The Alberta government recently updated the budget for 2024-25, making significant alterations.
An update to the promised tax cut.
While promising change to its constituents, the Premier pledged to give out a tax cut.
He announced in February that the 8% income tax rate for incomes below $60,000 will not be implemented as planned. It was initially promised in a throne speech but was only as long as was expected.
Instead, it will come in two stages. There will be a 9% tax on income under $60,000 starting from 2026 and later on reduced to 8% in 2027. The budget also indicates that this change is subject to financial considerations.
The “Alberta is calling” attraction bonus.
Anyone who moves into Alberta specifically for work from April 2024 can now get a $5,000 deduction if they are working certain jobs. This means they keep $5,000 more of their money.
To qualify, you must be employed full-time in an eligible occupation. Calgary should have your taxes filed for the year ending December 31st, 2016. At the same time, you must reside within Calgary for at least twelve months before applying.
It hasn’t given all of them yet regarding vacancies such as skilled labor positions. The first version that came up last July (announced back then) included child-care workers, healthcare professionals, and internship and trades certification holders, among others.
Online vacation rentals now need to collect the tourism levy.
Earlier, they had placed a four percent tourism levy on accommodation purchase prices made within Alberta. However, Airbnb and Vrbo-like companies are making these bookings remit differently than others because they are also online vacation rentals.
This total cost includes cleaning fees, pet fees, booking fees, and service charges, which sum up the “purchase price.” An example of this is shown here:
- Rent: $1,200
- Cleaning: $120
- Service fee: $80
- Pet fee: $400
- Tourism Levy ($): 72
- Total before tax: $1,872
Electric Vehicle Tax
Starting on January 01, 2025, there will be an annual payment of a two-hundred-dollar levy by the owners of electric cars and bikes. The budget notes that electric vehicles are heavier than gasoline-powered ones and, therefore, cause more road damage, but their owners do not pay any fuel taxes for them. They will now have to pay this upon registration.
Fuel tax relief program.
Although the province is reinstating the fuel tax it is reducing how much it will take from you. However, for three months starting from 2024-01-01, this will be only nine cents for every liter as opposed to what others were expecting to pay at the rate of fourteen cents per liter within this period.
Any concerns relating to changes in taxation can be addressed by contacting Faith Accounting & Tax Inc.
