Alberta continues to position itself as one of Canada's most tax-competitive provinces — and the 2026 budget largely holds that line. But with new indirect taxes, revised credits, and rising education property tax rates, there are meaningful changes worth paying attention to, no matter where you sit.
Personal income tax measures
New Alberta Caregiver Credit- Beginning in 2027, Alberta will introduce a new nonrefundable Alberta Caregiver Credit, replacing the existing caregiver and infirm dependent credits. The credit will align with the federal Canada Caregiver Credit and apply to individuals caring for an infirm adult relative, including an infirm spouse; caregivers of non-infirm senior parents or grandparents will not qualify. The maximum amount is $13,180 (2026), providing tax savings of about $1,054, with thresholds indexed starting in 2027.
Budget 2026 does not propose to increase any personal tax rates. Current top personal rates are as follows:
| Personal (combined) federal and Alberta top marginal tax rates | |
| Rate | |
| Interest/regular income | 48.0% |
| Capital gains | 24.0% |
| Eligible dividends | 34.31% |
| Noneligible dividends | 42.31% |
Business tax measures
Budget 2026 does not propose to increase any corporate tax rates. Current rates are as follows:
| 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% |
Indirect tax measures
New vehicle rental tax - Budget 2026 introduces a 6% vehicle rental tax on passenger vehicle rentals in Alberta, effective January 1, 2027. The tax applies to the rental price excluding GST and covers passenger vehicles seating eight or fewer people. Longterm leases, non-passenger vehicles, and itemized insurance and fuel charges are excluded.
Tourism levy rate increase- The Alberta tourism levy on short‑term accommodation will increase from 4% to 6% effective April 1, 2026.
Property tax measures
Education property tax increases - Education property tax rates will increase in 2026–27:
Residential and farmland properties: from $2.72 to $2.84 per $1,000 of assessment
Non‑residential properties: from $4.00 to $4.17 per $1,000 of assessment
What this means for you
Alberta’s Budget 2026 introduces targeted revenue‑raising measures while preserving its broader low‑tax framework. Taxpayers affected by these changes should review their impact ahead of the relevant effective dates. Your Baker Tilly advisor is available to help you navigate these changes.
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