--- title: "Alberta Corporate Tax Rates: 2% Small Business, 8% General" url: https://www.everstonecpa.com/alberta-tax-facts description: "Alberta corporate income tax rates for the general and small business bands, the combined federal-provincial figures. Check the threshold each applies to." type: service-or-info updated: 2026-10-05 summary: "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." faq_count: 7 publisher: EverStone CPA Inc., a Chartered Professional Accountant firm registered with CPA British Columbia and CPA Alberta service_area: British Columbia, Alberta, Ontario and Manitoba language: en-CA contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online --- [Home](https://www.everstonecpa.com/) [Alberta](https://www.everstonecpa.com/accountant-alberta) Tax facts Reference tables · Alberta # 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. [Get My Fixed Quote](https://www.everstonecpa.com/book-online)[Ask a Free Question](https://www.everstonecpa.com/quick-question) **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. **An Alberta company?** We file the T2 and AT1 from one set of books, with bookkeeping from $325 a month and the year-end quoted in writing. [Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=corporate-tax#enquiry-form) The province defined as much by what it does not levy. Corporate income tax ## 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. Alberta corporate income tax rates — 2026 tax year | 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. Sales tax ## 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. Sales tax in Alberta — rates in effect July 2026 | 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. Payroll ## 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. Alberta employer obligations — current July 2026 | 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](https://www.everstonecpa.com/payroll-hub) sets out how the obligations differ. Provincial filings ## 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. Alberta corporate filings — current July 2026 | 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 1 April 2026 . ## Compare with other provinces Same tables, different province. [BC tax facts](https://www.everstonecpa.com/bc-tax-facts)[Ontario tax facts](https://www.everstonecpa.com/ontario-tax-facts)[Calgary accountant](https://www.everstonecpa.com/accountant-calgary)[Corporate tax estimator](https://www.everstonecpa.com/corporate-tax-estimator) ## Accountants in Alberta cities These rates apply to every city page below; each one covers the local side of the work. - **Alberta:** [Calgary](https://www.everstonecpa.com/accountant-calgary), [Edmonton](https://www.everstonecpa.com/accountant-edmonton) ## Sources Every rate and threshold on this page comes from the following. Rates change — check the source before relying on a figure. - [CRA — Corporation tax rates (federal and provincial)](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/corporations/corporation-tax-rates.html) - [CRA — GST/HST rates by province](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/charge-collect-which-rate.html) General information, not advice. [Have a CPA confirm it for your situation](https://www.everstonecpa.com/book-online) ## Alberta cities we work with These figures apply in every Alberta city. Each city page covers the businesses that city runs on: [Calgary](https://www.everstonecpa.com/accountant-calgary), [Edmonton](https://www.everstonecpa.com/accountant-edmonton), [Airdrie](https://www.everstonecpa.com/accountant-airdrie), [Red Deer](https://www.everstonecpa.com/accountant-red-deer), [Lethbridge](https://www.everstonecpa.com/accountant-lethbridge), [Medicine Hat](https://www.everstonecpa.com/accountant-medicine-hat), [St. Albert](https://www.everstonecpa.com/accountant-st-albert), [Sherwood Park](https://www.everstonecpa.com/accountant-sherwood-park), [Grande Prairie](https://www.everstonecpa.com/accountant-grande-prairie) and [Fort McMurray](https://www.everstonecpa.com/accountant-fort-mcmurray). Common questions ## Alberta tax facts FAQ **What is the combined corporate tax rate in Alberta?** 11% on active business income eligible for the small business deduction (9% federal plus 2% Alberta) and 23% on general income (15% federal plus 8% Alberta). The 8% general rate is the lowest provincial general rate in Canada. [Ask about your case →](https://www.everstonecpa.com/quick-question) **Does Alberta have a provincial sales tax?** No. Alberta charges 5% GST and no provincial sales tax, which the CRA rate table records as a PST of 0%. A separate tourism levy applies to accommodation but is not a general sales tax. **Why does an Alberta corporation file two tax returns?** Alberta has no corporate tax collection agreement with the federal government, so it administers its own corporate income tax. A corporation with a permanent establishment in Alberta files the provincial AT1 return with Alberta Tax and Revenue Administration on top of its federal T2. **What is Alberta’s small business threshold?** $500,000 of active business income for a Canadian-controlled private corporation that is not in an associated group. Corporations in an associated group share the one threshold between them. **Does Alberta charge an employer health tax?** No. Alberta has no employer payroll health tax comparable to those in British Columbia, Ontario, Manitoba or Newfoundland and Labrador. Employer statutory costs are CPP, EI and WCB-Alberta premiums. **Who administers workers’ compensation in Alberta?** The Workers’ Compensation Board – Alberta. Premiums are set by industry classification and charged on assessable earnings, and registration is separate from your tax accounts. **How current are these Alberta tax figures?** Every rate and threshold here was confirmed against the Government of Alberta and Canada Revenue Agency sources named beneath each table on 31 July 2026. This is general information, not advice for a particular company. --- Source: https://www.everstonecpa.com/alberta-tax-facts Prices: https://www.everstonecpa.com/pricing · Contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online