CALGARY—Alberta’s top combined personal income tax rate is now one of the highest among 61 Canadian provinces and U.S. states, and it’s particularly uncompetitive with other energy-producing jurisdictions, finds a new study published today by the Fraser Institute, an independent, non-partisan Canadian public policy think tank.
“As recently as 2014, Alberta had the lowest top combined personal and business income tax rates in North America and no provincial sales tax—but that advantage has largely disappeared,” said Tegan Hill, Director of Alberta Policy at the Fraser Institute and co-author of Alberta’s Lost Tax Advantage.
Alberta now has the 10th-highest top combined personal income tax rate in North America at 48 per cent—well above key U.S. energy states like Texas, Alaska, and North Dakota, which maintain significantly lower tax burdens. This marks a stark shift from 2014, when Alberta held the lowest combined personal and business tax rates on the continent.
Once known for its “Alberta Tax Advantage,” the province’s elevated tax rates now risk undermining its ability to attract and retain top talent and investment in energy and other key industries. Alberta maintains the lowest combined corporate income tax rate among Canadian provinces at 23 per cent—but it’s fallen to the seventh lowest among all jurisdictions studied. Alberta continues to benefit from a low combined sales tax rate of five per cent, the third lowest rate in North America.
“Policies matter, and reforming Alberta’s comparatively high personal income tax rates would be a strong step toward restoring the province’s attractiveness for workers, entrepreneurs, and investors,” Hill said.
Comparison of top combined (federal and provincial/state) personal income tax in select North American energy-producing jurisdictions
| Province or State | Top personal income tax rate |
| Newfoundland and Labrador | 54.8 per cent |
| Alberta | 48.0 per cent |
| Saskatchewan | 47.5 per cent |
| New Mexico | 42.9 per cent |
| West Virginia | 42.1 per cent |
| Oklahoma | 41.8 per cent |
| North Dakota | 39.5 per cent |
| Wyoming | 37.0 per cent |
| Texas | 37.0 per cent |
| Alaska | 37.0 per cent |
Media Contact:
Tegan Hill, Director of Alberta Policy, Fraser Institute
To arrange media interviews or for more information, please contact:
Emily Rigden, Fraser Institute
604-688-0221 ext. 620
[email protected]
The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, Montreal and Halifax and ties to a global network of think-tanks in 87 countries. Its mission is to improve the quality of life for Canadians, their families and future generations by studying, measuring and broadly communicating the effects of government policies, entrepreneurship and choice on their well-being. To protect the Institute’s independence, it does not accept grants from governments or contracts for research.
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