Alberta -> Alberta 2008 Budget
Alberta 2008 Budget - April 22, 2008
See the Alberta government Provincial
Budget web site for all details.
Personal taxes and premiums
Alberta health care insurance
premiums will be eliminated on January 1, 2009.
Benefits under the Alberta
Family Employment Tax Credit will be increased by 10% effective July 1,
2008, and more families will be eligible for this credit.
The following non-refundable tax credit amounts were
increased by $5,000 each ($500 increase in the actual tax credit) for 2008
as per the Alberta 2008 budget:
Income threshold amounts are also increased, by $5,000 each
for the caregiver credit and the infirm dependent credit.
The
tables of non-refundable tax credits
reflect the increased amounts.
Students
Alberta is reducing the interest rate payable on Alberta
student loans from Prime + 2.5% to Prime.
Tuition fee increases will continue to be limited to the
rate of inflation in Budget 2008.
Businesses
The small business threshold for the 3% small business tax
rate will increase from $460,000 to $500,000 effective April 1, 2009.
A new 10% provincial credit for scientific research and
experimental development will take effect January 1, 2009.
Alberta's small business threshold is higher than that of
the federal government. This means that some dividends are eligible for
the enhanced dividend tax credit when the income to produce them has been
taxed at the small business rate provincially. The result is that the
effective personal tax rate is only 3%. Alberta plans to bring in
changes which would increase the effective rate to 10%. Further details
will be available when legislation is introduced.
Dividend tax credit (DTC) rates
On the Alberta Dividend
Tax Credit page we have added a table showing the revised combined
federal/Alberta marginal tax rates for
eligible dividends after the federal reduction of
the dividend gross-up, and the changes in the federal dividend tax credit
rate.
Federal tax changes
Federal budget 2008 income tax measures affecting taxable
income and certain tax credits that automatically affect provincial
taxes in all provinces and territories
except Québec:
