2026 Income Tax Rates – Alberta
Key updates on Alberta tax brackets, CPP, RRSP and TFSA limits, and more.
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The new year brings new and changing Alberta taxes.
The table below shows the 2026 combined federal and provincial marginal tax rates for various types of income.
Here are some of the key changes for 2026:
Alberta tax brackets: The federal government’s annual indexation adjustment for personal income tax and benefit amounts, which is tied to the rate of inflation, is 2.3% for 2026, compared to 2.7% in 2025. The Alberta tax brackets and personal tax credit amounts are increased for 2026 by an indexation factor of 2.0%.
Basic personal amount (BPA): The BPA is the amount of income an individual can earn without paying any tax. Federally, this amount increased from $16,129 to $16,452 and from $22,323 to $22,769 provincially.
CPP contributions: The year’s maximum pensionable earnings (YMPE) for 2026 under the Canada Pension Plan (CPP) will be $74,600, up from $71,300 in 2025. The second earnings ceiling, known as the year’s additional maximum pensionable (YAMPE) earnings, will be $85,000 in 2026, up from $81,200 in 2025. Earnings between the first and second earnings ceilings are subject to a second tranche of CPP contributions, also known as CPP2 contributions, as part of the plan’s expansion that began in 2019.
RRSP dollar limit: The registered retirement savings plan dollar limit for 2026 is $33,810 up from $32,490 in 2025. Note that the amount you can contribute to your RRSP is limited to 18% of your 2025 earned income (plus unused amounts from prior years).
TFSA limit: In 2026, the annual limit is $7,000, for a total of $109,000 for someone who has never contributed and has been eligible for the TFSA since its introduction in 2009.
View our Alberta Tax Rates handout for a more comprehensive list of tax information for 2026.
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Disclaimers and Disclosures
Alitis Investment Counsel Inc. and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before finalizing your tax returns.
