Tax deductions lower your taxable income. Refundable tax credits lower your taxes, and if you don’t owe taxes, you get a refund. Alberta also has the investor tax credit (AITC), and Alberta stock savings plan tax credit. Popular refundable tax credit includes the working income tax credit and Goods and Services Tax credit. Popular non-refundable credits include the basic personal amount for eligible dependents, age amount, charitable donations, medical expenses, caregiver amount, public transit passes, and first-time homebuyer credit.Ī non-refundable tax credit can reduce your taxes to zero however, you won’t get a refund if your credits exceed taxes owed. You can lower your taxes payable using applicable refundable and non-refundable tax credits available federally and provincially. after you make an RRSP contribution.įor example, if your taxable income is $100,000 and your RRSP contribution in 2022 is $10,000, you can expect a tax refund of $3,600 based on a marginal tax rate of 36%. You can use your marginal tax rate to determine how much you save in taxes when you make a tax deduction, e.g. It also includes the federal basic personal amount of up to a maximum of $14,398. The numbers above consider Alberta’s basic personal amount, which is $19,369 for this year. Using the tool here, the combined federal and provincial marginal tax rates for Alberta residents in 2022 are as follows: Marginal tax rates reflect how much you pay in taxes on an additional dollar of income. For 2021, the applicable federal tax brackets and rates are: Taxable IncomeĪlberta Marginal Tax Rates (Federal and Provincial) on the portion of taxable income over $209,952 up to $314,928), plusĪlong with provincial taxes, you must also pay federal taxes on your income. on the portion of taxable income over $157,464 up to $209,952), plus on the portion of taxable income over $131,220 up to $157,464), plus 10% on the first $131,220 of taxable income, plus.To break down the numbers, for 2022, you pay: The income tax brackets and rates that apply to taxable income in Alberta for the 20 tax years are: AB Tax Bracket 2022 How To File Your Tax Return in Alberta Alberta Tax Brackets 2022-2023
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