Calgary Economic Development
Relocate And Expand : Taxation






Taxation
Relocate And Expand | Taxation 


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.

Calgary, Heart of the New West


Provincial Tax
Rates 2010

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

 

   
   Commercial General        

1.9367482

0.978076

   Commercial Office      

1.311218

   
   Industrial      

1.510839

1.9900160

 
      Industrial (Major/Large)      

1.297423

 

3.064936

      Industrial (Light)          

0.978076

   Farmland

1.27139

0.47308

 

0.113949

0.1473925

0.215381

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

 

 

 

   Commercial General        

3.5983042

1.863635

   Commercial Office      

3.798249

   
   Industrial      

4.267089

3.6940190

 
      Industrial (Major/ Large)      

3.726214

 

4.048062

      Industrial (Light)          

1.898748

   Farmland

1.54493

0.73487

 

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