Alberta
Alberta government should finally undo tax hikes and help restore province’s advantage

From the Fraser Institute
By Tegan Hill
During the election campaign, Danielle Smith promised to create a new 8 per cent tax bracket for personal income below $60,000. While the Smith government’s 2024 budget delayed this tax cut, the premier recently said a “substantial” cut is coming soon. That’s good news, but Smith shouldn’t stop at introducing a new bottom rate. It’s time to finally undo the NDP tax hikes and restore Alberta’s tax advantage.
As recently as 2014, Alberta had the lowest top combined (that is, provincial and federal) personal income tax (PIT) rate in North America. Paired with a low business income tax rate and no sales tax, Alberta had a powerful tax advantage that made the province a very attractive place to work and invest.
Back in 2015, however, the NDP government replaced Alberta’s single personal income tax rate of 10 per cent with a five-bracket system including a top marginal rate of 15 per cent.
Now Alberta has the 10th-highest combined PIT rate in North America. And crucially, we’re less competitive than key U.S. energy jurisdictions such as Texas, Wyoming, Oklahoma, Colorado, Louisiana, North Dakota and Alaska, which compete with Alberta for talent and investment.
Again, Premier Smith plans to create a new 8 per cent tax bracket for personal income below $60,000, which would be lower than the current bottom rate of 10 per cent, and save Albertans earning $60,000 or more an estimated $760 annually. That’s an important first step. However, Alberta still has the higher income tax rates introduced by the NDP—12 per cent, 13 per cent, 14 per cent and the top rate of 15 per cent.
To truly undo the NDP tax hikes, Smith should replace Alberta’s current multi-bracket PIT system with a single rate of 8 per cent, which would be the lowest provincial rate in Canada and one of the lowest top combined PIT rates in North America. The change would help restore Alberta’s tax advantage while saving approximately 2.3 million Albertans $1,573 per year (on average).
The tax change would also help boost the Albertan economy because high tax rates discourage economic growth by reducing after-tax income from work, savings, investment and entrepreneurship while lower tax rates help attract high-skilled workers and investment, which fuels innovation, job creation and strong economic growth, and ultimately higher incomes for Albertans.
Fortunately, this tax change may be more fiscally feasible than one might think. Based on 2023/24 data from the Smith government, replacing Alberta’s multi-bracket PIT system with a single rate of 8 per cent would lead to an estimated revenue loss of $3.8 billion (or approximately 5 per cent of total provincial government revenue that year). But after factoring in the positive effects of increased work, savings and investment, the amount of revenue lost could be significantly lower.
According to Premier Smith, Alberta’s long-awaited income tax cut is on its way—and that’s good news for Albertans. But to undo the NDP tax hikes and reap the benefits of tax reductions, Smith should go further and replace the current system with a single 8 per cent rate.
Author:
Alberta
Red Deer Justice Centre Grand Opening: Building access to justice for Albertans

The new Red Deer Justice Centre will help Albertans resolve their legal matters faster.
Albertans deserve to have access to a fair, accessible and transparent justice system. Modernizing Alberta’s courthouse infrastructure will help make sure Alberta’s justice system runs efficiently and meets the needs of the province’s growing population.
Alberta’s government has invested $191 million to build the new Red Deer Justice Centre, increasing the number of courtrooms from eight to 12, allowing more cases to be heard at one time.
“Modern, accessible courthouses and streamlined services not only strengthen our justice
system – they build safer, stronger communities across the province. Investing in the new Red Deer Justice Centre is vital to helping our justice system operate more efficiently, and will give people in Red Deer and across central Alberta better access to justice.”

