Canada: Tax provisions in 2025 budget (Alberta)

Existing corporate income tax rates maintained, but various direct and indirect tax changes proposed

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February 28, 2025

Alberta’s Finance Minister on February 27, 2025, delivered the province’s budget. The budget maintains existing corporate income tax rates but proposes the following changes:

  • A new 8% individual (personal) income tax rate would apply to the first CA$60,000 of income starting January 1, 2025. This bracket would be adjusted by the "Alberta escalator" beginning in 2026.
  • The locomotive fuel tax would increase to 6.5 cents per liter from 5.5 cents, effective March 1, 2025.
  • A proposed supplemental personal tax credit would equal 2% on the amount of certain non-refundable tax credits claimed by an individual that exceeds CA$60,000.
  • The Alberta Climate Leadership Adjustment Rebate and the Alberta Family Employment Tax Credit would end after December 31, 2025.
  • Education property tax mill rates will rise to CA$2.72 for residential/farmland and CA$4.00 for non-residential properties per CA$1,000 of equalized assessment.

Read a February 2025 report prepared by the KPMG member firm in Canada

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