This July, hard-working Albertans will keep more money in their pockets thanks to a new tax cut that could save families up to $1,500 per year.
The new eight per cent personal income tax bracket was announced in Budget 2025 and applies to income up to $60,000, a drop from the previous 10 per cent rate.
Most taxpayers will start to see the benefits of the tax cut this month as payroll withholdings are adjusted.
That means more money on each paycheque, and more to spend on what matters most.
Individual taxpayers will save up to $750 in 2025, while two-income families will see savings of up to $1,500.
In total, the tax cut is expected to save Albertans $1.2 billion in 2025, rising to $1.4 billion by 2028.
This gives Albertans greater freedom to spend, save or invest as they choose — not as government decides.
“We know times have been tight, and we’ve been working on ways to ease some of the pressure people are feeling right now. We promised to help with a cut to personal income taxes, and we delivered on that promise in Budget 2025 with a new eight per cent personal income tax bracket. Now Albertans will start to see that reflected in their paycheques, as more money can go to the things that individuals and families think are important,” said Premier Danielle Smith.
With low personal and corporate income taxes, a low fuel tax and no provincial sales tax, Albertans pay significantly less in overall taxes than people in other provinces.
In 2025-26, Albertans and Alberta businesses are expected to pay at least $20.1 billion less in taxes than they would under any other provincial tax regime.
“Hard-working Albertans deserve this tax cut, and it’s great to see it happen. Keeping promises really matters, and it’s great that taxpayers will be saving money on their paycheques in Alberta,” said Kris Sims, Alberta director of the Canadian Taxpayers Federation.
Lower taxes, less pressure and more freedom — that’s what the eight per cent tax bracket delivers for Alberta families.
** With information from the Alberta Government
Sign up to get the latest local news headlines delivered directly to your inbox every afternoon.
Send your news tips, story ideas, pictures, and videos to news@centralalbertaonline.com.
CentralAlbertaOnline encourages you to get your news directly from your trusted source by bookmarking this page and downloading the CentralAlbertaOnline app.