Alberta residents should brace themselves for increased expenses when renting vehicles or staying overnight, along with higher property taxes. The newly introduced rental car tax and the significant rise in provincial property tax rates are set to impact residents’ wallets. Additionally, various other fees, such as traffic fines and historic site admission fees, may also burden individuals.
The vehicle rental tax in Alberta, effective in January 2027, will be six percent of the rental vehicle’s base price for passenger vehicles with seating capacities of eight or fewer people. Long-term leases and large vans or commercial vehicles are exempt from this tax. The government anticipates generating $36 million in revenue in the tax’s first full year.
Property taxes are also on the rise, with the province’s requisition projected to increase to $3.6 billion in the current budget, a 16 percent increase from the previous year. This increase will impact homeowners differently based on their property values. For instance, a median Calgary homeowner may see an additional $28 per month on their tax bill, while Edmonton residents could face an extra $13 monthly.
Furthermore, the tourism levy in Alberta is set to increase from four percent to six percent for accommodations at hotels, motels, or inns. This tax hike aims to boost revenue, projected to reach $200 million in 2026-27 and $214 million the following year. Despite the increase, Alberta’s tourism levy remains one of the lowest in the country.
Other fee hikes include fines for excessive speeding, racing, and stunting, which will rise by 30 to 50 percent. Additionally, fees for apprenticeship education and various certifications will increase to $150, and admission fees for provincial historical sites will also see a bump.
Seniors will face adjustments in benefits, with changes to the Alberta Seniors Benefit income threshold and reductions in special needs assistance. The provincial government plans to consolidate tax credits for caregivers into a new Alberta Caregiver Credit, aligning it with the Canada Caregiver Credit. These changes are expected to save the government $12 million annually, resulting in a decrease in tax credits disbursed to Albertans.