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Alberta
Tax Rates   ->   Current Marginal Tax Rates -> Alberta Personal Income Tax Rates

Alberta 2021 and 2020 Personal Marginal Income Tax Rates

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

Please read the article Understanding the Tables of Personal Income Tax Rates.

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, tabled October 20, 2020 but is not yet passed as of November 13, 2020. See the Alberta 2020 Recovery Plan for more information, or see Alberta dividend tax credits.

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
Eligible Non-Eligible 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 42.32% 21.16% 26.47% 35.78% over $157,464 up to $209,952 42.22% 21.11% 23.73% 35.66%
over $209,952 up to $216,511 43.32% 21.66% 27.85% 36.93% over $209,952 up to $214,368 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) 2020 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.

Copyright © 2002 Boat Harbour Investments Ltd.

Revised: January 05, 2021

 

Copyright © 2002 Boat Harbour Investments Ltd. All Rights Reserved.  See Reproduction of information from TaxTips.ca

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