Taxation

Competitive Corporate Taxes

  • Alberta has one of the most competitive business tax environments in North America. The combined federal provincial corporate income tax rate was 28% in 2010, the lowest in the country.
  • By comparison the combined average federal/state corporate income tax rate in the United States is 39.1%.
  • In 2006, the Alberta government reduced its general corporate income tax rate to 10%. The Government of Canada is also reducing the general corporate income tax rate to 15% by 2012.
  • The new income tax rates for Alberta combined with no provincial capital taxes or taxes on financial institutions, no payroll taxes, no sales tax, and a publicly funded health-care system makes Alberta's tax environment very competitive.
  • In 2009, Alberta's health care premiums were eliminated.

Provincial Corporate Income Tax Rates (per cent)1

Province General Manufacturing & Processing Small Business
Alberta 10.0 10.0 3.0
British Columbia 10.5 10.5 2.5
New Brunswick 11.0 11.0 5.0
Québec 11.9 11.9 8.0
Manitoba2 12.0 12.0 1.0
Saskatchewan 12.0 10.0 4.5
Ontario3 12.0 10.0 4.5
Newfoundland & Labrador 14.0 5.0 5.0
Prince Edward Island 16.0 16.0 1.0
Nova Scotia 16.0 16.0 5.0
Federal 18.0 18.0 11.0

1 Rates as of May 31, 2010 unless otherwise noted.
2 Small business rate to be reduced to 0 per cent by December 1, 2010.
3 Effective on July 1, 2010.

Low Personal Taxes

  • Alberta's personal tax advantage results from a low single rate tax system, no general sales tax, and the lowest gasoline tax in the provinces.
  • Albertans pay low personal income taxes, with the lowest top marginal income tax rate and the highest basic and spousal credits in Canada. The overall tax burden on individual Albertans is the lowest of any province in Canada.

Mill Rates - 2011

A mill rate is the amount per $1,000.00 that is used to calculate taxes on property. The mill rate is multiplied by the total taxable value of the property to arrive at the property taxes due.

Residential,
3-acre acreages
Industrial
and Commercial
Farmland
City of Leduc 8.511 13.712 -
Leduc County 5.47 10.82 13.58
Town of Beaumont 7.6299 11.4279 7.6299
Town of Calmar 10.9723
17.5392-vacant
19.3138
13.6577-vacant
same as residential
Town of Devon 7.6724 12.3411 7.6724/ 13.58 for
annexed farmland
Village of Thorsby 11.7457
35.00-vacant
22.9592 11.7457
Village of Warburg 10.2 18.5 10.2

Source: Individual municipalities, as of May 2011