.6%Equalization as a share of federal expenses, 2026-27Forecast · FY2026-27How we got itEqualization payments ÷ total federal expensesInputstransfers.equalization.total.fy2026-27, federal.expenses.fy2026-27SourceDepartment of Finance CanadaDocumentMajor federal transfersWhereTable "Federal Support to Provinces and Territories" (millions of dollars), "Equalization" row, 2026-27 columnPublishedDecember 11, 2025CheckedSeptember 28, 2026Open the sourceSourceDepartment of Finance CanadaDocumentSpring Economic Update 2026, Annex 1: Details of Economic and Fiscal ProjectionsWhereTable A1.9 The Expense Outlook, "Total expenses" row, 2026-2027 columnPublishedApril 28, 2026CheckedSeptember 28, 2026Open the sourceEqualization is paid from federal general revenue, so roughly this share of each federal dollar goes to it.All sourcestransfers.equalization.share_of_federal_expenses.fy2026-27) supports Equalization. And part of what you pay funds a province that fought your pipelines.
What the Median Albertan Pays Each Day
$25/day
Even with no PST and the highest basic personal amount, an Albertan earning the median employment income (Receipt$48,400Median employment income, Albertans aged 15 and over with employment income, 2024Actual · 2024SourceStatistics CanadaDocumentTable 11-10-0239-01 Income of individuals by age group, gender and income source, Canada, provinces and selected census metropolitan areasWhereAlberta; 15 years and over; Total - Gender; Employment income; Median income (excluding zeros); 2024 (vector v107680668)PublishedApril 29, 2026CheckedSeptember 28, 2026Open the sourceCanadian Income Survey, 2024 constant dollars. An individual measure, matching a calculator that taxes one person's income.All sourcesalberta.median_employment_income.2024, 2024) pays $25 a day in income tax, CPP and EI: 18.6% of everything they earn.
See Exactly What Ottawa Takes From You
Calculate your complete tax burden and see where every dollar goes, from debt interest to Equalization.
Frequently Asked Questions
What makes Alberta's taxes low?
Alberta has no provincial sales tax, the highest basic personal amount of any province ($22,769 in 2026), an 8% first bracket introduced in 2025, and no health premium or provincial payroll tax.
Does Alberta's tax advantage stay in Albertans' pockets?
Not all of it. Ottawa collects more in Alberta than it spends here: for a $100,000 earner, about $3,736 of federal income tax and EI is their share of that gap (25.9%, the share of federal revenue collected in Alberta that Ottawa didn't spend here in 2024), and about $658 (4.6%) supports Equalization, which Alberta's government doesn't receive.Receipt25.9%Share of federal revenue collected in Alberta that Ottawa did not spend here, 2024Actual · 2024How we got itnet federal balance in Alberta ÷ federal revenue collected in Alberta, 2024Inputstransfers.alberta.net_federal_balance_history@2024, transfers.alberta.federal_revenue.2024SourceStatistics CanadaDocumentTable 36-10-0450-01 Revenue, expenditure and budgetary balance - General governments, provincial and territorial economic accountsWhereAlberta; Federal general government; General governments surplus or deficit; 2007 to 2024 (vector v107650174, millions of dollars)PublishedNovember 28, 2025CheckedSeptember 28, 2026Open the sourceSourceStatistics CanadaDocumentTable 36-10-0450-01 Revenue, expenditure and budgetary balance - General governments, provincial and territorial economic accountsWhereAlberta; Federal general government; General governments revenue; 2024 (vector v107650069, millions of dollars)PublishedNovember 28, 2025CheckedSeptember 28, 2026Open the sourceThe retirement scenario applies this share to your own federal income tax and EI premiums.All sourcestransfers.alberta.net_federal_balance.share_of_revenue.2024Receipt4.6%Equalization as a share of federal expenses, 2026-27Forecast · FY2026-27How we got itEqualization payments ÷ total federal expensesInputstransfers.equalization.total.fy2026-27, federal.expenses.fy2026-27SourceDepartment of Finance CanadaDocumentMajor federal transfersWhereTable "Federal Support to Provinces and Territories" (millions of dollars), "Equalization" row, 2026-27 columnPublishedDecember 11, 2025CheckedSeptember 28, 2026Open the sourceSourceDepartment of Finance CanadaDocumentSpring Economic Update 2026, Annex 1: Details of Economic and Fiscal ProjectionsWhereTable A1.9 The Expense Outlook, "Total expenses" row, 2026-2027 columnPublishedApril 28, 2026CheckedSeptember 28, 2026Open the sourceEqualization is paid from federal general revenue, so roughly this share of each federal dollar goes to it.All sourcestransfers.equalization.share_of_federal_expenses.fy2026-27Receipt$0Equalization payment to Alberta, 2026-27Actual · FY2026-27SourceDepartment of Finance CanadaDocumentMajor federal transfersWhereTable "Federal Support to Alberta" (millions of dollars), "Equalization" row, 2026-27 column (shown as "-", nil)PublishedDecember 11, 2025CheckedSeptember 28, 2026Open the sourceReceives no Equalization payment this year.All sourcestransfers.equalization.ab.fy2026-27
Does Alberta have a sales tax?
No. Alberta is the only province with no provincial sales tax; Albertans pay only the 5% federal GST. Other provinces charge a provincial sales tax on top of the GST, or a harmonized sales tax (HST) of 13% to 15%.Receipt5.0%Goods and services tax (GST) rate, the only sales tax in Alberta, 2026Actual · 2026SourceCanada Revenue AgencyDocumentGST/HST calculator (and rates)WhereTable of GST/HST rates by province and territory, "Alberta" row: 5%, type GSTPublishedApril 1, 2025CheckedSeptember 28, 2026Open the sourceAlberta, British Columbia, Manitoba, Quebec, Saskatchewan and the territories charge the 5% GST; four of those provinces add their own provincial sales tax, collected separately.All sourcesfederal.gst.rate.2026Receipt13.0%Harmonized sales tax (HST) rate, lowest of the five HST provinces (Ontario), 2026Actual · 2026SourceCanada Revenue AgencyDocumentGST/HST calculator (and rates)WhereTable of GST/HST rates by province and territory, "Ontario" row: 13%, type HSTPublishedApril 1, 2025CheckedSeptember 28, 2026Open the sourceThe HST combines the 5% federal GST with a provincial portion and is collected by the CRA under the federal Excise Tax Act. Nova Scotia's rate is 14% since April 1, 2025.All sourcesfederal.hst.lowest_rate.2026Receipt15.0%Harmonized sales tax (HST) rate, highest (New Brunswick, Newfoundland and Labrador, Prince Edward Island), 2026Actual · 2026SourceCanada Revenue AgencyDocumentGST/HST calculator (and rates)WhereTable of GST/HST rates by province and territory, "New Brunswick", "Newfoundland and Labrador" and "Prince Edward Island" rows: 15%, type HSTPublishedApril 1, 2025CheckedSeptember 28, 2026Open the sourceThe HST combines the 5% federal GST with a provincial portion and is collected by the CRA under the federal Excise Tax Act.All sourcesfederal.hst.highest_rate.2026
Every figure links to its source. We use primary government data wherever it exists; think-tank, advocacy and news sources are labelled as such. Tax year 2026. View methodology →