Bill 2, An Act to Restore Fairness to Public Revenues, was introduced by the Alberta Government.  This bill will effect what they call the “high income earners” in Alberta. For corporations with taxable income above $500,000, their Alberta tax rate will go from 10% to 12% effective July 1, 2015.  Please keep in mind that the Alberta tax rate for corporations that are considered small business corporations (with taxable income below $500,000) will remain unchanged at 3%.

Effective October 1, 2015, there will now be five personal tax brackets for Alberta taxes.  Individuals with taxable income up to $125,000 will still have the same Alberta tax rate at 10%.  The rates increase depending on the individual’s taxable income as follows:

• Income up to $125,000                  10%
• $125,000 to $150,000                    12%
• $150,000 to $200,000                   13%
• $200,000 to $300,000                  14%
• $300,000 and above                       15%