Open for Business: A Vast Opportunity

Driven by ambition and entrepreneurship, Alberta stands out as one of Canada’s most conducive environments for business. Inherently ambitious and entrepreneurial, Alberta emerges as one of the most business-friendly regions in Canada. With the lowest corporate income tax rate in the country and among the lowest in North America, coupled with the absence of provincial sales tax, payroll tax, and health-care premiums, Alberta fosters an environment conducive to business growth. Moreover, the province leads in per capita investment compared to others.

Renowned as a global energy production leader, Alberta’s economic capacity extends to diverse sectors, including life sciences, agriculture, financial services, and technology.  Calgary, Alberta’s largest city, hosts the highest concentration of company headquarters in Canada and accommodates seven of the top ten world banks. Meanwhile, Edmonton boasts the fastest-growing tech ecosystem in North America. Supporting these urban hubs, Alberta’s smaller towns and midsize cities contribute to the region’s economic diversification.
  

In Alberta, a range of business-oriented programs are in place to nurture success, alongside a proactive and innovative approach to problem-solving, demonstrating a welcoming stance towards business ventures. In the fiscal year 2023-24, Alberta maintains a tax advantage of $19.7 billion. Residents and businesses in Alberta consistently bear the lowest overall tax burden compared to counterparts in other Canadian provinces.

Alberta’s Tax Advantage

The tax advantage in Alberta represents an approximation of the collective extra provincial taxes individuals and businesses would incur if Alberta adopted the tax systems of other provinces. Ontario and Saskatchewan closely align, projecting an additional $19.7 billion in taxes under their respective tax structures.

The most minimal corporate tax rates within the nation

With the lowest corporate tax rates nationwide, Alberta is committed to fostering the most competitive environment for investment and business operations. This dedication is reflected in our provincial corporate tax rate, which stands at 8%—significantly lower than every other Canadian province and comparable to some of the most competitive US states. The combined federal/provincial corporate income tax rate in Alberta is 23% for general businesses (15% federal and 8% provincial) and 11% for small businesses with revenues below $500,000 (9% federal and 2% provincial).

The least burdensome rates for commercial property taxes

Compared to other prominent Canadian cities, Edmonton and Calgary boast some of the most competitive commercial property tax rates. Municipalities across Alberta also have the authority to provide up to 15 years of property tax incentives.

 

Comparison of marginal effective corporate tax rates

Alberta’s combined federal-provincial corporate income tax rate is lower than the combined federal-state rate in 44 US jurisdictions. When considering a wider range of taxes paid by businesses to calculate the marginal effective tax rate on new investments, Alberta’s tax system emerges as more competitive for new investments compared to competing US jurisdictions.