If you plan to settle in Alberta Province, I believe this information will be good for you.
The Alberta Government released its 2015 Budget yesterday and you can copy the link http://alberta.ca/release.cfm?xID=379486D767B80-E6B6-D13B-D2D8C1E809442C2F
The major highlights include:
Revenue change details
The following is a detailed listing of all revenue and taxation changes in Budget 2015.
Health Care Contribution Levy
• Albertans with taxable income over $50,000 will begin to pay the new Health Care Contribution Levy (HCCL) on July 1, 2015. Individuals with taxable income below $50,000 a year will not be subject to the HCCL.
• The new levy is capped at $1,000 annually, which is reached at $130,800 in taxable income.
• It is estimated that the HCCL will impact about 1.1 million Albertans.
• The new Health Care Contribution Levy is expected to raise $396 million in 2015-16. This amount will rise to about $530 million in 2016-17, the first full fiscal year for which the change will be effective.
Health Care Contribution Levy chart – Fiscal Plan page 87
Personal Income Tax
• Budget 2015 introduces two new tax brackets starting January 1, 2016.
• Taxable income over $100,000 will be subject to a provincial income tax rate of 11.5 per cent once fully implemented over three years. It is expected that this change will impact about 330,000 Albertans, representing 11 per cent of provincial tax filers.
• Taxable income over $250,000 will be subject to a tax rate of 12 per cent once fully implemented. This rate will be reduced to 11.5 per cent after three years to match that of earners over $100,000.
• The additional 0.5 per cent rate is intended to raise additional revenue until the budget is balanced and is estimated to impact about 44,000 of Alberta’s highest income earners, about 1.5 per cent of tax filers.
• Taxable income below $100,000 will continue to be taxed at 10 per cent, as has been the case since 2001. The last time that personal income taxes increased in Alberta was in 1987.
• These new tax brackets are expected to generate an additional $330 million in 2016-17, rising to about $730 million in 2018-19.
Changes to Alberta’s Personal Income Tax Structure – Fiscal Plan page 88
Alberta Family Employment Tax Credit
• Alberta’s tax system provides direct financial support to about 137,000 lower and middle income families through the Alberta Family Employment Tax Credit (AFETC).
• The program is structured as a refundable tax credit, so families benefit from the program regardless of whether they pay any provincial income tax.
• Starting July 1, 2016, the AFETC will be enhanced further. The rate at which benefits are phased in will be increased from eight per cent to 11 per cent on working incomes over $2,760. The phase-out threshold will be increased from $36,778 to $41,250, allowing families to earn more before these benefits begin to phase out.
• The enhancements take effect on July 1, 2016, and it is estimated they will provide about $25 million in additional support for lower and middle income families.
New Alberta Working Family Supplement
• To further support Alberta’s working families, Budget 2015 introduces a new refundable tax credit – the Alberta Working Family Supplement (AWFS). Starting July 1, 2016, this new program will apply to working families earning between $2,760 and $41,220.
• Like the AFETC, the new AWFS will be indexed to inflation each year (starting in 2017) and administered on Alberta’s behalf by the Canada Revenue Agency. Families currently eligible for the AFETC will automatically be enrolled in the new AWFS.
• In total, it is estimated that the AWFS will provide an additional $85 million of support to approximately 75,000 working families. This program, as well as the enhancement of the AFETC, supports the forthcoming Alberta Poverty Reduction Action Plan.
AFETC and AWFS Program Parameters – Fiscal Plan page 89
Fuel Tax
• The fuel tax applicable to gasoline and diesel will be raised by four cents, to 13 cents per litre.
• The last time tax on gasoline and diesel increased in Alberta was in 1991.
• The Tax Exempt Fuel User and Alberta Farm Fuel Benefit programs provide tax exemptions for fuel used for qualifying purposes. Eligible users will continue to receive the same benefit of nine cents per litre on the purchase of marked fuel, but the government is not increasing the benefits provided under these programs.
• These tax rate changes are expected to raise an additional $530 million in 2015-16 and are effective at 12:01 a.m. on Friday, March 27.
