Calgary benefits from a low tax regime: the province of Alberta has no municipal or provincial sales tax and has one of the lowest provincial corporate tax rates in Canada (11.5 per cent). Furthermore, the Canadian corporate tax rate is declining to 21 per cent (as outlined in the 2004 federal budget), lower than most U.S. jurisdictions, and there is no provincial general capital tax. Calgary businesses also benefit from the fact that Alberta has no inventory tax, no machinery and equipment tax and no payroll tax.
Alberta is the only Canadian province to have a flat personal income tax rate (10 per cent). All other Canadian provinces work on a sliding income scale. In addition, the provincial government is debt-free; Calgary's low tax regime is expected to continue. Alberta's beneficial tax regime creates an environment in which businesses can operate more profitably, and individuals can retain more of their personal incomes.
Effective April 2004, the provincial government dropped the general corporate income tax rate to 11.5 per cent from 12.5 per cent; at the same time, Alberta's small business rate fell to three per cent from four per cent.
Since 2001, the provincial government has cut the small business rate in half and doubled the small business income threshold to $400,000. The general corporate tax rate decreased by 25 per cent. The government has pledged to further reduce the general rate to eight per cent.
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Provincial Tax
Rates 2005
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