Alberta's Positive Business Climate
Includes:
· The lowest overall taxes in Canada.
· No provincial sales tax (the only province in Canada without one).
· No general capital or payroll taxes prevalent in other provinces and U.S. states.
· A highly entrepreneurial and competitive business community.
· A government committed to less regulation to enhance business competitiveness.
· A fiscally responsible government that has eliminated its provincial debt, demonstrating to investors the business-like attitude of the government here.
· A highly skilled, educated, and motivated workforce that is the most productive in Canada.
· A strong science and technology culture.
World-class infrastructure to support business, including transportation, telecommunications and utilities, as well as excellent hospitals, schools and post-secondary institutions.
Low Personal Taxes
· The overall tax burden on individual Albertans is by far the lowest of any province in Canada.
· Alberta is the only province without a provincial sales tax, and has the lowest gasoline taxes in the country.
· A two-income family of four earning $60,000 pays about $1,000 less in total provincial taxes, including health care premiums, sales and other excise taxes, in Alberta than in Ontario and $1,650 less than in Quebec.
· A two-income family of four earning $100,000 pays about $2,300 less in total provincial taxes, including health care premiums, sales and other excise taxes, in Alberta than in Ontario and $6,800 less than in Quebec.
* Federal taxes include GST amounts calculated on the basis of varying levels of provincial disposable income.
As of March 21, 2005
Source: Alberta Finance
Reviewed: September 2005 You have reached the official website of Alberta Economic Development
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Alberta Economic Development
Copyright © 2006 Government of Alberta, Canada
Competitive Corporate Taxes
· Alberta has one of the most competitive tax environments in North America.
· Alberta is the only province that does not have a provincial retail sales tax.
· Alberta has a competitive corporate tax rate for manufacturers.
· The combined federal/provincial corporate income tax rate is 33.62% for general businesses and 16.12% for small businesses.
· Alberta has no provincial capital or payroll taxes, which are common in many other provinces and U.S. states.
* 6.5% represents the average effective state corporate income tax rate.
Rates known as of January 2005
Source: Alberta Economic Development & CCH Handbook
| Provincial Corporate Income Tax Rates [%] | State Corporate Income Tax Rates [%] | ||||||
| Province | General |
Mfg & Processing |
Small Business |
State |
General |
Mfg & Processing |
Small Business |
| Newfoundland | 14.0 |
5.0 |
5.0 |
Washington[a] | n/a |
n/a |
n/a |
| Prince Edward Island | 16.0 |
16.0 |
6.5 |
Oregon | 6.6 |
6.6 |
6.6 |
| Nova Scotia | 16.0 |
16.0 |
5.0 |
California | 8.84 |
8.84 |
8.84 |
| New Brunswick | 13.0 |
13.0 |
2.0 |
North Dakota | 7.0 |
7.0 |
6.83 |
| Quebec | 8.9 |
8.9 |
8.9 |
Montana | 6.75 |
6.75 |
6.75 |
| Ontario | 14.0 |
12.0 |
5.5 |
Idaho | 7.6 |
7.6 |
7.6 |
| Manitoba | 15.0 |
15.0 |
5.0 |
Colorado | 4.63 |
4.63 |
4.63 |
| Saskatchewan | 17.0 |
10.0-17.0 |
5.0 |
Utah | 5.0 |
5.0 |
5.0 |
| Alberta | 11.5 |
11.5 |
3.0 |
New Mexico | 7.6 |
7.6 |
4.8 |
| British Columbia | 12.0 |
12.0 |
4.5 |
Louisiana | 8.0 |
8.0 |
6.85 |
| Federal | 22.12 |
22.12 |
13.12 |
Federal |
35.0 |
33.95 |
32.0 |
· Washington has a business occupation tax in lieu of an income tax, which is based on gross revenue sales [0.471% to 1.5% according to the type of business].
· State small business rate is the effective tax rate for US $325,000 [comparable to Alberta threshold of Cdn $400,000].
U.S. federal small business rate is the effective rate for US $245,000 [comparable to Canadian federal threshold of Cdn $300,000].
| Provincial Capital and Payroll Tax Rates [Maximum %] | ||
| Province | Capital Tax General | Payroll Tax |
| Alberta | - |
- |
| British Columbia | - |
- |
| Saskatchewan | 0.60 |
- |
| Manitoba | 0.50 |
2.15 |
| Ontario | 0.30 |
1.95 |
| Quebec | 0.60 |
4.26 |
| New Brunswick | 0.30 |
- |
| Nova Scotia | 0.275 |
- |
| Newfoundland & Labrador | - |
2.00 |
| Prince Edward Island | - |
- |
Rates known as of April 15, 2005
Source: Alberta Finance
Updated: October 2005
Fastest Growing Economy
· Over the past twenty years, Alberta has had the strongest economy in Canada, with an average real rate of growth of 3.4% per year.
· Alberta has capitalized on its strengths in agriculture, energy, forestry and industrial products to develop a dynamic and diverse economy.
· Over the past decade, the economy has experienced rapid growth in such industries as forest products, food processing, machinery, fabricated metals, as well as tourism and business services.
Structure of the Alberta Economy
Percentage Distribution of GDP
Source: Alberta Finance
Stats Updated: September 2005