Southern Alberta Investment & Trade Initiative
04.
Incentives & Competitive Tax Rates
Alberta has some of the lowest taxes in North America, including no provincial sales tax, no payroll tax, no health care premiums, and some of the lowest corporate income taxes in Canada.
BUSINESS-FRIENDLY
LOW TAXES
The province’s low fuel taxes and personal income tax rates make it one of the most cost-competitive jurisdictions in the country.
Alberta’s tax advantage, which estimates the total additional provincial taxes that individuals and businesses would pay if the province had the same tax system as other provinces, is particularly significant compared to Ontario and Saskatchewan, where taxes would be $13.3 billion higher under their respective tax systems.
Alberta’s combined federal-provincial corporate income tax rate is lower than the combined federal-state rate in 44 US jurisdictions. When a broader range of taxes paid by businesses is taken into account to calculate the marginal effective tax rate on new investment, Alberta’s tax system is more competitive for new investment than competing US jurisdictions.
In an effort to be the most competitive jurisdiction for investment and business, Alberta has reduced its corporate tax rate to 8%, which is lower than any other Canadian province and on par with some of the most competitive US states.
ADVANTAGEOUS INCENTIVES
As a leader in energy, clean tech, and agriculture, Alberta is diversifying its economy by focusing on growth in the technology, financial services, aviation, and logistics sectors.
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To create a supportive environment for businesses and investors, the province is streamlining approvals and lowering taxes. Alberta has already cut thousands of regulatory requirements, reducing red tape by 15%. According to the Fraser Institute’s Economic Freedom Index, Alberta has the highest economic freedom in Canada.
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To encourage foreign investment, Alberta offers several incentive programs, including grants, loan programs, and tax credits in a range of sectors. The Alberta Securities Commission (ASC) has also amended the self-certified investor prospectus exemption to provide greater flexibility to businesses and investors. This exemption is currently in place on a three-year pilot basis, set to expire on March 31, 2024.
THE SOUTHERN ALBERTA ADVANTAGE
Capitalize on Southern Alberta's growth trajectory.