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2017 Alberta Budget Highlights

2017 Alberta Budget Highlights

March 17, 2017

2017 ALBERTA BUDGET

Working to Make Life Better

“Budget 2017 maintains Alberta’s huge tax advantage over all Canadian provinces.”

—Joe Ceci, Minister of Finance

The 2017 Alberta Budget, Working to Make Life Better, was presented March 16, 2017, by Minister of Finance Joe Ceci. The Minister announced that Alberta’s total revenue for 2017-2018 is estimated at $45 billion with total expenses estimated at $54.9 billion. After accounting for a risk adjustment factor, the 2017-2018 deficit is projected to be $10.3 billion.

There were no significant tax changes in the Budget. Instead, it emphasized that Alberta maintains the lowest overall tax regime in Canada, with no provincial sales tax, health premium or payroll tax. The Budget documents did discuss a few minor tax measures, which are summarized below.

INCOME TAX
Political Contributions Tax Credit

The political contributions tax credit will be extended to include contributions made to party leadership elections and candidate nomination races, effective January 1, 2017.

Dividend Tax Credit

Alberta will amend its dividend tax credit calculation for non-eligible dividends, for 2017 and subsequent years, as a result of changes to the federal dividend gross-up calculation.

Indexation

Alberta’s personal income tax system is indexed annually to inflation. Credit amounts and tax brackets will increase by 1.3% in 2017. As a result, the basic personal amount, amount for a spouse or common- law partner, and eligible dependent amounts will each increase from $18,451 in 2016 to $18,690 in 2017. The Alberta Child Benefit and Alberta Family Employment Tax Credit will also increase by 1.3% for the 2017-2018 benefit year.

PROPERTY TAX

Education property tax rates will be frozen for 2017-2018. The residential/farmland rate will remain at $2.48 per $1,000 of equalized assessment and the non-residential rate will remain at $3.64.

(provided by CCH Wolters Kluwer)