Tobacco Tax
• The tax per carton of 200 cigarettes will increase by $5 to $45 and the tax on loose tobacco will rise by 3.75 cents per gram to 33.75 cents per gram. These changes maintain Alberta’s policy of taxing cigarettes and loose tobacco at parity.
• The last time that tobacco tax in Alberta increased was in 2009.
• The levy on cigars will also be increased. The tax rate applied to a cigar’s taxable price will rise from 103 per cent to 116 per cent. The minimum and maximum tax per cigar will also rise from 20 cents to 22.5 cents, and from $6.27 to $7.05, respectively.
• These increases, which align with Creating Tobacco-free Futures: Alberta’s Strategy to Prevent and Reduce Tobacco Use, are estimated to generate an additional $90 million annually.
Charitable Donations Tax Credit
• The Alberta government supports contributions to registered charities by providing a Charitable Donations Tax Credit (CDTC).
• In 2007, the CDTC was enhanced to 21 per cent from 12.75 per cent on total donations over $200 to encourage higher donation levels. The enhancement was not as effective as anticipated.
• Given the ineffectiveness of the credit enhancements and the current fiscal environment, the CDTC rate applied to total donations over $200 will be returned to 12.75 per cent for 2016 – the rate in effect prior to 2007.
• Returning the charitable credit to 12.75 per cent for the 2016 tax year is estimated to save the government $90 million annually.
Insurance Premiums Tax
• The Insurance Premiums Tax is imposed on premiums receivable by an insurer. This tax has remained unchanged for more than 25 years.
• On April 1, 2016, these tax rates will increase by one percentage point to three per cent on premiums for life, accident and sickness insurance, and four per cent for other insurance.
• This measure will generate an additional $165 million in 2016-17.
Education Property Tax
• Beginning in 2016-17, the Education Property Tax requisition will be determined on an annual basis, as was done prior to 2013-14.
• Since the government assumed responsibility for education property tax in 1994, the province’s share of total property tax revenue collected in Alberta has fallen from 51 per cent to 26 per cent.
• For more information on this change to Education Property Tax, please visitAlberta Municipal Affairs
The Alberta Government released its 2015 Budget yesterday and you can copy the link http://alberta.ca/release.cfm?xID=379486D767B80-E6B6-D13B-D2D8C1E809442C2F
The major highlights include:
Revenue change details
The following is a detailed listing of all revenue and taxation changes in Budget 2015.
Health Care Contribution Levy
• Albertans with taxable income over $50,000 will begin to pay the new Health Care Contribution Levy (HCCL) on July 1, 2015. Individuals with taxable income below $50,000 a year will not be subject to the HCCL.
• The new levy is capped at $1,000 annually, which is reached at $130,800 in taxable income.
• It is estimated that the HCCL will impact about 1.1 million Albertans.
• The new Health Care Contribution Levy is expected to raise $396 million in 2015-16. This amount will rise to about $530 million in 2016-17, the first full fiscal year for which the change will be effective.
Health Care Contribution Levy chart – Fiscal Plan page 87
Personal Income Tax
• Budget 2015 introduces two new tax brackets starting January 1, 2016.
• Taxable income over $100,000 will be subject to a provincial income tax rate of 11.5 per cent once fully implemented over three years. It is expected that this change will impact about 330,000 Albertans, representing 11 per cent of provincial tax filers.
• Taxable income over $250,000 will be subject to a tax rate of 12 per cent once fully implemented. This rate will be reduced to 11.5 per cent after three years to match that of earners over $100,000.
• The additional 0.5 per cent rate is intended to raise additional revenue until the budget is balanced and is estimated to impact about 44,000 of Alberta’s highest income earners, about 1.5 per cent of tax filers.
• Taxable income below $100,000 will continue to be taxed at 10 per cent, as has been the case since 2001. The last time that personal income taxes increased in Alberta was in 1987.
• These new tax brackets are expected to generate an additional $330 million in 2016-17, rising to about $730 million in 2018-19.
Changes to Alberta’s Personal Income Tax Structure – Fiscal Plan page 88
Alberta Family Employment Tax Credit
• Alberta’s tax system provides direct financial support to about 137,000 lower and middle income families through the Alberta Family Employment Tax Credit (AFETC).
