The 2026 Alberta provincial budget tabled on Feb. 26 maintained current personal and corporate income tax rates. The budget announced changes to tax credits for caregivers, as well as a new vehicle rental tax and an increase to the tourism levy, along with a reduction in income thresholds for financial assistance for seniors. We encourage you to explore those topics most relevant to your unique circumstances. 

Changes to tax credits for caregivers

Budget 2026 announced the consolidation of the existing caregiver and infirm dependent credits into a new Alberta Caregiver Credit effective for the 2027 tax year.

The credits currently available to Albertans are as follows:

The caregiver amount: This credit is generally available to individuals who had a parent or grandparent (aged 65+) living with them, even if they are healthy, as well as other adult relatives living with them and who are dependent on them due to a physical or mental impairment. The dependent’s net income needs to be less than $34,136 to qualify for 2026. 

The amount for adult infirm dependents: This credit is generally available to individuals supporting adult relatives who are dependent on them due to a physical or mental impairment. The dependent's net income needs to be less than $21,887 to qualify for 2026.

Individuals qualifying for both credits must choose which to claim. Both credits result in provincial tax savings of up to $1,054 in 2026.

Starting in the 2027 tax year, the existing caregiver and infirm dependent credits will be replaced by the new Alberta Caregiver Credit. The change is designed to align Alberta’s rules with the federal Canada Caregiver Credit. 

It expands eligibility to include infirm spouses but restricts claims for housing healthy senior parents or grandparents. The Alberta Caregiver Credit will be available to Albertans who care for an eligible adult relative who is dependent on the caregiver because of a mental or physical infirmity.

The Alberta Caregiver Credit will continue to provide up to $1,054 of provincial tax savings, depending on the dependent's income up to $34,136. 

New vehicle rental tax 

Budget 2026 announced a new tax of 6% on passenger vehicle rentals which is expected to come into effect on Jan. 1, 2027. The tax will apply to the rental price for vehicles that seat eight or fewer passengers and will exclude non-passenger vehicles (i.e. cargo vans and moving trucks) and long-term leases.

Increased tourism levy 

Budget 2026 increases the tourism levy from 4% to 6% effective April 1, 2026. The tourism levy applies to short-term accommodation, including both hotels and residential unit accommodation hosts. 

Reduction in income thresholds for financial assistance for seniors

The Alberta Seniors Benefit provides a monthly cash supplement to low-income seniors to help cover basic living expenses. Income thresholds for the Alberta Seniors Benefit will be reduced by 9% effective July 1, 2026, the start of the 2026-27 benefit year.

For the 2025-26 benefit year, if you are receiving Old Age Security and are a single senior with annual income of $34,770 or less, or your combined income as a senior couple is $56,820 or less, you may be eligible for a benefit through the Alberta Seniors Benefit. As noted, these thresholds will be reduced by 9% going forward.

Corresponding reductions to the thresholds for the Special Needs Assistance for Seniors, and the grant component of the Seniors Home Adaptation and Repair Program, will also apply.

Please refer to the Government of Alberta’s budget web page for detailed budget documents.