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January 4, 2006
Tax change leaves more money in Albertans' hands
Edmonton... Provincial personal tax credits will rise in 2006, lessening Albertans' tax load by nearly $53 million. The increase stems from a 2001 government decision to index the tax system to inflation.
The province's basic personal exemption, spousal exemption and eligible dependent amounts will rise to $14,799 each. That's an increase of $276 or 1.9 per cent for this year over last and a total increase of 14.7 per cent since indexing began in 2001.
"A typical family of four can earn up to $36,800 with the Alberta Family Employment Tax Credit before paying a dime in provincial income tax," said Finance Minister Shirley McClellan. An estimated 13,400 low-income earners will be added to those shielded from provincial income taxes with this increase. In total since 2001, indexing of exemptions has removed provincial income tax costs from 143,600 Albertans.
Effective July 2006, the Alberta Family Employment Tax Credit will also be added to the inflation-indexing arrangement.
"Alberta continues to offer the highest basic and spousal exemption amounts in Canada," McClellan said. "Inflation indexing helps keep the overall tax burden on Albertans the lowest of all provinces."
Alberta taxpayers would pay nearly $7 billion more in provincial tax under British Columbia's tax system, and over $11 billion more in Newfoundland and Labrador, figures from Budget 2005-06 show.
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Media enquiries may be directed to:
Tracy Balash
A/Director of Communications
Alberta Finance
(780) 427-5364
To call toll free within Alberta dial 310-0000.
This news release is available on the Alberta Finance homepage at:
Copyright(c); 2005 Government of Alberta