Alberta -> Alberta Budgets -> 2015 Budget
Alberta Budget October 27, 2015
Tax Increases- The locomotive fuel tax rate will rise 4 cents.|
- Tobacco tax rates will rise $5 per carton of cigarettes.
- Insurance premiums tax rates will rise 1 percentage point.
A provincial sales tax will not be introduced.
Alberta Child Benefit (ACB)
The new Alberta Child Benefit will begin in July 2016, with a benefit of up to $1,100 for one child, and up to $550 for each of the next three additional children. The maximum benefit will be received by families with net income of up to $25,500, after which the benefit is reduced. The benefit is fully phased out once family net income reaches $41,220. Benefits under the ACB will be indexed annually for inflation, beginning in July 2017.
The refundable Alberta Family Employment Tax Credit will be enhanced beginning in July 2016. The rate at which benefits are phased in will increase from 8% to 11%, and the phase-out threshold will be increased from $36,778 to $41,250. Benefits under the AFETC are indexed annually for inflation. The new phase-out threshold of $41,250 will also be indexed, beginning in July 2017.
Alberta Job Creation Incentive Program
Grants of up to $5,000 for each new job will be provided to employers for net new employment created after January 1, 2016. Employers will be eligible for up to $500,000 in total support. Insurable earnings data will be used to calculate the value of the grant. Grants will be made available on a first-come, first-served basis to eligible employers, with a cap of $89 million per calendar year. At the end of 2 years, the program may be extended or revised as needed.
Personal Income Tax
For the previous changes made to Alberta's personal income tax rates, see the June 2015 Bill 2 information
Dividend Tax Credit for Non-eligible Dividends
Since the federal government has revised the gross-up rate for non-eligible dividends, this automatically changes the Alberta taxation of these dividends. Amendments will be introduced in fall 2015 to revise the non-eligible dividend tax credit calculation so that small business shareholders will not pay higher taxes on dividend income in 2016.
Dividend Tax Credit for Eligible Dividends
The July 1, 2015 increase to the corporate income tax rate to 12% from 10% means that Alberta's tax on eligible dividends is no longer fully integrated. A review of the dividend tax credit for eligible dividends is being done, and the results of the review will be announced in Budget 2016.
Charitable Donations Tax Credit
Donations over $200 continue to be eligible for a credit of 21%.
Revised: September 19, 2017
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