Savings from Alberta’s new personal income tax system to start in July, government says

An aerial view of the Alberta legislature in downtown Edmonton June 9, 2025. (Cam Wiebe / CTV News Edmonton)

Some Albertans will start to see the effect of their new provincial personal income tax system next month.

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The treasury board and finance minister expects two million people will see a change on their pay cheque thanks to Alberta creating a new personal income tax bracket of eight per cent on the first $60,000 of income, which also shifts the threshold for higher brackets.

The change could result in as much as an extra $750 per person in 2025, the government estimates, as well as a potentially higher tax return because the change is retroactive to Jan. 1.

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“It’s not just a tax cut. It’s a clear sign that we’re standing with Alberta families, helping them manage rising costs and plan for the future,” Minister Nate Horner said in a statement on Friday.

The government also estimates taxpayers who earn less than $60,000 will pay 20 per cent less personal income tax.

Premier Danielle Smith campaigned on a promise to cut taxes in 2023.

With files from CTV News Edmonton’s Brittany Ekelund and CTV Calgary’s Alesia Fieldberg