Town of Banff

Income Taxes

New to Alberta? You'll find that Alberta has no provincial sales tax, and among the lowest personal income tax, school tax, fuel tax and corporate tax in Canada. However. You still pay taxes.

1. Goods and Services Tax. The GST. The current rate for this federally imposed tax is 5 percent. It is charged on all goods and services, except food purchased as groceries. So you pay it for dining out, for ordering pizza, or for buying a single chocolate bar. You pay it also on your hair cut, your dry cleaning, your car maintenance and other services. You don't pay it on doctor's fees. For more information, visit Revenue Canada.

2. Income Tax. You pay a certain percentage of your income to both the federal and provincial governments. The rate charged depends on your earnings. If your annual income is below the threshold, you will get your taxes back, and can also claim a rebate on your GST. For more information, visit Revenue Canada.


If you are a student, you can ask your employer to withhold the income tax contribution that normally comes off your paycheque automatically. That way you will have more money for school up front and will not have tax deducted that you will most likely get back later anyway.

More Questions?

http://www.ccra-adrc.gc.ca/