Albertans can brace for tax hikes, some cuts in 2025

by Peter Eki

2025 Tax Changes:

What You Need to Know Big shifts are coming to taxes in Canada and Alberta in 2025. Here’s a quick breakdown: Alberta’s Tax Cuts Great news for Albertans—income taxes are dropping! The lowest tax rate will decrease from 10% to 8% for the first $60,000 of income, potentially saving families around $1,500 annually. The official budget announcement is set for February. Federal Tax Hikes While Alberta cuts taxes, Ottawa is adding costs: Payroll Taxes: CPP and EI contributions will increase, costing workers up to $403 more annually.

Employers will pay $5,938 per worker. Carbon Tax: Starting April 1, gasoline, diesel, and natural gas prices will rise, adding $133–$477 yearly to household costs after rebates. Alcohol Tax: Federal alcohol taxes go up 2%, adding $40.9 million in taxpayer costs. Other Increases: Expect higher capital gains taxes, new digital services taxes, and fees on streaming platforms.

A Temporary Break A federal sales tax holiday until February 15, 2025, offers relief on items like pre-made groceries, kids' clothing, and snacks, saving Canadians $2.7 billion. Bottom Line Alberta’s cuts will help families, but federal hikes could hit your wallet hard. Stay informed to make the most of these changes.

Author:

Peter Eki

Calgary Realtor