Cutting Alberta’s Tax Rate to 8 Percent Would Save Families $1,500: Fraser Institute

Tax forms are shown in Toronto on April 5, 2018. The Canadian Press/Doug Ives

A flat 8 percent income tax rate would make Alberta more competitive and save residents over $1,500 a year, according to a report from the Fraser Institute. Lowering the tax rate is a promise that Premier Danielle Smith made to voters in the 2023 election.

However, residents were told in the 2024 budget that they’ll have to wait until 2026 to see a new income tax bracket for those earning up to $60,000. The new rate will be 9 percent. In 2027, it will be reduced to 8 percent, according to a government webpage.