• The program is structured as a refundable tax credit, so families benefit from the program regardless of whether they pay any provincial income tax.
• Starting July 1, 2016, the AFETC will be enhanced further. The rate at which benefits are phased in will be increased from eight per cent to 11 per cent on working incomes over $2,760. The phase-out threshold will be increased from $36,778 to $41,250, allowing families to earn more before these benefits begin to phase out.
• The enhancements take effect on July 1, 2016, and it is estimated they will provide about $25 million in additional support for lower and middle income families.
New Alberta Working Family Supplement
• To further support Alberta’s working families, Budget 2015 introduces a new refundable tax credit – the Alberta Working Family Supplement (AWFS). Starting July 1, 2016, this new program will apply to working families earning between $2,760 and $41,220.
• Like the AFETC, the new AWFS will be indexed to inflation each year (starting in 2017) and administered on Alberta’s behalf by the Canada Revenue Agency. Families currently eligible for the AFETC will automatically be enrolled in the new AWFS.
• In total, it is estimated that the AWFS will provide an additional $85 million of support to approximately 75,000 working families. This program, as well as the enhancement of the AFETC, supports the forthcoming Alberta Poverty Reduction Action Plan.
AFETC and AWFS Program Parameters – Fiscal Plan page 89
Fuel Tax
• The fuel tax applicable to gasoline and diesel will be raised by four cents, to 13 cents per litre.
• The last time tax on gasoline and diesel increased in Alberta was in 1991.
• The Tax Exempt Fuel User and Alberta Farm Fuel Benefit programs provide tax exemptions for fuel used for qualifying purposes. Eligible users will continue to receive the same benefit of nine cents per litre on the purchase of marked fuel, but the government is not increasing the benefits provided under these programs.
• These tax rate changes are expected to raise an additional $530 million in 2015-16 and are effective at 12:01 a.m. on Friday, March 27.
Tobacco Tax
• The tax per carton of 200 cigarettes will increase by $5 to $45 and the tax on loose tobacco will rise by 3.75 cents per gram to 33.75 cents per gram. These changes maintain Alberta’s policy of taxing cigarettes and loose tobacco at parity.
• The last time that tobacco tax in Alberta increased was in 2009.
• The levy on cigars will also be increased. The tax rate applied to a cigar’s taxable price will rise from 103 per cent to 116 per cent. The minimum and maximum tax per cigar will also rise from 20 cents to 22.5 cents, and from $6.27 to $7.05, respectively.
• These increases, which align with Creating Tobacco-free Futures: Alberta’s Strategy to Prevent and Reduce Tobacco Use, are estimated to generate an additional $90 million annually.
Charitable Donations Tax Credit
• The Alberta government supports contributions to registered charities by providing a Charitable Donations Tax Credit (CDTC).
• In 2007, the CDTC was enhanced to 21 per cent from 12.75 per cent on total donations over $200 to encourage higher donation levels. The enhancement was not as effective as anticipated.
• Given the ineffectiveness of the credit enhancements and the current fiscal environment, the CDTC rate applied to total donations over $200 will be returned to 12.75 per cent for 2016 – the rate in effect prior to 2007.
• Returning the charitable credit to 12.75 per cent for the 2016 tax year is estimated to save the government $90 million annually.
Insurance Premiums Tax
• The Insurance Premiums Tax is imposed on premiums receivable by an insurer. This tax has remained unchanged for more than 25 years.
• On April 1, 2016, these tax rates will increase by one percentage point to three per cent on premiums for life, accident and sickness insurance, and four per cent for other insurance.
• This measure will generate an additional $165 million in 2016-17.
Education Property Tax
• Beginning in 2016-17, the Education Property Tax requisition will be determined on an annual basis, as was done prior to 2013-14.
• Since the government assumed responsibility for education property tax in 1994, the province’s share of total property tax revenue collected in Alberta has fallen from 51 per cent to 26 per cent.
• For more information on this change to Education Property Tax, please visitAlberta Municipal Affairs
