Alberta's personal income tax brackets for 2026 are 8%, 10%, 12%, 13%, 14% and 15%, with every threshold raised 2% from 2025. The 8% bracket now covers the first $61,200 of taxable income, and the top 15% rate starts above $370,220. Budget 2026 made no change to the rates.
The 2027 thresholds have not been published yet. What is already law is the rule that will set them: under the Alberta Personal Income Tax Act, the 2027 increase defaults to the lesser of 2% and Alberta inflation, unless the government prescribes a different percentage by regulation before January 1, 2027. This post is the reference: the 2026 table, the 2025 figures it replaced, the credits, worked examples, and the edge cases that matter for Alberta owner-managers and employees.
What changed for 2026, and who it affects
- What: every Alberta bracket threshold and most non-refundable credit amounts rose by 2% for 2026. The province states that "in 2026, thresholds and credit amounts will rise by 2%."
- Rates: unchanged. The 8% bracket introduced on January 1, 2025 stays, and the five higher rates (10% to 15%) are the same as in 2025.
- When: the 2026 tax year, January 1 to December 31, 2026. These are the brackets that apply when 2026 personal returns are prepared in spring 2027.
- Who: every individual resident in Alberta on December 31, 2026: employees, sole proprietors, and owner-managers paying themselves salary or dividends. Federal tax is a separate calculation with its own brackets.
Sources: Government of Alberta: Personal income tax and Alberta King's Printer: Alberta Personal Income Tax Act (consolidated to December 11, 2025).
Alberta tax brackets 2026 (with 2025 for comparison)
| Alberta rate | 2026 taxable income | 2025 taxable income (prior year) |
|---|---|---|
| 8% | $0 to $61,200 | $0 to $60,000 |
| 10% | $61,200.01 to $154,259 | $60,000.01 to $151,234 |
| 12% | $154,259.01 to $185,111 | $151,234.01 to $181,481 |
| 13% | $185,111.01 to $246,813 | $181,481.01 to $241,974 |
| 14% | $246,813.01 to $370,220 | $241,974.01 to $362,961 |
| 15% | Over $370,220 | Over $362,961 |
These are marginal rates: each rate applies only to the slice of income inside its band. Moving into a higher bracket never raises the tax on income below it.
Source: Government of Alberta: Personal income tax, Table 1.
Alberta basic personal amount 2026 and other credits
Alberta non-refundable credits are worth the credit amount multiplied by 8%, the lowest Alberta rate (section 4 of the Act sets this "specified percentage" at 8% for 2025 and later years). Alberta's basic personal amount remains the highest of any province.
| Credit (TD1AB 2026) | 2026 amount | Income test |
|---|---|---|
| Basic personal amount | $22,769 (2025: $22,323) | None |
| Spouse or common-law partner | Up to $22,769 | Reduced dollar for dollar by the spouse's net income |
| Eligible dependant | Up to $22,769 | Reduced dollar for dollar by the dependant's net income |
| Age amount (65 or older) | $6,345 | Full below $47,234 net income; phased out by $89,534 |
| Pension income amount | $1,753 or the pension received, if less | None |
| Disability amount | $17,563 | Requires an approved Form T2201 |
| Caregiver amount | $13,180 | Full if dependant's net income is $20,956 or less; nil at $34,136 |
| Infirm dependant age 18 or older | $13,180 | Full if dependant's net income is $8,707 or less; nil at $21,887 |
The basic personal amount is therefore worth $22,769 × 8% = $1,821.52 of Alberta tax for 2026, up from $1,785.84 for 2025.
Source: CRA: Form TD1AB 2026, Alberta Personal Tax Credits Return.
The Alberta supplemental tax credit
When Alberta added the 8% bracket in 2025, it also cut the value of credits from 10% to 8%. To protect people with very large credit claims, section 20.2 of the Act adds a supplemental credit equal to 25% of the amount by which total Alberta non-refundable credits exceed $4,800. In practice, credit amounts above $60,000 (8% × $60,000 = $4,800) still earn credit at an effective 10%. Most taxpayers never reach it; it matters in years with large medical, disability-transfer or tuition claims.
Worked examples: Alberta tax on common incomes in 2026
Alberta tax only, after the basic personal amount and no other credits. CPP, EI and federal tax are separate.
| Taxable income | Alberta tax before credits | Less basic personal credit | Alberta tax | Marginal Alberta rate |
|---|---|---|---|---|
| $50,000 | $4,000.00 | $1,821.52 | $2,178.48 | 8% |
| $100,000 | $8,776.00 | $1,821.52 | $6,954.48 | 10% |
| $150,000 | $13,776.00 | $1,821.52 | $11,954.48 | 10% |
| $200,000 | $19,839.71 | $1,821.52 | $18,018.19 | 13% |
| $300,000 | $33,371.58 | $1,821.52 | $31,550.06 | 14% |
How the $100,000 line works: $61,200 × 8% = $4,896, plus ($100,000 − $61,200) × 10% = $3,880, for $8,776 before credits. Under the 2025 brackets and basic amount, the same $100,000 would have produced $7,014.16 of Alberta tax, so the 2% indexation is worth about $60 at this income if pay did not change.
