If passed, Bill 2 – “An Act to Restore Fairness to Public Revenues”, will increase the corporate income tax rate for profitable corporations by two percentage points and introduce a more progressive personal income tax system. Corporate taxes will increase from 10 per cent to 12 per cent effective July 1, 2015. Small business tax rate will remain the same at three per cent. The new personal income tax rates will be:
- Income up to $125,000: 10 per cent
- $125,000 – $150,000: 12 per cent
- $150,000 – $200,000: 13 per cent
- $200,000 – $300,000: 14 per cent
- $300,000 and higher: 15 per cent
Also, the NDP government pledges to eliminate the health levy and scrap the PC-proposed fee increases on:
- vehicle licenses and registration
- land title searches and mortgages
- marriage licenses, birth certificates and death certificates.
More information on the Alberta’s NDP government tax Bill can be found here.