Tax Insights: 2024 Alberta budget – Tax highlights

Issue 2024-07

In brief

On February 29, 2024, Alberta’s President of Treasury Board and Minister of Finance, Nate Horner, presented the province’s budget. The budget does not change corporate income tax rates, but does:

• propose a new personal income tax bracket for income up to $60,000, to be phased in starting in 2026
• announce a one‑time refundable tax credit for individuals who move to Alberta and work in certain eligible occupations
• increase the land titles registration levy for property transfers and mortgage registrations
• introduce an annual tax on electric vehicles, effective January 1, 2025

This Tax Insights discusses these and other tax initiatives outlined in the budget.

In detail

Personal taxes

Personal income tax rates

The budget announces the planned implementation of a new personal income tax bracket for income up to $60,000, to be phased in over two years, at a tax rate of:

• 9% for 2026
• 8% after 2026

This implementation is contingent upon the province maintaining both sufficient fiscal capacity to introduce the tax cut and a balanced budget.

Top personal tax rates

The top two combined federal/Alberta personal income tax rates for 2023 to 2025 are shown in the table below.

Alberta is Calling Attraction Bonus

The budget introduces the Alberta is Calling Attraction Bonus, a one‑time $5,000 refundable tax credit, which will be available to individuals working in eligible occupations who move to Alberta after the program start date in April 2024. Individuals must meet certain other criteria to qualify for the credit, such as working full time in a specified occupation, filing their 2024 taxes in Alberta and living in the province for at least 12 months. Specifics, including the application process, is forthcoming.

Business taxes

Corporate income tax rates

Alberta’s corporate income tax rates have not changed and will remain as shown in the table below. The table also shows combined federal/Alberta corporate tax rates.

Other taxes

Land titles registration levy

The budget proposes to increase the land titles registration levy, for:

• property transfers, to $50 plus 0.1% of the property transfer value (from $50 plus 0.04% of the property transfer value)
• mortgage registrations, to $50 plus 0.1% of the mortgage value (from $50 plus 0.03% of the mortgage value)

Specifics, including the effective date, will be available when the legislation is introduced in spring 2024.

Electric vehicle tax

The budget introduces a $200 annual tax on electric vehicles, with a targeted effective date of January 1, 2025. The tax will be paid when owners register their vehicles, and is in addition to the existing registration fee. The tax will not apply to hybrid vehicles. Specifics will be available when the legislation is introduced in fall 2024.

Fuel tax relief program

Alberta has resumed charging its fuel tax on gasoline and diesel in 2024 (it had temporarily paused charging the tax in 2023). The rate for gasoline and diesel will remain at 9¢ per litre until March 31, 2024; after that, the rates will be determined quarterly based on the Fuel Tax Relief Program (which uses the average West Texas Intermediate price).

Tourism levy

The budget reminds us that, for bookings made after September 30, 2024, online marketplaces (e.g. Vrbo, Airbnb) will be required to collect and remit the tourism levy on behalf of their Alberta short-term rental hosts. Short‑term rental hosts will continue to collect and remit the tourism levy on stays booked before October 1, 2024.

Education property tax

For the 2024‑25 fiscal year, education property tax rates will be frozen at:

• $2.56/$1,000 for residential/farmland property
• $3.76/$1,000 for non‑residential property

Vaping tax

Alberta will join the federal-provincial coordinated vaping tax framework. Starting as early as January 1, 2025, vaping substances sold in Alberta will be subject to a provincial tax of:

• $1 per 2 millilitre (mL) or gram (g), or fraction thereof, for the first 10 mL/g of vaping substances in the vaping device or container, plus
• $1 per 10 mL/g, or fraction thereof, for amounts over the first 10 mL/g,

which will be administered by the federal government.

Tobacco taxes

Effective March 1, 2024, tobacco taxes will increase, for:

• cigarettes, by 2.5¢ to 30¢ per cigarette
• smokeless tobacco, by 7.5¢ to 35¢ per gram