Province’s new eight per cent tax bracket began July 1

Posted on July 10, 2025 by Ryan Dahlman

By Anna Smith
Southern Alberta Newspapers
Local Journalism Initiative Reporter

Starting July 1, the province promises that a new tax cut for Albertans will help keep more money in the hands of residents.

The new eight per cent tax bracket was announced as part of Budget 2025, which applies to income up to $60,000, down from the previous rate of 10 per cent, and will affect a majority of Albertans, the province said in a press release.

“Most taxpayers will start to see the benefit of the tax cut with more money on their paycheques starting this month, when payroll withholdings are adjusted,” said the province. “Now Albertans will have more to spend on what matters most.”

Individual taxpayers will save up to $750 in 2025, while two-income families will see savings of up to $1,500, and as a whole, save Albertans $1.2 billion in 2025.

“We know times have been tight, and we’ve been working on ways to ease some of the pressure people are feeling right now,” said Premier Danielle Smith. “We promised to help with a cut to personal income taxes, and we delivered on that promise in Budget 2025 with a new eight per cent personal income tax bracket.

“Now Albertans will start to see that reflected in their paycheques as more money can go to the things that individuals and families think are important.”

Albertans continue to pay considerably less in overall taxes than those in other provinces.

In 2025-26, Albertans and Alberta businesses would pay at least $20.1 billion less in taxes than they would if Alberta had the same tax system as any other province, says Alberta’s Government.

“Albertans work hard and they deserve to keep more of what they earn. This tax cut delivers real relief now, right when families need it most,” said Nate Horner, president of the Treasury Board and Minister of Finance. “This tax cut reinforces Alberta’s position as the best place in Canada to live, work and raise a family.”