Alberta Tax Rates for 2026
Alberta added a new 8% bracket in 2025 for the first $61,200 of taxable income. Earlier it charged a flat 10% at the bottom. For someone with $61,200 or more of taxable income the change is worth up to $1,224 a year, less the part of that income already sheltered by the basic personal amount.
| Taxable income | Alberta rate |
|---|---|
| Up to $61,200 | 8% |
| $61,200 to $154,259 | 10% |
| $154,259 to $185,111 | 12% |
| $185,111 to $246,813 | 13% |
| $246,813 to $370,220 | 14% |
| Over $370,220 | 15% |
The thresholds rose by 2% for 2026, the cap Alberta set on indexing from 2025.
The Alberta Basic Personal Amount
The first $22,769 of income is covered by the Alberta basic personal amount, worth $1,821.52 at the 8% credit rate. CPP and EI premiums add a further credit at the same rate.
Alberta also gives a supplemental credit: when provincial credits pass $4,896, a further 25% of the excess comes off. That needs credit claims above $61,200 in total, far beyond the basic amounts, so the calculator's single basic claim never reaches it.
Worked Example: $85,000 in Alberta
A full year at $85,000 puts the worker right at the top of the CPP2 band:
| Item | Per year | Per month |
|---|---|---|
| Gross salary | $85,000 | $7,083.33 |
| Federal income tax | −$10,226.60 | −$852.22 |
| Alberta income tax | −$4,970.38 | −$414.20 |
| CPP | −$4,230.45 | −$352.54 |
| CPP2 | −$416 | −$34.67 |
| EI | −$1,123.07 | −$93.59 |
| Take home pay | $64,033.50 | $5,336.13 |
EI stopped at $1,123.07 once pay passed $68,900, and CPP hit $4,230.45 at $74,600. CPP2 is at its $416 maximum because $85,000 is exactly the upper limit. Alberta taxable income is $83,873, so the first $61,200 sits at 8% and the rest at 10%.
Alberta Net Pay Table
| Gross salary | Alberta tax | All deductions | Net per year | Net per month |
|---|---|---|---|---|
| $30,000 | $413.22 | $3,876.35 | $26,123.66 | $2,176.97 |
| $45,000 | $1,522.26 | $8,063.21 | $36,936.80 | $3,078.07 |
| $60,000 | $2,631.30 | $12,309.35 | $47,690.66 | $3,974.22 |
| $85,000 | $4,970.38 | $20,966.50 | $64,033.50 | $5,336.13 |
| $125,000 | $8,970.38 | $33,542.04 | $91,457.96 | $7,621.50 |
| $200,000 | $17,500.28 | $62,146.34 | $137,853.66 | $11,487.80 |
At $30,000, Alberta tax is only $413.22, because so much of that income sits under the basic personal amount. An Ontario worker on the same pay owes $1,054.74 provincially.
Alberta Compared With Its Neighbours
Net pay on $70,000 for a single employee in 2026:
| Province | Provincial tax | Net per year |
|---|---|---|
| Alberta | $3,534.79 | $54,107.20 |
| British Columbia | $3,293.85 | $54,348.15 |
| Saskatchewan | $4,972.67 | $52,669.32 |
At this income BC's provincial bill is $240.95 smaller than Alberta's, while Saskatchewan's is $1,437.88 larger. Compare in detail on the British Columbia and Saskatchewan pages.
Alberta Paycheque by Schedule
| Pay schedule | Gross per pay | Net per pay |
|---|---|---|
| Weekly (52) | $1,634.62 | $1,231.41 |
| Every two weeks (26) | $3,269.23 | $2,462.83 |
| Twice a month (24) | $3,541.67 | $2,668.06 |
| Monthly (12) | $7,083.33 | $5,336.13 |
Whichever schedule your employer uses, the yearly net stays the same; only the size of each deposit changes.
Alberta Marginal Rates
The marginal rate is the share of your next dollar that goes to tax, CPP and EI combined. In Alberta it moves in jumps as each federal and provincial threshold, and each contribution ceiling, is crossed.
| Gross salary | Rate on the next dollar | Kept from the next $1,000 |
|---|---|---|
| $40,000 | 27.9% | $720.88 |
| $65,000 | 36.3% | $636.73 |
| $80,000 | 33.3% | $667.20 |
| $100,000 | 30.5% | $695 |
| $160,000 | 38.0% | $620 |
Two features stand out. Between $74,600 and $85,000, CPP2 adds 4% to every extra dollar. Above $85,000 contributions stop, so the rate can fall even as tax brackets rise. A worker planning overtime or a bonus can use these figures to see what will actually land in the bank.
What Alberta Taxes
- Wages, overtime, shift premiums, bonuses and commission count as employment income.
- RRSP and pension contributions through payroll reduce Alberta taxable income just as they do federally.
- Alberta has no provincial health premium on income.
Alberta Assumptions and Sources
Single employee, full year, salary only, basic personal amounts only. No spouse or dependant amounts and no RRSP contributions.
Sources: Canada Revenue Agency, T4127 Payroll Deductions Formulas (122nd edition, January 2026, and 123rd edition, July 2026): Alberta brackets, basic personal amount and the supplemental credit formula (factor K5P). Rates for 2026.
Frequently Asked Questions
What is the Alberta tax rate on the first $61,200?
8% in 2026. Income from $61,200 to $154,259 is taxed at 10%.
How much is $85,000 after tax in Alberta?
$64,033.50 a year, or $5,336.13 a month, in 2026.
What is the Alberta basic personal amount for 2026?
$22,769, the highest of any province.
Does Alberta charge a health premium?
No. Alberta collects no health premium from employees; in Canada only Ontario adds one to income tax.
Are Alberta tax brackets indexed?
Yes, by 2% for 2026, the capped rate Alberta has used since 2025.
What is the combined marginal rate on $100,000 in Alberta?
About 30.5% on the next dollar, counting federal and Alberta tax. CPP and EI are already at their maximums at that salary.
How much is $5,000 a month after tax in Alberta?
$3,974.22 a month in 2026.
Do I pay CPP in Alberta?
Yes. CPP is 5.95% on earnings between $3,500 and $74,600, the same as in every province except Quebec.