Alberta Budget 2026: Focused on What Matters (“Budget 2026”) was tabled February 26, 2026, by Minister of Finance Nate Horner. Tax measures in Budget 2026 include a new Alberta Caregiver Credit and a Vehicle Rental Tax. Details of these and other measures are outlined below.
New Alberta Caregiver Credit
Caregivers in Alberta are currently able to claim one of either the caregiver credit or the infirm dependant credit. Effective for the 2027 and subsequent tax years, these non-refundable tax credits will be replaced with a new nonrefundable Alberta Caregiver Credit
The Alberta Caregiver Credit will be available to Albertans who care for an eligible adult relative who is dependent on the caregiver because of a mental or physical infirmity. Unlike the current credits, the Alberta Caregiver Credit will be available to individuals caring for an infirm spouse. Individuals will not be able to claim the new credit in respect of non-infirm senior parents or grandparents who reside with them.
The Alberta Caregiver Credit will be based on the structure of the current caregiver credit, which has a maximum amount of $13,180 in 2026, representing tax savings of $1,054. A partial credit is available when the dependant’s income is between $20,956 and $34,136. For the new credit, these amounts will be adjusted by the Alberta escalator for the 2027 and subsequent taxation years.
Vehicle Rental Tax
Budget 2026 introduces a tax on vehicle rentals in Alberta. The tax will apply to passenger vehicles — vehicles designed primarily for the transportation of people that seat eight or fewer passengers. Vehicles under long-term leases, as well as non-passenger vehicles such as cargo vans, moving trucks, and similar types of vehicles, will be excluded from the tax. The tax will be set at 6% of the price of the vehicle rental, excluding the federal Goods and Services Tax. Itemized charges for insurance and fuel will also be excluded from the tax. The tax is expected to come into effect on January 1, 2027, with additional details to be provided when legislation is introduced in fall 2026.
Tourism Levy
Budget 2026 increases the tourism levy rate from 4% to 6%, effective April 1, 2026. Data Centre Levy Amendments to the Alberta Corporate Tax Act in fall 2025 implemented the new data centre levy framework. Rates for the levy are as high as 2%, with lower rates available to data centres that provide their own power solutions. The Government intends to introduce amendments in the upcoming legislative session to clarify that a data centre’s levy rate will be calculated based on actual power consumption, and power not drawn from the broader grid will be eligible for a 0% rate.
