No surprises for Alberta taxpayers in the budget for 2017-2018

 

Not much has changed on the Alberta tax front for 2017-2018. The budget was released on March 16, 2017, and not a single new personal tax measure was included. Thresholds for taxable income are going up 1.3%, but other than that – there’s not a whole lot to tell you. Just three things are noteworthy for the coming tax year.

1.Tuition and education stay consistent…for now

Unlike most other provinces, Alberta has remained neutral following the federal governments decision to eliminate the education amount for the next tax year. Most provinces have followed suit, and some have also gotten rid of the tuition fee deduction – but Alberta has stayed the course on both. Tuition fees and the education amount will remain in effect in Alberta for 2017, holding steady at $727 per month for full time students and $218 for those studying part time. These amounts are up 1.3% from $717 and $215 respectively.

2.Saving energy and saving money

The Alberta government is getting serious about energy efficiency, rolling out a series of new programs in April 2017 that offer homeowners and businesses rebates on a wide variety of energy efficient items. A solar panel program has been announced, and although it’s been confirmed that rebates will be offered, it’s still unclear what the amounts will be or how they will be refunded – either paid out directly, or claimed on tax returns. As soon as we know, you’ll know too.

3.Small business gets a break and general corporate rates hold steady

In order to help small business owners better absorb the new provincial carbon tax, the government reduced corporate tax rates for small businesses from 3% to 2% on January 1, 2017. No further changes were announced with the release of this year’s budget. The general corporate tax rate remains unchanged– holding at 12%

Alberta Personal Tax Rates
2015 2016 2017
10% of taxable income up to $125,000 10% of taxable income up to $125,000 10% of taxable income up to $126,625
10.5% of taxable income between $125,000 and $150,000 12% of taxable income between $125,000 and $150,000 12% of taxable income between $126,625 and $151,950
10.75% of taxable income between $150,000 and $200,000 13% of taxable income between $150,000 and $200,000 13% of taxable income between $151,950 and $202,600
11% of taxable income between $200,000 and $300,000 14% of taxable income between $200,000 and $300,000 14% of taxable income between $202,600 and $303,900
11.25% of taxable income in excess of $300,000 15% of taxable income in excess of $300,000 15% of taxable income in excess of $303,900