The Alberta flag. A new report delves into tax changes that Albertans can expect in 2026. (Photo: Jewhyte | Dreamstime.com)

By David Opinko

Tax changes on the horizon for Albertans in 2026

Dec 30, 2025 | 8:48 AM

Albertans will see some taxes going up in 2026, while others will come down.

The Canadian Taxpayers Federation (CTF) has published its annual New Year’s Tax Changes report, highlighting some of the major changes Canadians can expect over the next 12 months.

“There’s good news and bad news for Alberta taxpayers in 2026,” says Kris Sims, CTF Alberta Director. “The federal government is cutting income taxes, but it’s also hiking payroll taxes.”

Most of the tax-related changes for the upcoming year are initiated by the federal government. They include:

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Government of Canada Tax Changes

Payroll Taxes

Ottawa will raise the maximum mandatory Canada Pension Plan and Employment Insurance contributions in 2026.

Workers who earn $85,000 per year or more will pay an additional $262 in payroll taxes compared to 2025.

Employers can expect to pay $280 more for staff who make the maximum pensionable or insurable earnings.

Income Tax

The federal government will reduce the lowest income tax rate, which is on the first $57,375 of income, from 15 per cent to 14 per cent.

The Parliamentary Budget Office (PBO) estimates that this will save the average taxpayer $190 in 2026.

Carbon Taxes

The Canadian government ended the consumer carbon tax on April 1, 2025. At the time, the levy was $80 per tonne, or 17.6 cents per litre of gasoline.

Since the cancellation, Canadians have been saving $11.30 on every 64-litre tank of gas.

However, Ottawa still has the industrial carbon tax, which is scheduled to increase to $110 per tonne in 2026. Budget 2025 did not contain estimates on how much money this will cost Canadians.

Alcohol Taxes

Since 2017, the alcohol escalator tax automatically increases annually with inflation, impacting beer, wine and spirits.

Federal alcohol taxes are expected to rise by two per cent on April 1, 2026, which is anticipated to cost Canadians $41 million in 2026.

Home Taxes

The Government of Canada eliminated the GST for first-time home buyers on new homes up to $1 million.

This will save first-time homebuyers up to $50,000.

Ottawa also reduced the GST for first-time homebuyers on new homes valued between $1 million and $1.5 million.

Government of Alberta Tax Change

Income Tax

The only provincial tax change mentioned in the CTF report is the reduction of income taxes from 10 per cent to eight per cent on the first $60,000 of earnings.

This will save working families approximately $1,500 per year.

You can see the full report from the CTF at taxpayer.com