Information Update

March 15, 1999
Edmonton, Alberta

Calculating personal income tax under Alberta's new system

Alberta's personal income tax system will be simplified when changes announced in Budget '99 are fully implemented.

"Each and every Albertan will have more disposable income under the new plan," said Provincial Treasurer Stockwell Day. "Elements have been introduced to promote equality among Albertans and to allow Albertans to escape the decades old problem of bracket creep."

The 11 per cent single rate, announced with the Budget '99 tax plan, will be calculated on taxable income and current credits will still apply. The new single-rate system, with higher personal and spousal exemptions, is scheduled to take effect on January 1, 2002, but the tax plan could be accelerated if revenues are higher than expected. The income tax process will be simpler, and there will be no additional forms to fill out. Albertans with questions about how they will be affected by the new Alberta Tax Plan can call Alberta Connects at 310-4455.

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Click here for graphic - "Taxes paid in 2002 under New System for families with two children"

For further information, please contact:

Shannon Taylor
Director of Communications
Alberta Treasury
(780) 427-5364

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