Description

Alberta is implementing major tax reform for 2025, introducing a new 8% tax bracket on the first $60,000 of income (down from 10%). This represents significant tax savings for lower and middle-income earners.

Required Updates

New Tax Structure (2025)

• $0 to $60,000: 8% (NEW - was 10% on entire first bracket)
• $60,000 to $151,234: 10%
• $151,234 to $181,481: 12%
• $181,481 to $241,974: 13%
• $241,974 to $362,961: 14%
• Above $362,961: 15%

Other Updates

• Basic Personal Amount: $22,323 (provincial)
• All brackets indexed by 2% for 2025
• Taxpayers earning less than $60,000 will see taxes fall by 20%
• Maximum savings: up to $750 in 2025

Files to Update

• /policyengine_canada/parameters/gov/provinces/ab/tax/income/rate.yaml (if exists) or create new tax schedule
• /policyengine_canada/parameters/gov/provinces/ab/tax/income/credits/basic_personal_amount/amount.yaml
• Related Alberta tax variables

Implementation Notes

• This is a significant structural change to Alberta's tax system
• The new 8% bracket applies only to the first $60,000
• Income above $60,000 continues to be taxed at existing marginal rates

References

• Alberta Tax Overview
• Alberta Tax Brackets 2025