Government of Alberta and Judiciary representatives with special guests at the Red Deer Justice Centre plaque unveiling event April 22, 2025.
On March 3, all court services in Red Deer began operating out of the new justice centre. The new justice centre has 12 courtrooms fully built and equipped with video-conference equipment to allow witnesses to attend remotely if they cannot travel, and vulnerable witnesses to testify from outside the courtroom.
The new justice centre also has spaces for people taking alternative approaches to the traditional courtroom trial process, with the three new suites for judicial dispute resolution services, a specific suite for other dispute resolution services, such as family mediation and civil mediation, and a new Indigenous courtroom with dedicated venting for smudging purposes.
“We are very excited about this new courthouse for central Alberta. Investing in the places where people seek justice shows respect for the rights of all Albertans. The Red Deer Justice Centre fills a significant infrastructure need for this rapidly growing part of the province. It is also an important symbol of the rule of law, meaning that none of us are above the law, and there is an independent judiciary to decide disputes. This is essential for a healthy functioning democracy.”
“Public safety and access to justice go hand in hand. With this investment in the new Red Deer Justice Centre, Alberta’s government is ensuring that communities are safer, legal matters are resolved more efficiently and all Albertans get the support they need.”
“This state-of-the-art facility will serve the people of Red Deer and surrounding communities for generations. Our team at Infrastructure is incredibly proud of the work done to plan, design and build this project. I want to thank everyone, at all levels, who helped make this project a reality.”
Budget 2025 is meeting the challenge faced by Alberta with continued investments in education and health, lower taxes for families and a focus on the economy.
Quick facts
- The new Red Deer Justice Centre is 312,000 sq ft (29,000 m2). (The old courthouse is 98,780 sq ft (9,177 m2)).
- The approved project funding for the Red Deer Justice Centre is about $191 million.
Alberta
CPP another example of Albertans’ outsized contribution to Canada

From the Fraser Institute
By Tegan Hill
Amid the economic uncertainty fuelled by Trump’s trade war, its perhaps more important than ever to understand Alberta’s crucial role in the federation and its outsized contribution to programs such as the Canada Pension Plan (CPP).
From 1981 to 2022, Albertan’s net contribution to the CPP—meaning the amount Albertans paid into the program over and above what retirees in Alberta received in CPP payments—was $53.6 billion. In 2022 (the latest year of available data), Albertans’ net contribution to the CPP was $3.0 billion.
During that same period (1981 to 2022), British Columbia was the only other province where residents paid more into the CPP than retirees received in benefits—and Alberta’s contribution was six times greater than B.C.’s contribution. Put differently, residents in seven out of the nine provinces that participate in the CPP (Quebec has its own plan) receive more back in benefits than they contribute to the program.
Albertans pay an outsized contribution to federal and national programs, including the CPP because of the province’s relatively high rates of employment, higher average incomes and younger population (i.e. more workers pay into the CPP and less retirees take from it).
Put simply, Albertan workers have been helping fund the retirement of Canadians from coast to coast for decades, and without Alberta, the CPP would look much different.
How different?
If Alberta withdrew from the CPP and established its own standalone provincial pension plan, Alberta workers would receive the same retirement benefits but at a lower cost (i.e. lower CPP contribution rate deducted from our paycheques) than other Canadians, while the contribution rate—essentially the CPP tax rate—to fund the program would likely need to increase for the rest of the country to maintain the same benefits.
And given current demographic projections, immigration patterns and Alberta’s long history of leading the provinces in economic growth, Albertan workers will likely continue to pay more into the CPP than Albertan retirees get back from it.
Therefore, considering Alberta’s crucial role in national programs, the next federal government—whoever that may be—should undo and prevent policies that negatively impact the province and Albertans ability to contribute to Canada. Think of Bill C-69 (which imposes complex, uncertain and onerous review requirements on major energy projects), Bill C-48 (which bans large oil tankers off B.C.’s northern coast and limits access to Asian markets), an arbitrary cap on oil and gas emissions, numerous other “net-zero” targets, and so on.
Canada faces serious economic challenges, including a trade war with the United States. In times like this, it’s important to remember Alberta’s crucial role in the federation and the outsized contributions of Alberta workers to the wellbeing of Canadians across the country.
-
2025 Federal Election2 days ago
Polls say Canadians will give Trump what he wants, a Carney victory.
-
2025 Federal Election2 days ago
The Anhui Convergence: Chinese United Front Network Surfaces in Australian and Canadian Elections
-
2025 Federal Election1 day ago
Poilievre Campaigning To Build A Canadian Economic Fortress
-
Automotive1 day ago
Canadians’ Interest in Buying an EV Falls for Third Year in a Row
-
2025 Federal Election2 days ago
Trump Has Driven Canadians Crazy. This Is How Crazy.
-
2025 Federal Election2 days ago
Carney Liberals pledge to follow ‘gender-based goals analysis’ in all government policy
-
2025 Federal Election2 days ago
Poilievre’s Conservatives promise to repeal policy allowing male criminals in female jails
-
conflict1 day ago
Trump tells Zelensky: Accept peace or risk ‘losing the whole country’