Alberta’s new tax cut

By Chantelle de Jonge Chestermere-Strathmore MLA

As of July 1, 2025, hardworking Albertans are keeping more money in their pockets on every paycheque thanks to our new personal income tax cut and the introduction of a new tax bracket.

The new eight per cent tax bracket is now in effect, lowering the rate on the first $60,000 of income from 10 per cent. This means individual Albertans will save up to $750 this year, with two-income families saving as much as $1,500.

At a time when many are feeling stretched by the rising cost of living, this tax cut provides real, meaningful relief.

We promised Albertans we would cut personal income taxes, and we delivered. This is not a rebate or a one-time payment. This is permanent tax relief that puts more money in the hands of the people who earned it. You will now have more freedom to spend, save, or invest however is best for your family.

Whether that extra money helps with groceries, sports, mortgages, rent, or saving for the future, one thing is clear – Albertans are better off when government takes less and trusts you to make the right decisions.

Albertans are proud to have some of the lowest taxes in Canada, with no PST, a low fuel tax, and competitive business taxes. With this new income tax cut, Alberta families and businesses will pay at least $20.1 billion less this year than they would under any other province’s tax system.

Our government is proud to deliver on our commitment to affordability while carefully managing our province’s finances and creating jobs. This tax cut is just another example of how Alberta is leading the way in economic growth and in respecting the workers who make it possible.

Alberta’s government will keep standing up for Alberta families, our energy sector, and the values that define our province.

Lower taxes. More freedom. That’s what we’re delivering.

Thanks to this disciplined approach, Alberta ended the 2024-25 fiscal year with its fourth consecutive surplus, totalling $8.3 billion. The increase is due to higher-than-expected resource revenues, corporate and personal income tax revenue, and impressive investment income. In the face of rapidly changing economic conditions this year due to global trade challenges, the government will use the surplus to fortify Alberta’s economic position, repay debt and save for the future.

As always, please feel free to reach out to my office with your feedback and questions (Chestermere.Strathmore@assembly.ab.ca).

(Chantelle de Jonge is the MLA for Chestermere-Strathmore and the Parliamentary Secretary for Affordability and Utilities)