Tax Changes for Alberta’s 2024-2025 Budget.

The Alberta government announced the budget for 2024-2025 with some significant changes.

An update to the promised tax cut.

The Premier announced in February that the 8% tax rate for income under $60,000 will be delayed. This was a promise initially made in the throne speech, but it's implementation will take longer than originally expected.

Instead, it'll be delivered in two stages. In 2026, there will be a 9% tax rate for income under $60,000, and in 2027, it'll be reduced to 8%. The budget also says that change is contingent on financial factors.

The “Alberta is calling” attraction bonus.

Starting in April 2024, people in certain jobs who move to Alberta for work can get a $5,000 tax credit. This means they'll get $5,000 back in their pockets.

To qualify, you need to work full time in an eligible occupation. You also need to file your 2024 taxes in Alberta and must live in the province for at least 12 months.

They haven’t announced all the details of which skilled labour jobs they’re hiring for yet. The first iteration of their plan (announced in July 2023) included jobs like child-care workers, healthcare professionals, apprentices, and people employed in certified trades.

Online vacation rentals now need to collect the tourism levy.

Alberta previously issued a 4% tourism levy on the purchase price of accommodations. Now, they'll also make online vacation rental platforms like Airbnb and Vrbo collect this levy on bookings.

The "purchase price" is the total cost for renting, which includes cleaning, pet fees, booking fees, and service charges. So, a 4-day weekend rental could look like this:

· Rental cost: $1,200

· Cleaning fee: $120

· Service fee: $80

· Pet fee: $400

· Tourism Levy: $72

· Total before tax: $1,872

Electric vehicle tax.

Starting on January 1, 2025, owners of electric vehicles will have to pay a $200 annual tax. The budget says electric vehicles are heavier than gas cars and damage roads more, but their owners don't pay fuel tax. They’ll now have to pay this tax when they register their vehicle.

Fuel tax relief program.

The province reinstated the fuel tax but is giving a slight break on the amount. Though it’s usually 13 cents per litre, the first 3 months of 2024 will be 9 cents per litre.

If you have questions about how these changes might affect your taxes, book an appointment with an H&R Block Tax Expert today.