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📅 Last Updated: January 19, 2024
✏️ Written By Lisa Rennie
🕵️ Fact-Checked by Caitlin Wood

The salary your employer pays you versus the amount that gets deposited into your bank account will vary due to the various taxes and deductions that are made to salaries in Alberta. The amounts deducted can significantly reduce your take-home pay.

As such, understanding your net income is important, especially when it comes to balancing your budget. Read on to discover how to calculate your net salary in Alberta so you know precisely how much money you’ll be left with to cover all of your life’s expenses. 

How To Calculate Your Net Salary In Alberta

There are many online calculators out there that can help you calculate your net salary in Alberta. Here’s how you can calculate your net pay in Alberta: 

1. Determine Your Gross Pay

Your gross salary should be detailed on your pay stubs. This is the amount you are paid before any taxes or deductions are subtracted.

2. Add Up All Your Deductions

Your monthly deductions should also be listed on your paycheque and can include things such as income taxes, CPP deductions, union dues, vacation pay contributions, health plan expenses, and so forth. Add up all your deductions to get a sum total for each month.

Keep in mind that the exact amount you must pay in taxes on your salary in Alberta is based on federal and provincial taxes rates and deductions. You’ll need to find out exactly what your applicable tax rates are in order to get an accurate idea of how much to deduct from your pay, which we’ll get into later.

Salary Deductions In Alberta

Net pay is the amount of money that is available to you after your deductions have been subtracted from your gross pay. Also referred to as “take-home pay,” your net pay is the final amount that is deposited into your bank account from your paycheque once all the mandatory and voluntary deductions are made. 

Some common deductions include the following:

  • Income taxes
  • Health plan expenses
  • Union dues
  • Employment insurance
  • Canadian pension plan (CPP)
  • Registered Pension Plan (RPP) contributions from your employer
  • Registered Retirement Saving Plan (RRSP) contributions
  • Childcare expenses
  • Professional expenses

All of these deductions will be subtracted from your gross pay and will determine exactly how much you take home.

3. Calculate Your Net Salary 

To calculate your net salary in Alberta, first divide your gross salary by 12 to find out your gross monthly pay. Then, subtract the sum of your monthly taxes and deductions from your gross monthly salary.

For instance, if your gross salary is $60,000, your monthly gross pay would be $5,000 ($60,000 ÷ 12). Next, subtract your total deductions from your monthly gross pay. For instance, if the sum of your deductions is $1,500, subtract $1,500 from $5,000 (your monthly gross pay). 

In this example, the difference is $3,500, which would be your monthly net salary. Multiply that number by 12 to get your annual net salary, which would be $42,000 in this scenario.  

Tax Rates In Alberta

As mentioned, a big chunk of your deductions will come from your federal and provincial tax obligations. In Alberta, your net pay is calculated by subtracting federal and provincial taxes from your annual gross salary. The calculation is as follows:

GROSS SALARY – FEDERAL TAXES – PROVINCIAL TAXES – CPP – EI = NET SALARY 

Federal Income Tax Rates

Federal income tax paid is based on your specific tax bracket, which is determined by your salary. Different tax brackets come with different tax rates. Generally speaking, the more you earn, the higher your tax rate will be. 

Based on the chart below, you would pay a higher percentage in taxes as your salary increases. 

Federal Tax RateFederal Income Tax Brackets
15%Applicable to taxable income up to $57,375
20.5%Applicable to taxable income over $57,375 up to $114,750
26%Applicable to taxable income over $114,750 up to $177,882
29%Applicable to taxable income over $177,882 up to $253,414
33%Applicable to taxable income over $253,414

Alberta Provincial Income Tax Rates

When calculating your income taxes, keep in mind that the applicable tax rates are calculated based on a progressive tax structure. That means a specific tax rate applies to a set income range. Tax rates typically increase every year due to inflation, so these tax brackets will usually change annually. 

