The Government of Alberta says its new tax cut will save families money.
Effective July 1, 2025, the first $60,000 of income will be taxed at eight per cent, compared to the previous rate of 10 per cent.
Individual taxpayers will save a maximum of $750 in 2025, while two-income households will save up to $1,500.
Most people will see the tax cut reflected in their paycheques starting in July, when payroll withholdings are adjusted.
Premier Danielle Smith says she knows that times have been tough, but this is just one way the province is working to ease some of the pressures people have been facing.
“We promised to help with a cut to personal income taxes, and we delivered on that promise in Budget 2025 with a new eight per cent personal income tax bracket. Now Albertans will start to see that reflected in their paycheques as more money can go to the things that individuals and families think are important,” says Smith.
The tax cut is being welcomed by the Canadian Taxpayers Federation. Alberta Director Kris Sims says it will amount to more than one month’s worth of groceries for a family of four.
“It’s great to see hardworking Albertans getting a hefty tax cut starting this week,” says Sims. “Many Albertans are fighting to afford the basics right now and keeping more of their own money will help.”
Overall, the change to the personal income tax is expected to save Albertans $1.2 billion in 2025, rising to $1.4 billion in 2028.
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~ by David Opinko | LethbridgeNewsNow
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