2022 Alberta provincial budget tax highlights

On February 24, the Alberta government released their 2022 budget. The following are highlights of the key tax measures.

Personal tax measures

No personal income tax rate changes were announced in this year’s budget. The current personal combined income tax rates for 2022 are outlined below:

Corporate tax measures

No corporate income tax rate changes were announced in this year’s budget. The current corporate income tax rates for 2022 are outlined below:

Other tax measures

Tourism levy

Following the example of other provinces, Alberta will introduce new legislative amendments in 2022 to require online marketplaces to collect and remit the tourism levy on behalf of their Alberta short-term rental hosts. Additional details will follow when the legislation is released.

Tobacco tax

Effective March 1, 2022, Alberta will move to introduce a separate category for smokeless products, such as chewing tobacco. The tax rate for the new smokeless tobacco category will be set at 27.5 cents per gram to align with Alberta’s per cigarette tax rate.

Education property tax

The budget increases the mill rates used to calculate the education property tax as follows:

• Residential/farmland – $2.65 (from $2.56) per $1,000 of equalized assessment
• Non-residential – $3.90 (from $3.76) per $1,000 of equalized assessment

Taxation of vaping products

In 2022, Alberta will work with the federal government to explore a coordinated taxation approach to collect a provincial tax on vaping products sold in Alberta, instead of introducing a stand-alone provincial tax.

Next steps

Contact your Baker Tilly advisor to learn more about how we can help you navigate the complexities of the Canadian tax system.