Alberta's small-business tax rate is 11% combined in 2026 — a 2% Alberta provincial rate plus the 9% federal small-business rate — on the first $500,000 of active business income earned by an eligible Canadian-controlled private corporation (CCPC). Active business income above that limit is taxed at 23% combined (8% Alberta + 15% federal).
The rate at a glance
| Income band (2026 tax year) | Federal | Alberta | Combined |
|---|---|---|---|
| Active business income up to $500,000 (CCPC, SBD) | 9% | 2% | 11% |
| Active business income above $500,000 (general) | 15% | 8% | 23% |
The $500,000 small-business limit is shared among associated corporations and can be ground down where a CCPC and its associated group earn more than $50,000 of passive investment income in the prior year — the limit disappears entirely at $150,000 of passive income.
Alberta charges no PST and no provincial payroll or health tax, so the 11%/23% corporate rates are the whole provincial tax story for most Alberta small businesses, beyond the standalone AT1 return filed alongside the federal T2.
Full guide
For the AT1 filing obligation, deadlines, worked examples and how Alberta compares with BC, see the Alberta Corporate Tax Guide. To estimate your own liability, use the corporate tax calculator, or browse the Alberta taxes FAQ hub.
How RN Canada helps
RN Canada is an Edmonton-headquartered accounting and advisory firm that prepares both the federal T2 and the Alberta AT1 for owner-managed corporations and applies the small-business rate correctly across associated companies and passive-income grind-downs. Our founder, Ozgur Duymaz, holds a Ph.D. in accounting and finance and is a CPA (Canada), ACCA (UK) and CMA (US). See our tax return preparation service.
Frequently asked questions
11% combined — Alberta's 2% provincial small-business rate plus the federal 9% small-business rate — on the first $500,000 of active business income earned by an eligible Canadian-controlled private corporation (CCPC) in the 2026 tax year.
23% combined: Alberta's 8% general rate plus the federal 15% general rate. Only active business income above the $500,000 small-business limit is taxed at this higher rate — the first $500,000 keeps the 11% small-business rate.
$500,000 of active business income per year, matching the federal limit. The limit is shared among associated corporations and is ground down once a CCPC and its associated group earn more than $50,000 of passive investment income in the prior year, disappearing entirely at $150,000.
On the combined rate, no — Alberta's 11% matches British Columbia's 11%. Where Alberta pulls ahead is the general rate above the limit (23% versus BC's 27%) and the absence of PST or a provincial payroll/health tax.
No. The 11% combined small-business rate applies only to a CCPC earning active business income within the $500,000 limit. A corporation that is not a CCPC — for example one controlled by non-residents or a public company — pays the 23% general rate on all its active business income.
Yes. Our corporate tax calculator estimates federal-plus-Alberta corporate income tax across both the small-business and general bands using 2026 rates.