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Taxes
Tax reductions in Budget 2006 will continue to strengthen the Alberta Advantage.
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The general corporate income tax rate will be cut to 10 per cent from 11.5 per cent to ensure Alberta's global competitiveness.
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The basic personal, spousal and eligible dependent credit amounts will rise from $14,523 to $14,899 for the 2006 tax year to leave more money in the pockets of taxpayers.
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The school property tax mill rates will be reduced by seven per cent.
In addition, the eligibility for health care insurance premium subsidies will be expanded (more information).
Then and now
Provincial Taxes | |
1993 | |
Budget 2006 |
General corporate income tax | |
15.5 per cent | |
10.0 per cent |
Small business | |
6 per cent applies to maximum of $200,000 in taxable income | |
3 per cent applies to a maximum of $400,000 in taxable income |
Personal Income Tax Basic Credit amount | |
$6,456 (federal and provincial) | |
$9,039 (fed.) and $14,899 (prov.) |
Personal Income Tax Spousal amount | |
$5,380 (federal and provincial) | |
$7,675 (fed.) and $14,899 (prov.) |
Property tax (residential rate) | |
$7.65 per $1,000 | |
$4.80 per $1,000 |
Combined top marginal personal income tax rates (federal and provincial) | |
46.07 per cent | |
39 per cent |
Alberta tax advantage (total additional taxes individuals and businesses would pay if Alberta had the same tax systems as other provinces). | |
1994-95 Budget: reported tax advantage of about $3.5 billion over Ontario, BC, New Brunswick | |
2006-07 Budget: $7.2 billion advantage over B.C., the next closest province |
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More information: Backgrounder - Alberta Then and Now
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| Alberta Tax Advantage — Per Capita |
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