Alberta’s 2024 budget, presented by Finance Minister Nate Horner on February 29, 2024, introduces several important changes that may impact residents and businesses:
- New Personal Tax Bracket: Starting in 2026, there will be a new tax bracket for income up to $60,000. This means that if you earn up to $60,000, you may pay less tax than under the previous system.
- Sales and Excise Taxes: New taxes will be introduced, including a vaping tax, and an increase in cigarette tax. The fuel tax for gasoline and diesel will be frozen until at least the end of the first quarter of 2024. Additionally, the tourism levy will now apply to online brokers like Airbnb, Vrbo, and Expedia.
- Electric Vehicle Tax: A new $200 annual tax on electric vehicles will be implemented. This is approximately the amount a driver of a gasoline vehicle pays in Alberta gasoline tax on an annual basis.
- Surplus and Energy Prices: The surplus for the 2023-24 fiscal year is estimated to be $5.2 billion, mainly due to rising energy prices.
- Skilled Worker Tax Credit: A one-time $5,000 refundable tax credit will be available to skilled workers who move to Alberta after the program starts in April 2024. This credit aims to attract skilled workers to the province.
- Other Measures: The budget includes investing an additional $1.1 billion in health care, increasing contingencies to $2 billion per year, expanding funding for affordable housing supply and supports, investing $2.1 billion in constructing and modernizing schools across the province, and providing $1.5 billion to reduce child care service costs to an average of $15 per day in 2024.
What this means for you:
- If you earn less than $60,000, you may pay less tax in 2026.
- If you own an electric vehicle, you will need to pay a $200 annual tax.
- If you smoke or vape, your taxes on these products will increase.
- If you are a skilled worker moving to Alberta, you could receive a $5,000 tax credit.