Your Business News

2023 Alberta Budget commentary

March 1, 2023

Authored by RSM Canada LLP

Gracie Tetzlaff CPA, CA shared this article

TAX ALERT | March 01, 2023

Executive summary: 

On Feb. 28, 2023, Alberta Finance Minister Travis Toews delivered the Alberta 2023 Budget and Fiscal Plan (the 2023 budget). Alberta put forth a fiscal framework to manage Alberta’s unique economic and revenue volatility, with the goal of paying down maturing debt. Consistent with Alberta’s commitment to balance annual budgets, the 2023 budget forecasts a surplus of $2.4 billion for the 2023-24 fiscal period.

Alberta Budget 2023

Income tax measures

The 2023 budget emphasized the value of Alberta’s low tax environment relative to its provincial peers. No changes were proposed to Alberta personal or corporate income taxes.

Resumed indexation of personal income tax system

Due to a budget deficit in 2019, Alberta announced it would freeze indexation of its personal income tax brackets and personal tax amounts (annual non-refundable tax credit received by individuals). Indexation serves as a tool to combat the effects of inflation. As a result of the combined impact of the indexation freeze and increased taxpayers’ income due to inflation, taxpayers moved into higher tax brackets and a smaller percentage of their taxes were reduced by the credit. Now that Alberta’s budget is balanced, it will restart indexation of the personal income tax system effective Jan. 1, 2023. 

Key takeaway

Resuming indexation should result in tax savings for individual Albertans.

Alberta child and family benefit

The Alberta child and family benefit (ACFB) provides financial assistance to middle and lower income families with children under the age of 18. In the 2023 budget, the government confirmed that Alberta will index the ACFB starting Jan. 1, 2023. This will increase the amount of the ACFB families receive and increase the maximum income amount allowing more families to access the benefit. 

Key takeaway

More families will be eligible for the ACFB and all eligible families will receive additional financial assistance.

Adoption expenses tax credit

Alberta offers a tax credit to assist Albertans with growing their families through adoption. In 2023, the maximum allowable expenses under the adoption expenses tax credit will be increased to $18,210 from the current amount of $13,550 and will be indexed for years thereafter.

Key takeaway

Families looking to adopt can utilize this credit and offset a greater portion of qualifying expenses.

Agri-processing investment tax credit

In an effort to capitalize on employment, growth and diversification opportunities in the agri-food industry, Alberta is introducing a new agri-processing investment tax credit (APITC). The APITC is a non-refundable tax credit equal to 1 per cent of certain eligible capital investments of at least $10 million made on or after Feb. 7, 2023. The APITC will be eligible for a 10-year carryforward period. Applications will be accepted starting in spring 2023. More information on types of eligible expenditures and how to apply will be made available once regulations are brought forward.

Key takeaway

Certain businesses in the agri-food industry eligible for this tax credit can benefit from significantly subsidized capital purchases as they work to expand their operations.

Other tax measures

Alberta fuel tax relief

To help with higher costs of living associated with escalating prices of oil, Alberta has paused the collection of fuel taxes from Jan. 1, 2023 until at least June 30, 2023.  Beginning on July 1, 2023, at the earliest, the government will reinstate collection efforts. In July 2023, the fuel tax relief program (first introduced in April 2022) will resume. The fuel tax rate will be based on the quarterly average price of West Texas Intermediate (WTI) from a predetermined pricing scale. Depending on the WTI price, the fuel tax can be anywhere from 13 cents/litre to zero cents/litre.

Key takeaway

In the short term, Albertans will receive a break from fuel taxes. For the remainder of the year and as the price of oil increases, the fuel tax rate will decrease to help offset the rising costs of living in Alberta.

Let's Talk!

Call us at 1 855 363 3526 or fill out the form below and we'll contact you to discuss your specific situation.

  • Topic Name:
  • Should be Empty:

This article was written by Clara Pham, Nakul Kohli, Daniel Mahne, Cassandra Knapman, Sigita Bersenas, Gautam Rishi and originally appeared on Mar 01, 2023 RSM Canada, and is available online at

The information contained herein is general in nature and based on authorities that are subject to change. RSM Canada guarantees neither the accuracy nor completeness of any information and is not responsible for any errors or omissions, or for results obtained by others as a result of reliance upon such information. RSM Canada assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect information contained herein. This publication does not, and is not intended to, provide legal, tax or accounting advice, and readers should consult their tax advisors concerning the application of tax laws to their particular situations. This analysis is not tax advice and is not intended or written to be used, and cannot be used, for purposes of avoiding tax penalties that may be imposed on any taxpayer.

RSM Canada Alliance provides its members with access to resources of RSM Canada Operations ULC, RSM Canada LLP and certain of their affiliates (“RSM Canada”). RSM Canada Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each are separate and independent from RSM Canada. RSM Canada LLP is the Canadian member firm of RSM International, a global network of independent audit, tax and consulting firms. Members of RSM Canada Alliance have access to RSM International resources through RSM Canada but are not member firms of RSM International. Visit for more information regarding RSM Canada and RSM International. The RSM trademark is used under license by RSM Canada. RSM Canada Alliance products and services are proprietary to RSM Canada.

FCR a proud member of RSM Canada Alliance, a premier affiliation of independent accounting and consulting firms across North America. RSM Canada Alliance provides our firm with access to resources of RSM, the leading provider of audit, tax and consulting services focused on the middle market. RSM Canada LLP is a licensed CPA firm and the Canadian member of RSM International, a global network of independent audit, tax and consulting firms with more than 43,000 people in over 120 countries.

Our membership in RSM Canada Alliance has elevated our capabilities in the marketplace, helping to differentiate our firm from the competition while allowing us to maintain our independence and entrepreneurial culture. We have access to a valuable peer network of like-sized firms as well as a broad range of tools, expertise, and technical resources.

For more information on how FCR can assist you, please call us at 1 855 363 3526

Important Notice:

FCR will now redirect you to CCH Portal where your FCR Client Portal login is located.

Share This