The Federal and Provincial Government have recently announced changes to personal income tax rates that will take effect mid-year and will decrease the amount of income tax deducted from your pay. You can read the details below or visit the relevant Provincial and Federal websites for more information.

No action is required on your part. These changes be reflected on your July 8, 2025 pay cheque.

We encourage you to consult with a financial advisor or tax professional if you have questions about how these rate changes may impact your personal tax situation. If you need to make any updates to your personal tax credits, you can submit Federal and Provincial TD1/TD1AB changes to biweeklypay@macewan.ca at any time.

Federal Tax Changes

The lowest marginal personal income tax rate will decrease from 15% to 14%, effective July 1, 2025. Because income tax is calculated on an annual basis, this mid-year adjustment results in a blended rate of 14.5% for the 2025 tax year. Beginning in 2026, the full 14% rate will apply year-round.

Alberta Tax Changes

A new tax structure will be implemented for 2025 and beyond:

  • A new rate of 8% will apply to the first $60,000 of taxable income.
  • For the first six months of 2025, a 10% tax rate applied.
  • Starting with the July payroll, a prorated rate of 6% will apply to income earned for the remaining six months of the year by employees projected to earn less than $60,000 over the course of 2025.

Updated Alberta Tax Brackets (as of July 2025):

  • Up to $60,000 – 6% (prorated)
  • $60,000 to $151,234 – 10%
  • $151,234 to $181,481 – 12%
  • $181,481 to $241,974 – 13%
  • $241,974 to $362,961 – 14%
  • $362,961 and over – 15%