Businesses in Calgary continue to enjoy the Alberta advantage when it comes to corporate income taxes in comparison to other provinces.
With no provincial sales tax, no payroll tax, no health care premiums, lower personal income tax rates and the lowest fuel tax among provinces. Alberta continues to be a great place to do business thanks to its infrastructure, cities, diverse industries, growing population and investment opportunities.
Effective July 1, 2015 the general Alberta corporate income tax rate is 12 per cent. The Alberta small business income tax rate is 3 per cent for eligible small businesses with income up to $500,000.
The Canadian federal corporate income tax rate has steadily decreased from 22.12 per cent in 2007 to the current rate of 15 per cent effective January 1, 2012, and, as a result, Canada has the lowest corporate income tax rate in the G7.
The combined federal/provincial corporate income tax rate in Calgary is 27 per cent for general businesses and 14 per cent for small businesses and a competitive corporate income tax rate is in place for manufacturers.
Calgary businesses also benefit from the fact that Alberta has no inventory tax, no machinery and equipment tax and no payroll tax, which are common in many other provinces and U.S. states. Since 2001, the provincial government has cut the small business tax rate in half (from 6 per cent to the current 3 per cent) and more than doubled the small business income threshold to $500,000.
Compare provincial corporate tax rates across Canada and its provinces and the United States here.
Business tax is currently levied on any business that occupies space within the city of Calgary during the calendar year. The business tax levy is calculated my multiplying the assessed value of the business space by the tax rate, which is set annually. However, this tax is in the process of being merged with the non-residential property tax rate.
On April 9, 2012, Calgary City Council adopted the recommendation to consolidate business tax revenues with the non-residential property tax starting in 2013.
Business tax consolidation will occur over a seven-year implementation timeframe culminating with the full consolidation of all business tax revenues into the non-residential property tax, and the elimination of Calgary’s business tax in the 2019 tax year. The seven-year implementation time frame will incrementally transfer business tax revenues into the non-residential property tax. Click here for more information.
Calgary -- 0.0427 (2016)
Calgary non-residential property taxes (also known as Calgary commercial property taxes, Calgary industrial property taxes, or Calgary office property taxes) are calculated and billed annually using the property’s assessed value, as found on your property assessment notice, and the City Council-approved property tax rate.
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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 relevant sector specialist from our team of Business Development Managers below.
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