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should consult a qualified professional.
The Alberta government introduced new tax
brackets and rates effective October 1, 2015. Bill 2, the
legislation enacting the new tax brackets and rates, received Royal Assent on
June 29, 2015. The Alberta 2015 rates in the table below are
prorated,
and will be rates reflected on the 2015 income tax forms. This means that
the higher rates (see 2016 rates) will only affect 25% of the income earned in
2015, no matter when in the year the income was earned. The Alberta tax
bracket thresholds are not indexed for 2016, but will be indexed for 2017 and
later years.
The Federal tax rates for 2016 are as per Bill
C-2 tabled in December 2015. The tax brackets and personal amounts
were increased for 2016 by an indexation factor of 1.013. The indexation
factors, tax brackets and tax rates have been confirmed to Canada Revenue Agency
information.
The 2016 marginal tax rate for non-eligible dividends reflects the rate that is
in effect as per Alberta's October 2015 Bill 4.
Alberta (AB)
Personal Income Tax Brackets and Tax Rates
2016
Taxable Income
2016
Tax Rates
2015
Taxable Income
2015
Tax Rates
first $125,000
10%
first $125,000
10.00%
over $125,000 up to
$150,000
12%
over $125,000 up to
$150,000
10.50%
over $150,000 up to
$200,000
13%
over $150,000 up to
$200,000
10.75%
over $200,000 up to
$300,000
14%
over $200,000 up to
$300,000
11.00%
over $300,000
15%
over $300,000
11.25%
Combined Federal
& Alberta Tax Brackets and Tax Rates
2016
Taxable Income
2016
Marginal Tax Rates
2015
Taxable Income
2015
Marginal Tax Rates
Other
Income
Capital
Gains
Canadian
Dividends
Other
Income
Capital
Gains
Canadian
Dividends
Eligible
Non-Eligible
Eligible
Non-Eligible
first $45,282
25.0%
12.50%
-0.03%
13.33%
first $44,701
25.00%
12.50%
-0.03%
12.84%
over $45,282 up to
$90,563
30.5%
15.25%
7.56%
19.77%
over $44,701 up to $89,401
32.00%
16.00%
9.63%
21.10%
over $90,563 up to $125,000
36.0%
18.00%
15.15%
26.20%
over $89,401 up to $125,000
36.00%
18.00%
15.15%
25.82%
over $125,000 up to
$140,388
38.0%
19.00%
17.91%
28.54%
over $125,000 up to
$138,586
36.50%
18.25%
15.84%
26.41%
over $140,388 up to $150,000
41.0%
20.50%
22.05%
32.05%
over $138,586 up to $150,000
39.50%
19.75%
19.98%
29.95%
over $150,000 up
to $200,000
42.0%
21.00%
23.43%
33.22%
over $150,000 up
to $200,000
39.75%
19.88%
20.33%
30.25%
over $200,000 up to $300,000
47.0%
23.50%
30.33%
39.07%
over $200,000 up to $300,000
40.00%
20.00%
20.67%
30.54%
over $300,000
48.0%
24.00%
31.71%
40.24%
over $300,000
40.25%
20.13%
21.02%
30.84%
Marginal tax rate for dividends is a % of actual
dividends received (not grossed-up amount).
Marginal tax rate for capital gains is a % of total capital gains
(not taxable capital gains).
Gross-up rate for eligible dividends is 38%, and for non-eligible dividends is
17% in 2016, 18% in 2015.
2016 non-eligible dividend rates reflect the dividend tax credit
rate as per Alberta's October 2015 Bill 4.
For more information see Alberta dividend tax
credits.
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