Calgary's cost of business advantage
Calgarians are fortunate as the province of Alberta 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 threshold to $500,000.
Business tax rates for Calgary
Business tax is levied on any business that occupies space within the city of Calgary during the calendar year.
Business tax rate (%)
Calgary - 0.0758 (2013)
For historic business tax rates, visit The City of Calgary.
Wages and salaries
Calgary has consistently had the highest wages and salaries per employee in Canada for the past 12 years; in 2012, the average was $66,844 per employee. Calgary also boasts the second highest average annual growth in wages and salaries per employee over the past ten years (2003-2012) at 4.9 per cent, and the second highest total growth in wages and salaries per employee over the past 10 years (2003-2012) at 57.1 per cent.
Wages and salaries per employee
| Canadian Census Metropolitan Areas | 2012 |
|---|---|
| Calgary | $66,844 |
| Edmonton | $61,020 |
| Toronto | $49,416 |
| Ottawa | $48,860 |
| Vancouver | $45,621 |
| Montreal | $41,283 |
Source: Conference Board of Canada
Additional costs of doing business
Calgary Economic Development's Business Development Managers are equipped to assist you in starting a business in Calgary, providing information on office space costs, leasing and wages. For more information, contact the Sector Specialist.
