Last updated: Mar. 6, 2023
Alberta Budget 2023 Highlights
The 2023 Alberta Budget was delivered by the Finance Minister, Travis Toews, on February 28, 2023.
The Budget is anticipated to result in surpluses of $10.4 billion for 2022 – 2023, then $2.4 million in the 2023-2024 fiscal year and $2million in the following year.
No corporate or personal tax rate changes were made, but several credits and spending initiatives were introduced or enhanced.
Here we’ll provide a summary of key highlights for Albertans across the province.
Corporate tax rates for Alberta remain to be (as of January 1, 2023):
|Corporate Income||Alberta Rate||Combined Provincial + Corporate Rate|
*tax rate on the first $500,000 of active business income, shared amongst an associated group.
The Alberta Government introduced a new Agri-Processing Investment Tax Credit that will be launched in spring 2023.
- It provides a 12% non-refundable tax credit on eligible capital investments of at least $10 million made on or after February 7, 2023
- Eligible capital expenditures include building or expanding agri-processing facilities in Alberta
- Unused credits can be carried forward 10 years
- Eligibility criteria is under development
- Applications will be accepted starting early 2023
Personal Tax Measures
There are no changes to personal tax rates, however the brackets and credits have been indexed to inflation (2.3% in 2022 and 6% in 2023).
This may result in a refund for some when filing 2022 personal income tax returns if their employers are not aware of the re-indexed brackets and have been withholding tax at the prior levels.
|Tax Brackets||Marginal Tax Rates|
|$142,292 or less||10%|
|$142,293 – $170,751||12%|
|$170,752 – $227,668||13%|
|$227,669 – $341,502||14%|
|$341,503 and over||15%|
Adoption Expenses Tax Credit
The maximum allowable expenses for the Adoption Expenses Tax Credit have been increased:
- The new non-refundable credit (of 10%) limit is now $18,210, which could provide up to $1,821 in provincial tax relief
- Eligible adoption costs include travel-related costs, legal and administrative costs paid by the parents as part of the adoption process.
Charitable Donation Tax Credit
The provincial Charitable Donation Tax Credit has been increased from 10% to 60% for the first $200 of donations
The federal credit is unchanged at 15% for the first $200 of donations.
Other Tax Measures
Fuel tax relief
The province continues to suspend the collection of the $0.13 per litre in fuel tax on gasoline and $0.04 per litre on diesel until June 30, 2023.
After that time, fuel tax rates for both fuel types will resume, and again be determined on a quarterly basis and based on average oil prices.
Education property tax
The mill rates used to calculate used to calculate education property tax have been reduced:
- Residential / farmland: reduced from $2.65/$1,000 equalized assessment to $2.56/$1,000
- Non-residential: reduced from $3.90/$1,000 equalized assessment to $3.76/$1,000
Alberta Budget 2023 includes an increase to health care operating expenses by $965 million in 2023-2024 ($2.5 billion in the next three years).
This includes funding for additional seats to train physicians in Alberta’s medical schools and to attract internationally trained nurses
Post-secondary education tuition increases are capped to 2% per year (effective 2024 – 2025).
The Government will also provide student loan assistance, through various measures:
- Reducing student loan interest rates from prime + 1% to prime.
- Extending the current six-month loan grace period to one year following graduation
Alberta Budget 2023 provides additional funding for those in need (Alberta Child and Family Benefit, Income Support, Assured Income for the Severely Handicapped (AISH) and Alberta Seniors Benefit.
Funding for these programs will be $904 million to be provided over 4 years and is intended to allow for indexing of the mentioned benefits.
A provision for additional childcare funding has been made with $1.3 billion to be spent in 2023-2024 and $1.6 billion in 2025-2026.
This funding will reduce the per day cost of childcare to $15 in 2023-2024, and further reduce to $10 per day by 2026.
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