Calculate the total income taxes of the Alberta residents for 2020
If you live in the province of Alberta and would want to have a fair estimate of what would your Income tax returns would sum up to be this year, then our simple 2020 income tax calculator is just what you need. Our 2020 income tax calculator will help you gauge what you will need to pay and what you’ll get back as your returns. It is an effective tool to estimate your taxes when you switch to a new job or get a raise.
Alberta indexation factor in 2019
The rates, tax brackets and personal amount are increased from last year (2018) based on the indexation factor of 1.024 for Alberta provincial income tax and index of 1.022 for 2019.
Deadline for tax return
The deadline for your income tax return is April 30th of each year. The production date can be postponed to June 15th 2019 if you or your spouse / partner run a business. However, the tax balance must be paid no later than April 30th 2019.
Additional information about income tax in Alberta
The new income tax calculator takes account of CPP, EI, RRSP for both employee and self-employed individual from Alberta, Canada.
Note that gross annual income is taken into account for the calculation of annuities, plans and insurance. You can also make a simple CPP contribution calculation and without all tax numbers.
For other amounts, such as the RRSP contribution, tax credits and other deductions, changes will be made in the coming years.
Calculation of Alberta tax
The following explanation simplifies the calculation of the tax by displaying only the final result of the Net Income.
For an employee
Net Income = Taxable Income – Canadian Tax – Alberta Tax – CPP – EI
For self-employed workers
The same calculation must be made for the self-employed worker. Individuals are resident in the CPP. The self-employed must pay more than an employee.
TAX FIGURES FOR 2020
Each province differs in its tax rates and brackets.
The tax threshold for the basic personal credit or amount is the portion of the wage that is entitled to a tax rate of 0%. This amount comes under non-refundable tax credit.
The federal threshold is the same as the MPB at $ 12,298, however the federal government for 2020 has implemented an additional threshold and subsequent years. This additional threshold is set at $ 13,229 for brackets ranging from 0 to $ 150,473.
Starting from this amount, the additional amount decreases to $ 12,298 at $ 214,368 in salary. This therefore represents an additional declining amount of 1.457078%. The provincial threshold for Alberta is $ 19 369.
For the Provincial, Alberta
| Amount type or threshold | Amount |
|---|---|
| Basic Personal MBP Amount or Credits | $ 19 369 |
| Alberta tax threshold (provincial) | $ 19 369 |
For the federal government, Canada
| Amount type or threshold | Amount |
|---|---|
| Basic Personal MPB Amount in Canada | $ 12 298 |
| Tax threshold in Canada (federal) | $ 12 298 |
| Tax threshold in Canada (federal) increased | $ 13 229 |
Table of provincial tax brackets rates in Alberta for 2020
| Gross taxable income brackets Alberta | Marginal tax rates |
|---|---|
| 19 369$ or less | 0% |
| 19 369$ to 131 220$ | 10% |
| 131 220.01$ to 157 464$ | 12% |
| 157 464.01$ to 209 952$ | 13% |
| 209 952,01$ to 314 928$ | 14% |
| 314 928,01$ or more | 15% |
For more information about Alberta and Canada tax rates brackets, visit the CRA Canada website.
Table of federal tax brackets and rates for 2020
| Taxable Gross Tax Rates | Marginal Tax Rates |
|---|---|
| 12 298$ or less | 0% |
| 12 298$ to 48 535$ | 15% |
| 48 535,01$ to 97 069$ | 20.50% |
| 97 069,01$ to 150 473$ | 26% |
| 150 473,01$ to 214 368$ | 29% |
| 214 368,01$ or more | 33% |