2025 Alberta Budget Highlights

Alberta Minister of Finance Nate Horner tabled the province’s 2025 budget on Thursday, February 27, 2025. This year’s budget, titled Meeting the Challenge, seeks to meet the challenges facing Alberta with responsible decisions to fund the priorities of today. It also aims to meet the challenges of uncertainty in trade and security and a rapidly growing population.

Tax highlights:

No new corporate tax measures were announced. Personal and other tax measures in the budget include:

• Introduction of the new eight percent personal income tax bracket for income up to $60,000, effective January 1, 2025; two years ahead of the schedule announced in Budget 2024. Source deductions will be updated after July 1, 2025.
• For Albertans that would have more than $60,000 of non-refundable tax credits, there will be a new tax credit introduced to ensure they will also realize the two percent tax reduction on the first $60,000 of income.
• Increase to the education property tax rates in 2025-2026 (after being frozen in 2024-2025), from $2.56 to $2.72 per $1,000 of equalized assessment for residential and farmland properties, and from $3.76 to $4.00 per $1,000 for non-residential properties.
• Increase to the fuel tax rate that applies to locomotive fuel from 5.5 to 6.5 cents per litre effective March 1, 2025.
• Winding down of the entitlements to the previously eliminated Alberta Climate Leadership Adjustment Rebate and the Alberta Family Employment Tax Credit after December 31, 2025. Late-filed returns and reassessment will no longer be accommodated after this date.

More details and highlights of the 2025 Alberta budget can be found here.