Taxes

Fort Saskatchewan has a competitive tax climate for business. The City has one of the lowest property tax rates in the region with a mill rate of just $7.89 for every $1,000 of assessment. The City does not charge a business tax and there are no municipal sales taxes. Alberta has no provincial sales tax or payroll tax. Its corporate income tax rate is just 2% for small businesses.

Federal Taxes

Federal Corporate Income Tax – The Federal corporate rate is 38%. A Federal abatement of 10% and a general tax reduction of 13% could reduce the gross rate to just 15%. With small business deduction (SBD), the net tax rate can be as low as 10%.

Employment Insurance (EI) – The yearly max insurable income per employee is $51,700. The Employee Contribution Rate is 1.66%. The Employer Contribution Rate is 2.324%.

Federal Personal Income Tax – The Federal tax bracket is as follows:

  • 15% on the first $46,605, +
  • 20.5% on the next $46,603 (on the portion over $46,605 up to $93,208), +
  • 26% on the next $51,281 (on the portion over $93,208 up to $144,489), +
  • 29% on the next $61,353 (on the portion over $144,489 up to $205,842), +
  • 33% of taxable income over $205,842.

General Sales Tax (GST) – The General Sales Tax for Canada is 5%.

Provincial Taxes

Alberta Corporate Income Tax – The General Corporate Tax rate in Alberta is 12%. For those claiming the Province's Small Business Deduction (SBD), the corporate tax rate is just 2%.

Alberta Personal Income Tax – the Alberta tax bracket is as follows:

  • 10% up to $128,145
  • 12% from $128,145.01 to $153,773
  • 13% from $153,773.01 to $205,031
  • 14% from $205,031.01 to $307,547
  • 15% from $307,547.01 and above

Provincial Sales Tax (PST) – Alberta has no Provincial Sales Tax. Only the GST of 5% applies.

Municipal Taxes

Property Tax – The total tax rate for property owners is roughly $7.89 for every $1,000 of assessment. This covers municipal, school, and Heartland Housing Foundation taxes.

Note: This is not a complete list – additional taxes or fees may apply to your business at the Federal or Provincial level.