March 7, 2013
Highlights of the 2013 Alberta Budget
Today Alberta Finance Minister Doug Horner delivered the province’s 2013 budget. The budget does not include any corporate or personal income tax rate changes or any other significant income tax measures.
The only tax rate change in this year’s budget applies to the Education Property Tax.
Corporate income tax rates
The budget did not announce any changes to the corporate tax rate. As a result, the corporate income tax rates effective January 1, 2013 remain as follows:
Personal income tax
Indexation of personal tax credits
The budget notes that the indexation factor for 2013 is 1.8%, meaning that the basic personal and spousal tax credits will increase to $17,593 for 2013 (from $17,282 for 2012).
Education Property Tax
Education property tax rates reduced
Education property tax rates will be reduced by 1.8% in 2013. As such, the residential/farmland property tax rate will be reduced to $2.65 per $1,000 of equalized assessment (from $2.70). The non-residential rate will be reduced to $3.90 per $1,000 of equalized assessment (from $3.97).
We can help
Your KPMG adviser can help you assess the effect of the tax changes in this year’s Alberta budget on your personal finances or business affairs, and point out ways to take advantage of their benefits or ease their impact. We can also keep you abreast of the progress of these proposals as they make their way into law and help you bring any concerns you may have to the attention of the Alberta Ministry of Finance.
Information is current to March 7, 2013. The information contained in this TaxNewsFlash-Canada is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG’s National Tax Centre at 416.777.8500.
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