Alberta 2021 and 2020 Personal Marginal Income Tax Rates

Alberta Personal Income Tax Act s. 6.1, 8, 21, 44

The Federal tax brackets and personal tax credit amounts are increased for 2021 by an indexation factor of 1.010.

The indexation factors, tax brackets and tax rates have been confirmed to Canada Revenue Agency information.

As per the Alberta 2019 Budget, the Alberta brackets and tax credit amounts are not increased after 2019. If Alberta had not discontinued indexing, the Alberta tax brackets and personal amounts would have been increased for 2021 by an indexation factor of 1.013.

June 29, 2020 Recovery Plan indicates that the dividend tax credit rate for eligible dividends will be adjusted January 1, 2021 corresponding with the acceleration of the general corporate income tax rate reduction. The legislative change for this is included in Bill 35, Tax Statutes (Creating Jobs and Driving Innovation) Amendment Act, 2020, which received Royal Assent December 9, 2020. See the Alberta 2020 Recovery Plan for more information, or see Alberta dividend tax credits.

Tax Tip: read the article Understanding the Tables of Personal Income Tax Rates, especially if you are trying to compare the rates below to the marginal tax rates in the Basic Tax Calculator.

Alberta (AB) Personal Income Tax Brackets and Tax Rates
2021 Taxable Income	2021 Tax Rates	2020 Taxable Income	2020 Tax Rates
first $131,220	10%	first $131,220	10%
over $131,220 up to $157,464	12%	over $131,220 up to $157,464	12%
over $157,464 up to $209,952	13%	over $157,464 up to $209,952	13%
over $209,952 up to $314,928	14%	over $209,952 up to $314,928	14%
over $314,928	15%	over $314,928	15%

Combined Federal & Alberta Tax Brackets and Tax Rates
2021 Taxable Income	2021 Marginal Tax Rates				2020 Taxable Income	2020 Marginal Tax Rates
	Other Income	Capital Gains	Canadian Dividends			Other Income	Capital Gains	Canadian Dividends
	Other Income	Capital Gains	Eligible	Non-Eligible		Other Income	Capital Gains	Eligible	Non-Eligible
first $49,020	25.00%	12.50%	2.57%	15.86%	first $48,535	25.00%	12.50%	-0.03%	15.86%
over $49,020 up to $98,040	30.50%	15.25%	10.16%	22.18%	over $48,535 up to $97,069	30.50%	15.25%	7.56%	22.18%
over $98,040 up to $131,220	36.00%	18.00%	17.75%	28.51%	over $97,069 up to $131,220	36.00%	18.00%	15.15%	28.51%
over $131,220 up to $151,978	38.00%	19.00%	20.51%	30.81%	over $131,220 up to $150,473	38.00%	19.00%	17.91%	30.81%
over $151,978 up to $157,464	41.32%	20.66%	25.09%	34.63%	over $150,473 up to $157,464	41.22%	20.61%	22.35%	34.51%
over $157,464 up to $209,952(1)	42.32%	21.16%	26.47%	35.78%	over $157,464 up to $209,952(1)	42.22%	21.11%	23.73%	35.66%
over $209,952 up to $216,511(1)	43.32%	21.66%	27.85%	36.93%	over $209,952 up to $214,368(1)	43.22%	21.61%	25.11%	36.81%
over $216,511 up to $314,928	47.00%	23.50%	32.93%	41.16%	over $214,368 up to $314,928	47.00%	23.50%	30.33%	41.16%
over $314,928	48.00%	24.00%	34.31%	42.31%	over $314,928	48.00%	24.00%	31.71%	42.31%
Marginal tax rate for dividends is a % of actual dividends received (not grossed-up taxable 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 15%. For more information see Alberta dividend tax credits.
Alberta Basic Personal Amount
2021 Personal Amount	2021 Tax Rate				2020 Personal Amount	2020 Tax Rate
$19,369	10%				$19,369	10%
Federal Basic Personal Amount
2021 Personal Amount (1)	2021 Tax Rate				2020 Personal Amount (1)	2020 Tax Rate
$13,808	15%				$13,229	15%

(1) See the federal tax rates page for information on the federal personal amount increase.

The marginal tax rates above have been adjusted to reflect these changes.

Revised: May 18, 2025