2024 Alberta provincial budget tax highlights
On Feb. 29, the Alberta government released its 2024 budget. The following are highlights of the key tax measures.
Personal tax measures
The Alberta government intends to introduce a new personal income tax bracket of eight per cent on the first $60,000 of income. Maximum taxpayer savings are estimated to be $760 once the tax cut is fully implemented.
The current personal combined income tax rates for 2024 are outlined below:
|
Personal (combined) federal and Alberta top marginal tax rates |
|
|
|
Rate |
|
Interest/regular income |
48.0% |
|
Capital gains |
24.0% |
|
Eligible dividends |
34.31% |
|
Non‑eligible dividends |
42.31% |
Alberta is Calling attraction bonus
This one‑time initiative will provide a $5,000 refundable tax credit to individuals working in eligible occupations who move to Alberta after the program start date in April 2024 and meet additional eligibility criteria. These requirements will include working full time in a specified occupation, filing their 2024 taxes in Alberta and living in the province for at least 12 months.
Corporate tax measures
No corporate income tax rate changes were announced in this year’s budget. The current corporate income tax rates for 2024 are outlined below:
|
|
Small business corporations |
General corporations |
||
|
|
Rate |
Threshold |
Non‑M&P |
M&P |
|
Alberta |
2.0% |
$500,000 |
8.0% |
8.0% |
|
Combined federal and AB |
11.0% |
$500,000 |
23.0% |
23.0% |
Other tax measures
Vaping tax
Alberta will join the existing federal‑provincial coordinated vaping tax framework.
Tobacco tax
Effective March 1, 2024, the tax on cigarettes will increase by 2.5 cents to 30 cents per cigarette, and the tax on smokeless tobacco will rise by 7.5 cents to 35 cents per gram. This brings the tax rates in line with neighbouring provinces.
Electric vehicle tax
Targeted for Jan. 1, 2025, the budget will introduce an annual tax of $200 on electric vehicles. This fee will be paid when owners register their vehicles and is in addition to the existing registration fee.
Land title registration levy
Alberta will replace the existing variable charges with a new land titles registration levy set at $5 per $5,000 of value for property transfers and mortgage registrations. The legislation to implement these changes will be tabled in spring 2024.
Tourism levy
On or after Oct. 1, 2024, the collection and remittance obligations of the tourism levy will apply to online brokers when they collect payment from the purchaser on all types of temporary accommodation, including short‑term rentals and hotels booked through their marketplace. Temporary accommodation providers will continue to collect and remit the tourism levy on bookings where they collect payment directly from the purchaser.
Short-term rental hosts are required to collect and remit the applicable tourism levy on stays booked before Oct. 1, 2024.
Next steps
Contact your Baker Tilly advisor to learn more about how we can help you navigate the complexities of the Canadian tax system
Meet the Author
Sean Grant-Young
Information is current to March 4, 2024. The information contained in this release is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.