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Taxation
Relocate And Expand |
Taxation
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Calgarians enjoy a low tax regime: the province of Alberta has no municipal sales tax, provincial sales tax or provincial general capital tax. The province also boasts the lowest provincial corporate tax rate in Canada. In 2006, the provincial government dropped the general provincial corporate tax rate to 10% from 11.5% to ensure Alberta's global competitiveness.
Moreover, the Canadian corporate income tax rate has steadily decreased from 22.12% in 2007 to the current rate of 18% (effective January 1, 2010). The Government is committed to further lowering the tax to 15% by 2012, and, as a result, Canada will have the lowest corporate income tax rate in the G7.
Calgary businesses also benefit from the fact that Alberta has no inventory tax, no machinery and equipment tax and no payroll tax. Since 2001, the provincial government has cut the small business rate in half (from 6% to the current 3%) and more than doubled the small business income threshhold to $500,000.
Alberta is the only Canadian province to have a flat personal income tax rate (10%). All other Canadian provinces work on a sliding income scale.
Alberta's beneficial tax regime creates an environment in which businesses can operate more profitably, and individuals can retain more of their personal income.
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Provincial Tax
Rates 2010
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| Property Tax Rates for Major Canadian Centres |
| Municipal Tax Rate (%) |
| PROPERTY TYPE |
CALGARY |
EDMONTON |
MONTREAL |
OTTAWA |
TORONTO |
VANCOUVER |
| Residential |
0.31380 |
0.47308 |
1.01260 |
0.569744 |
0.5895702 |
0.214861 |
| Non-Residential |
0.99087 |
1.24654 |
4.02580 |
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| Commercial General |
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1.9367482 |
0.978076 |
| Commercial Office |
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1.311218 |
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| Industrial |
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1.510839 |
1.9900160 |
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| Industrial (Major/Large) |
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1.297423 |
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3.064936 |
| Industrial (Light) |
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0.978076 |
| Farmland |
1.27139 |
0.47308 |
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0.113949 |
0.1473925 |
0.215381 |
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| Total Tax Rate (%) |
| PROPERTY TYPE |
CALGARY |
EDMONTON |
MONTREAL |
OTTAWA |
TORONTO |
VANCOUVER |
| Residential |
0.58734 |
0.73487 |
1.01260 |
1.090539 |
0.8305702 |
0.421377 |
| Non-Residential |
1.37937 |
1.55588 |
4.02580 |
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| Commercial General |
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3.5983042 |
1.863635 |
| Commercial Office |
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3.798249 |
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| Industrial |
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4.267089 |
3.6940190 |
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| Industrial (Major/ Large) |
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3.726214 |
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4.048062 |
| Industrial (Light) |
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1.898748 |
| Farmland |
1.54493 |
0.73487 |
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0.230158 |
0.2076425 |
0.944100 |
The municipal tax rate is established by City Council, while the total tax rate is the sum of the municipal tax rate and all other tax rates imposed at the discretion of its respective city (i.e. education tax rate, urban transit tax). The property types listed here were found to be the most commonly used across Canada's largest centres, however, detailed tables for each city included in the above table can be found at the following links: Calgary, Vancouver, Toronto, Ottawa, Montreal. Though Edmonton's tax rates are not available online, the city's Assessment and Taxation Branch can be contacted by email.
| Business Tax Rates for Major Canadian Centres |
Business tax is levied on any business that occupies space within the city of Calgary during the calendar year.
| Business Tax Rate (%) |
| Calgary |
6.730 |
| Edmonton |
2.125 |
For additional information, see the Calgary's Business Tax webpage or contact Edmonton's Business Assessment Office at (780)496-6388.
Source: Individual municipal websites, June 2010
Calculating a Tax Levy
The tax levy is calculated by multiplying the assessed property value by the tax rate (the tax rate must first be converted into a decimal, by simply moving the decimal point 2 places to the left, which is also known as the 'Mill Rate').
The calculation below is based on a Calgary residential property value of $500,000 with a total tax rate of .58734%:
Assessed value: $500,000
X 2010 tax rate: .0058734
= 2010 tax levy: $2,936.70
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