How Alberta's 2027 tax brackets will be set
Bill 32, the Financial Statutes Amendment Act, 2024 (No. 2), replaced Alberta's old inflation indexing with the "Alberta escalator" in section 44.2 of the Alberta Personal Income Tax Act. The consolidated Act defines it, for each calendar year after 2025, as:
- a percentage prescribed by regulation for the year on or before January 1 of that year, which cannot be negative; or, if none is prescribed,
- the lesser of 2% and the change in the Alberta Consumer Price Index for the 12 months ending September 30 of the prior year, rounded to one decimal, and never below 0%.
The escalator applies to the bracket thresholds and to the credit amounts above. So if no other percentage is prescribed and Alberta inflation to September 2026 is 2% or higher, the 2027 thresholds will be the 2026 figures × 1.02. On that default, the top of the 8% bracket would rise to about $62,400 and the basic personal amount to about $23,200. These are illustrations of the rule, not published figures: use the official 2027 table once the province and the CRA release it.
The cap is why critics call the system "bracket creep". In any year Alberta inflation runs above 2%, the thresholds rise less than prices, so the same real income drifts into higher brackets.
Already law for 2027: one Alberta caregiver credit
The Fiscal Measures Statutes Amendment Act, 2026 (Bill 17) received Royal Assent on March 26, 2026. From January 1, 2027, it merges the caregiver and infirm dependant credits into a single Alberta Caregiver Credit with the same amount and phase-out threshold as the current caregiver credit. It can now be claimed for an infirm spouse, but it is no longer available for healthy parents or grandparents over 65 who live with you. Families claiming the caregiver amount for a non-infirm parent in 2026 should expect to lose it in 2027.
Source: Government of Alberta: Implementing Budget 2026.
Edge cases that change the answer
Moved to or from Alberta during 2026
Provincial tax follows residence on December 31. If you moved into Alberta in 2026 and were living here on December 31, Alberta brackets apply to the whole year's taxable income. If you left Alberta before year end, the brackets of your new province apply instead.
Business income earned in another province
The single-province calculation applies only if you had no business income from a permanent establishment outside Alberta. A sole proprietor with an establishment in BC or Saskatchewan allocates business income between provinces on CRA Form T2203, and each province taxes its share.
Salary versus dividends for owner-managers
Salary and non-eligible dividends from your corporation land in the same Alberta brackets, but dividends carry the Alberta dividend tax credit and are paid out of income already taxed in the corporation. Where your personal income sits against the $61,200 and $154,259 thresholds is one of the inputs when choosing the 2026 mix. Corporate rates are covered in our Alberta small business tax rate guide.
Payroll withholding versus the year-end calculation
Employers withhold Alberta tax using the TD1AB claim amount and the CRA payroll tables. Withholding is an estimate; the final Alberta tax is calculated on the 2026 return using the brackets above. Employees with large credits not on their TD1AB, or with a second employer, should expect a difference. Our Alberta payroll guide covers the employer side.
What to do before December 31, 2026
- Owner-managers: decide the 2026 salary and dividend split before year end, using the 2026 thresholds, and keep the corporation's year-end bonus timing in mind.
- Employees and payroll teams: collect a 2027 TD1AB from staff whose credit situation changes, particularly anyone affected by the caregiver change.
- Families with an elderly parent at home: 2026 is the last year the caregiver amount applies to a healthy parent or grandparent aged 65 or older.
- Everyone: treat any 2027 Alberta figure you see before the official release as an estimate.
Frequently asked questions
What are the Alberta tax brackets for 2026?
8% up to $61,200, 10% to $154,259, 12% to $185,111, 13% to $246,813, 14% to $370,220, and 15% above $370,220.
What is the Alberta basic personal amount for 2026?
$22,769, worth $1,821.52 of Alberta tax at the 8% credit rate.
Are the Alberta tax brackets for 2027 out yet?
Not as of November 13, 2026. By default they will rise by the lesser of 2% and Alberta inflation, unless the government prescribes a different percentage before January 1, 2027.
Did Alberta change its tax rates in Budget 2026?
No. Budget 2026 made no change to personal income tax rates. Its personal tax change is the new Alberta Caregiver Credit starting in 2027.
How do Alberta's brackets compare with BC's?
BC's lowest rate is 5.60% on a much smaller first bracket, and BC froze its 2027 thresholds at 2026 levels; see BC tax brackets 2027 and our Alberta vs BC business tax comparison.
RN Canada prepares personal and corporate returns for Alberta owner-managers from our Edmonton office. If you want your 2026 salary and dividend mix checked against these brackets, contact us or see our Alberta services.