Tax Rates – Alberta
Higher federal tax bracket thresholds, as well as increased tax credit and benefit amounts are a few of the key changes for the 2023 tax year.
Tax brackets for 2023: The federal government’s annual indexation adjustment for personal income tax and benefit amounts, which is tied to the rate of inflation, is 6.3% for 2023, compared to 2.4% in 2022. The AB tax brackets increased in 2023 by 6%, which is an indexation factor of 1.06.
Basic personal amount (BPA): The BPA is the amount of income an individual can earn without paying any tax. Federally, this amount increased from $14,398 to $15,000 and from $19,369 to $21,003 provincially.
Age amount: If you are aged 65 or older, you can claim a maximum of $8,396 in 2023, up from $7,898 in 2022.
TFSA limit: In 2023, the annual limit is $6,500, for a total of $88,000 for someone who has never contributed and has been eligible for the TFSA since its introduction in 2009.
View our AB Tax Rates handout for a more comprehensive list of tax information for 2023.