ALBERTA

Alberta has the simplest provincial layer of any province for a sole proprietor: there is no provincial sales tax, no health premium and no provincial payroll tax. The main provincial obligations are registering a trade name, the owner's Alberta income tax, and the employment standards, workers' compensation and safety rules that apply once the business hires employees. This page sets out what is specific to a sole proprietorship in Alberta. Alberta's income tax brackets are on the Provincial and Territorial Tax page in the Individual section. Figures are for 2026.

REGISTERING THE BUSINESS

• Trade name registration: a sole proprietor operating under any name other than their own legal name must register it as a trade name with Alberta Corporate Registry.

• Through a registry agent: registration is done through a private registry agent, either in person or through an agent's online service, for a fee set by the agent plus the government fee.

• Business number: the CRA business number is obtained separately from the CRA and is not created by the Alberta registration.

• Municipal licences: cities such as Calgary and Edmonton require business licences for many activities, including home-based businesses, and apply their own zoning rules.

SALES TAX IN ALBERTA

• GST only: Alberta has no provincial sales tax. Sales in Alberta are subject only to the 5% GST, registered for and filed with the CRA.

• Selling to other provinces: a business selling to customers in HST provinces generally charges HST at the rate of the customer's province, and may need to register for PST in BC, Saskatchewan, Manitoba or Quebec if it sells into those provinces above their thresholds.

• Tourism levy: businesses providing temporary accommodation, including short-term rentals, must collect Alberta's 4% tourism levy.

• Quick Method: the GST-only Quick Method rates of 3.6% for services and 1.8% for goods for resale apply, as set out on the GST/HST page.

THE OWNER'S PERSONAL TAX RETURN

• Alberta tax: business income is taxed at Alberta's graduated rates on Form AB428, together with the owner's other income.

• No health premium: Alberta has no provincial health care premium.

• Instalments: because no provincial surtax or premium applies, instalments are based on combined federal and Alberta tax and CPP only.

HIRING EMPLOYEES IN ALBERTA

• Minimum wage: $15.00 an hour for most employees, unchanged since 2018. A lower student rate applies to students under 18 for their first 28 hours a week during the school year.

• No payroll tax: Alberta has no employer health tax or other provincial payroll tax.

• Workers' compensation: employers in industries covered by WCB-Alberta must register within 15 days of hiring their first worker. Sole proprietors without workers can usually buy optional personal coverage for themselves.

• Overtime: under the Employment Standards Code, overtime is due after 8 hours in a day or 44 hours in a week, whichever gives more, at 1.5 times pay, unless a written overtime agreement allows time off instead.

• Vacation and holidays: two weeks of vacation and 4% vacation pay after one year, rising to three weeks and 6% after five years, and nine general holidays.

• Termination notice: one week after 90 days of employment, rising in steps to eight weeks after ten years, or pay in lieu.

WORKPLACE HEALTH AND SAFETY

• General duties: every employer must ensure, as far as reasonably practicable, the health and safety of workers, and report serious incidents.

• Health and safety program: employers with 20 or more workers must have a written health and safety program and a joint health and safety committee.

• Smaller employers: employers with 5 to 19 workers need a health and safety representative.

KEY POINTS

• Trade name through a registry agent: for any name other than the owner's own.

• GST only: no provincial sales tax, except the tourism levy on accommodation.

• No premiums or payroll tax: fewer provincial costs and filings than in most other provinces.

• First employee: WCB-Alberta registration within 15 days, $15 minimum wage, and Employment Standards Code minimums.

SOURCES

• Alberta: Register a trade name or partnership; Alberta Corporate Registry.

• Alberta: Employment Standards Code; minimum wage; Occupational Health and Safety Act.

• WCB-Alberta: Registering as an employer and personal coverage.

• Alberta Treasury Board and Finance: Tourism levy.