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2024 Alberta Budget Highlights

2024 Alberta Budget Highlights

Synopsis
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Alberta Minister of Finance Nate Horner tabled the province’s 2024 budget on Thursday, February 29, 2024.

Alberta Minister of Finance Nate Horner tabled the province’s 2024 budget on Thursday, February 29, 2024. This year’s budget, titled A Responsible Plan for a Growing Province, aims to put Albertans and Alberta families first by prioritizing investments in health, education, safety, and economic growth and success.

Personal income tax measures

New personal income tax bracket

The province announced the planned implementation schedule for a new eight percent personal income tax bracket, which will apply to taxpayers' first $60,000 of income. The government first announced its intention to introduce this new bracket in May 2023.

The tax rate cut will be implemented over two years, starting in 2026, with a rate of nine percent applying to income up to $60,000. The rate will reduce to eight percent in 2027.

Alberta is Calling attraction bonus

The province introduced a new $5,000 refundable tax credit for select individuals working in eligible occupations who move to Alberta after the program start date in April 2024. The eligibility criteria will include working full-time in a specified occupation, filing 2024 taxes in Alberta, and living in the province for at least 12 months.

More information on the one-time credit, including the application process and additional eligibility criteria, will be available in the coming weeks.

Corporate income tax measures

No changes were announced to the province’s corporate income tax rates. Alberta’s current corporate income tax rates are two percent on income eligible for the small business deduction and eight percent on all other income. 

Other tax measures

Education property tax

Education property tax rates will be frozen for 2024-2025. However, the province indicated it expects overall education property tax requisition to grow due to the strong increase in property values and increased development.

Vaping tax

The province announced it intends to join the federal-provincial coordinated vaping tax framework and introduce a provincial vaping tax based on federal rates starting as early as January 1, 2025. The coordinated vaping tax will be administered by the federal government.

Tobacco taxes

Effective March 1, 2024, the tax on cigarettes will increase by 2.5 cents to 30 cents per cigarette, and the tax on smokeless tobacco will increase by 7.5 cents to 35 cents per gram.

Electric vehicle tax

The budget introduces a new $200 annual tax on electric vehicles with a target effective date of January 1, 2025. This tax is in line with the estimated annual fuel tax paid by a driver of a typical internal combustion vehicle in Alberta. The tax will not apply to hybrid vehicles. More details will be available when legislation is introduced in fall 2024.

Land titles registration levy

A new land titles registration levy will replace the variable charges that currently apply to Alberta’s land title fees. The levy will be set at $5.00 per $5,000 of value for property transfers and mortgage registrations. Legislation to implement these changes is expected in spring 2024. 

Fuel tax relief program

Following the pause of the provincial fuel tax on gasoline and diesel in 2023, the province’s oil price-based fuel tax relief program is once again in effect. Fuel tax rates will continue to be determined quarterly based on the average West Texas Intermediate price. The fuel tax rate for gasoline and diesel will remain at nine cents per litre until at least March 31, 2024.

Tourism Levy

As initially announced in the province’s 2022 budget, online brokers such as Airbnb, Vrbo, and Expedia will be required to collect and remit tourism levy on temporary accommodations purchased through their marketplaces effective October 1, 2024.

More details and highlights of the 2024 Alberta Budget can be found here.

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