Alberta tax facts for corporations
Alberta is the outlier in Canadian corporate tax: the lowest general rate, no provincial sales tax, no employer health tax, and a separate provincial return that no other western province requires. Here are the figures, with the source under each table.
Quick answer: Alberta taxes small-business corporate income at 2% and general income at 8%, the lowest general rate in Canada, on a $500,000 threshold. There is no provincial sales tax and no employer payroll health tax, but Alberta corporations file a separate provincial AT1 return.
The lowest general rate in the country
Alberta administers its own corporate income tax through Tax and Revenue Administration rather than through the CRA, which is why Alberta and Quebec are the two provinces missing from the CRA’s provincial rate table. The rates below have been in effect since 1 July 2020.
| Measure | Provincial | Federal | Combined |
|---|---|---|---|
| Small-business rate | 2% | 9% | 11% |
| General rate | 8% | 15% | 23% |
| Small business threshold | $500,000, shared across an associated group | ||
Alberta rates and threshold per Government of Alberta, Tax, levy and prescribed interest rates and Corporate income tax; federal net rates per the Canada Revenue Agency. Retrieved 31 July 2026.
The number to notice is 23%. In most of Canada, income above the small business threshold is taxed in the high twenties; in Alberta it is not. For a company that has outgrown the threshold and intends to retain earnings, that gap is the single largest provincial variable in the calculation.
GST only, and what that does to your bookkeeping
Alberta has no provincial sales tax: an Alberta-only business charges 5% GST, with no second registration or return and no hidden provincial cost. Sell into an HST or PST province and the rate follows the customer. Alberta provincial tax for corporations is the lightest in the country, and the tables below show how the combined rates land.
| Tax | Rate | Administered by |
|---|---|---|
| GST | 5% | Canada Revenue Agency |
| Provincial sales tax | None | — |
| HST | Not applicable | — |
Per the Canada Revenue Agency GST/HST rates by province table, which lists Alberta PST as 0%. Retrieved 31 July 2026. Alberta does levy a separate tourism levy on accommodation, which is outside the scope of this table.
No employer health tax, but workers’ compensation still applies
Alberta has no employer payroll health tax like those in British Columbia, Ontario, Manitoba and Newfoundland and Labrador. Statutory payroll cost is CPP, EI and workers’ compensation premiums only.
| Item | Alberta |
|---|---|
| Employer health / payroll tax | None |
| Workers’ compensation | Workers’ Compensation Board – Alberta (WCB-Alberta) |
| Premium basis | Industry classification applied to assessable earnings |
A BC employer with $2,000,000 of remuneration pays employer health tax at 1.95% on the whole amount; the same payroll in Alberta attracts no provincial charge. If you run payroll in more than one province, the payroll hub sets out how the obligations differ.
The AT1 return and the corporate registry
Because Alberta has no corporate tax collection agreement with the federal government, a corporation with a permanent establishment in the province files an AT1 Alberta corporate income tax return in addition to its federal T2. Prescribed corporations must net file it. This is the obligation most often missed by owners who incorporate in Alberta while living elsewhere.
| Filing | Filed with | Notes |
|---|---|---|
| AT1 corporate income tax return | Alberta Tax and Revenue Administration | Required if the corporation had a permanent establishment in Alberta at any time in the year, unless exempt |
| Annual return | Alberta Corporate Registry, through an authorized registry agent | Keeps the corporation in good standing |
| Corporate Account Number | Alberta Corporate Registry | Same as the Corporate Access Number on the certificate of incorporation |
Per Government of Alberta, Corporate income tax and Incorporate an Alberta corporation. Retrieved 31 July 2026. Alberta also moved to online mail through TRACS as the default for corporate income tax correspondence as of .
Compare with other provinces
Same tables, different province.
Sources
Every rate and threshold on this page comes from the following. Rates change — check the source before relying on a figure.
General information, not advice. Have a CPA confirm it for your situation
Alberta cities we work with
These figures apply in every Alberta city. Each city page covers the businesses that city runs on: Calgary, Edmonton, Airdrie, Red Deer, Lethbridge, Medicine Hat, St. Albert, Sherwood Park, Grande Prairie and Fort McMurray.