Tax and Protection
2024 Alberta provincial budget: personal tax highlights
By ATB Wealth 1 March 2024 2 min read
The 2024 Alberta provincial budget was tabled on Feb. 29, 2024 by Finance Minister Nate Horner. Highlights from the tax plan include proposed personal income tax rate reductions beginning in 2026, a new tax on electric vehicles starting in 2025 and pending increases to land titles fees.
Proposed personal tax rate changes
As announced by Premier Danielle Smith in her pre-budget speech last week, the budget did not include the announcement of any personal tax rate changes for the current year.
As such, personal tax rates remain as follows for 2024:
| Alberta personal income tax bracket | Alberta personal income tax rate |
|---|---|
| First $148,269 | 10% |
| $148,269 - $177,922 | 12% |
| $177,922 - $237,230 | 13% |
| $237,230 - $355,845 | 14% |
| Over $355,845 | 15% |
The government confirmed its commitment to create a new personal income tax bracket for income below $60,000. Implementation is proposed to take place over a two-year period, with a personal income tax rate of nine per cent in 2026 and eight per cent in 2027 for this new income tax bracket, with the caveat that this implementation schedule is contingent on the province being able to do so while maintaining a balanced budget.
| Year | Lowest income tax bracket | Alberta personal income tax rate |
|---|---|---|
| 2024 | First $148,269 | 10% |
| 2025 | First $148,269 (plus indexation) | 10% |
| 2026 (proposed) | First $60,000 | 9% |
| 2027 (proposed) | First $60,000 (plus indexation) | 8% |
Tax on electric vehicles
Budget 2024 introduces a new $200 annual tax on electric vehicles, with a targeted effective date of Jan. 1, 2025. The tax will not apply to hybrid vehicles. The tax on electric vehicles will be paid along with existing vehicle registration fees. The new electric vehicle tax is intended to provide revenue comparable with the fuel taxes paid by those driving typical internal combustion vehicles.
Increases to land titles fees
Currently, Alberta’s land titles fees include a base fee of $50 plus $2 per $5,000 of property value for property transfers and $1.50 per $5,000 of mortgage value for mortgage registrations. Budget 2024 proposes to increase these fees, with the implementation of a new Land Titles Registration Levy of $5 per $5,000 of value for both property transfers and mortgage registrations. Following the proposed fee increase, Alberta land titles fees will remain well below that of neighbouring provinces.
Alberta is Calling Attraction Bonus
The Alberta is Calling Attraction Bonus has been proposed in the 2024 Alberta budget. 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. Additional eligibility criteria 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. Further information and announcements on this credit will be made available in the coming weeks.
For further information regarding the 2024 Alberta provincial budget, please refer to the Government of Alberta’s budget web page.
ATB Wealth® (a registered trade name) consists of a range of financial services provided by ATB Financial and certain of its subsidiaries. ATB Investment Management Inc., and ATB Securities Inc. are individually licensed users of ATB Wealth. ATB Securities Inc. is a member of the Canadian Investor Protection Fund and the Canadian Investment Regulatory Organization.
The information contained herein has been compiled or arrived at from sources believed to be reliable, but no representation or warranty, expressed or implied, is made as to their accuracy or completeness, and ATB Wealth (this includes all the above legal entities) does not accept any liability or responsibility whatsoever for any loss arising from any use of this document or its contents. This information is subject to change and ATB Wealth does not undertake to provide updated information should a change occur. This document may not be reproduced in whole or in part, or referred to in any manner whatsoever, nor may the information, opinions and conclusions contained in it be referred to without the prior consent of the appropriate legal entity using ATB Wealth. This document is being provided for information purposes only and is not intended to replace or serve as a substitute for professional advice, nor as an offer to sell or a solicitation of an offer to buy any investment. Professional legal and tax advice should always be obtained when dealing with legal and taxation issues as each individual’s situation is different.
ATB Wealth experts are ready to listen.
Whether you're a beginner or an experienced investor, we can help.
Email: atbwealth@atb.com