Alberta Income Tax Calculator 2025
Calculate your combined federal and Alberta provincial income tax for 2025. See why Alberta has the lowest tax burden of any Canadian province.
$
= C$6,667 / month
Alberta has the lowest provincial income tax in Canada. No PST, no surtax, no health premium. BPA: $21,003.
Common incomes:
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Annual Take-Home
C$0
Federal Tax
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Alberta Provincial Tax
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Effective Rate
Alberta Provincial Tax Brackets
| AB Band | Income in Band | Rate | Tax |
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Complete Tax Summary
How to Use This Alberta Income Tax Calculator
Enter your annual gross income. The calculator shows your federal tax, Alberta provincial tax, CPP and EI to give you your full take-home pay. Alberta has no provincial sales tax, no surtax and no health premium โ the cleanest provincial tax system in Canada.
The Formula
Federal Tax = progressive federal rates โ BPA credit ($16,129 ร 15%)
Alberta Tax = progressive AB rates (10%โ15%) โ AB BPA credit ($21,003 ร 10%)
CPP = 5.95% on earnings $3,500โ$71,300
EI = 1.66% on earnings up to $65,700
Alberta Tax = progressive AB rates (10%โ15%) โ AB BPA credit ($21,003 ร 10%)
CPP = 5.95% on earnings $3,500โ$71,300
EI = 1.66% on earnings up to $65,700
Example
Kyle in Calgary, $100,000 income in 2025:
Federal tax: $57,375 ร 15% + $42,625 ร 20.5% โ BPA credit = $13,244 โ $2,419 = $10,825
Alberta tax: $100,000 ร 10% โ ($21,003 ร 10%) = $10,000 โ $2,100 = $7,900
CPP: $4,034 | EI: $1,091
Total deductions: $23,850 | Take-home: $76,150/year ($6,346/month)
Federal tax: $57,375 ร 15% + $42,625 ร 20.5% โ BPA credit = $13,244 โ $2,419 = $10,825
Alberta tax: $100,000 ร 10% โ ($21,003 ร 10%) = $10,000 โ $2,100 = $7,900
CPP: $4,034 | EI: $1,091
Total deductions: $23,850 | Take-home: $76,150/year ($6,346/month)
Extended
Alberta Tax Advantage
See Alberta's tax advantage vs other provinces and full bracket breakdown
Alberta provincial bracket breakdown for your income.
| Band | Rate | Your Income in Band | Tax | Cumulative Tax |
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Alberta vs other provinces โ combined tax at your income. Alberta's advantage is shown.
| Province | Combined Tax | CPP+EI | Total Deductions | Take-Home | vs Alberta |
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Frequently Asked Questions
What is Alberta's provincial income tax rate for 2025?
Alberta has a progressive provincial tax system for 2025 starting at a flat 10% on the first $148,269. Rates then increase: 12% on $148,269โ$177,922, 13% on $177,922โ$237,230, 14% on $237,230โ$355,845, and 15% on income above $355,845. Alberta has the highest threshold before higher rates kick in among all provinces, making it very attractive for middle-income earners.
Does Alberta have a sales tax?
No. Alberta is the only Canadian province with no Provincial Sales Tax (PST). Combined with low income tax, this makes Alberta's overall tax burden the lowest of any province for most earners. Only the federal GST (5%) applies to purchases in Alberta. This effectively gives Albertans 5โ8% more purchasing power compared to provinces with HST.
What is Alberta's Basic Personal Amount?
Alberta's provincial Basic Personal Amount for 2025 is $21,003 โ the highest in Canada. This is a non-refundable tax credit equal to $21,003 ร 10% = $2,100.30. The high BPA means Albertans pay no provincial tax on the first $21,003 of income, giving a significant advantage over provinces with lower BPAs.
Is Alberta still the best province for taxes in Canada?
For most income levels, yes. Alberta has the highest BPA, no PST, low provincial rates, and no health premiums or surtaxes. On a $100,000 income, an Albertan pays roughly $3,000โ$5,000 less in provincial tax than someone in Ontario or BC. However, Alberta's public healthcare, education and services quality differs from other provinces, and property taxes can vary significantly by city.
How does CPP work for Alberta employees?
CPP (Canada Pension Plan) is federal and applies the same to all provinces including Alberta: 5.95% on earnings between $3,500 and $71,300, plus CPP2 at 4% on earnings between $71,300 and $81,900. EI is also federal: 1.66% on earnings up to $65,700. These are the same regardless of which province you live in.