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Alberta 2019 Budget - October 24, 2019

All budget measures are subject to legislative approval.

Alberta's Tax Plan

Pause indexation of the personal income tax system until economic and fiscal conditions improve. See Alberta 2020/2019 tax rate table for marginal tax rates for capital gains, eligible and non-eligible dividends and other income. The tables of non-refundable tax credits for 2020 have also been revised.

Eliminate education and tuition tax credit amounts, starting with the 2020 tax year. Alberta students will still be able to claim credits earned prior to 2020.

Increase tobacco tax by $5 per carton of 200 cigarettes, effective 12:01 am on October 25, 2019.

Put a tax on vaping products - more information will be in 2020 budget.

Replace the Alberta Family Employment Tax Credit (AFETC) and the Alberta Child Benefit (ACB) with a new Alberta Child and Family Benefit (ACFB) beginning in July 2020. This will provide more money to low-income families with children. See page 148 of the 2019-23 Fiscal Plan (see link below) for ACFB amounts for 2020-21.

Bring forward legislation in spring 2020 to facilitate the collection of the 4% tourism levy from short-term rental online marketplaces, such as Airbnb, HomeAway, and Vacation Rental by Owner (VRBO).

Education property tax rates will be frozen in 2019-20.

Eligible dividend tax credit rates will be adjusted on January 1, 2021 and again on January 1, 2022 to correspond with the reduction in the general corporate income tax rate.

Support for the film industry will be provided by issuing payments through the income tax system beginning in spring 2020. Currently the support is provided through a grant program.

Reconfigure the Canada Workers Benefit (CWB) to:

	Align the phase-in income level with the Income Support (IS) earnings exemption threshold ($2,760) to help offset the impact of Alberta IS benefits being clawed back as a recipient's employment income rises.
	Shift slightly more benefits to single individuals without children, since the Alberta Child and Family Benefit (ACFB) will provide generous benefits to lower- and middle-income families with children.

The Tax Plan can be found in the 2019-23 Fiscal Plan on the Alberta 2019 Budget page.

Scientific Research and Experimental Development (SRED) Tax Credits

Bill 20, Fiscal Measures and Taxation Act, 2019, amends section 26.6 of the Alberta Corporate Tax Act to cancel the SRED program as of January 1, 2020. Amendment A2 to Bill 20 was agreed to November 20, 2019.

2019 Legislation Changes Pre-Budget

Bill 1, An Act to Repeal the Carbon Tax was passed in June 2019, repealing the Climate Leadership Act effective May 30, 2019.

Bill 3, Job Creation Tax Cut (Alberta Corporate Tax Amendment) Act passed in June 2019 reduces the general corporate tax rate to 11% effective July 1, 2019, with subsequent reductions to 10% on January 1, 2020, 9% on January 1, 2021, and 8% on January 1, 2022.

Bill 10, Alberta Personal Income Tax Amendment Act, 2019 passed in June 2019 revised the 2019 non-eligible dividend tax credit rate to 149/890 x the gross-up, or 2.18% of the taxable dividend. Tables of marginal tax rates have been revised, as have all affected tax calculators.

Revised: September 20, 2024