The provincial taxes you pay can be calculated using the following chart outlining the tax brackets in Alberta:

Alberta Tax RateAlberta Income Tax Brackets
10%Applicable to taxable income up to $151,234
12%Applicable to taxable income over $151,234 up to $181,481
13%Applicable to taxable income over $181,481 up to $241,974
14%Applicable to taxable income over $241,974 up to $362,961
15%Applicable to taxable income over $321,961

Calculating Your Net Take-Home Salary In Alberta

To illustrate how a difference in income can influence how much you pay in taxes in Alberta, let’s compare a $30,000 salary versus an $80,000 salary:

Gross SalaryFederal TaxesProvincial TaxesTotal Taxes PaidNet Annual Salary
$30,000$1,618$604$2,222$27,778
$80,000$9,945$5,301$15,246$64,754
Note: This example shows the approximate net salary before EI and CPP deductions

Net Salary By Income In Alberta

While the federal tax brackets apply all across Canada, the provincial tax will vary by province. The following chart illustrates how the total taxes paid and CPP and EI contributions made are affected by different income levels in Alberta:

Gross SalaryFederal Tax DeductionProvincial Tax DeductionCPP/EI DeductionTotal Taxes PaidNet Salary
$30,000$1,618$604$2,075$4,297$25,703
$60,000$5,972$3,376$4,358$13,705$46,295
$100,000$14,045$7,301$5,105$26,451$73,550
$150,000$26,353$12,319$5,105$43,777$106,223

Alberta Tax Credits That Can Affect Income Taxes

By reducing your taxable income, you can ultimately reduce the amount you’ll have to pay in taxes. Alberta offers several non-refundable and refundable tax credits to help reduce the amount of provincial tax you would need to pay. 

Non-Refundable Tax Credits in Alberta Refundable Tax Credits In Alberta 
– Allowable amount of medical expenses for dependants
– Amount for eligible dependants or disabled dependants 18 years or older
– Basic personal amount
– Caregiver amount
– Disability amount
– Employment insurance premiums
– Medical expenses
– Unused tuition and education amounts
– Unused investor tax credit
– Stock savings plan tax credit

Live in Alberta with a disability? Check out the AADL program.

Average Salary In Alberta 

According to Statistics Canada, the average salary in Alberta is as follows:

  • Average Income In Alberta: $61,500
  • Median Income In Alberta $45,200

What Is The Minimum Wage In Alberta? 

As of April 01, 2025, the minimum wage in Alberta is $15.00. That would work out to $600 per week assuming 40 hours worked, and $30,000 per year assuming 50 weeks worked.

Based on a minimum wage pay, the taxes paid and net salary would be as follows:

Gross SalaryFederal Tax DeductionProvincial Tax DeductionCPP/EI DeductionTotal Taxes PaidNet Salary
$30,000$1,618$604$2,075$4,297$25,703

Based on a minimum wage, full-time salary, you can expect to take home $25,703 after taxes and CPP and EI contributions have been made.

Alberta Net Salary FAQs

What’s the difference between gross and net salary? 

Gross salary is what you earn before taxes, payroll deductions, and benefits are deducted from your wages, while net salary is the amount remaining after all deductions have been made. 

How much taxes will I pay if I make $50,000 in Alberta?

Taking your specific tax bracket into account, as well as the basic deductions and contributions, you would earn a take-home pay of $39,562 based on a $50,000 gross income in Alberta.

Why should I calculate my net pay? 

Understanding what your net pay is will give you a better idea of how much you actually make. Taxes and other deductions can take a good percentage of your income, leaving you with a lot less than you might expect. For example, if you have a gross salary of $60k, after taxes and deductions you only get $46,295.

Final Thoughts

Your net salary will likely be significantly different from your gross pay in Alberta once all the necessary deductions are made. Knowing what your take-home pay is will help you budget more effectively so you can get a better handle on your finances. 

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