How it's done
The business climate is the general economic environment that local businesses operate in. Reviewing and understanding the local business climate provides valuable insights about the economy, costs, risks, and incentives that may impact the success of your business. This activity will guide you to better understand the business climate in Mountain View Corridor and help you answer the following fundamental questions.
What is the business climate in Mountain View Corridor?
We have compiled the most important aspects of Mountain View Corridor’s business climate as an interactive dashboard below. This dashboard provides valuable economic, resident, household, dwelling and development indicators that may influence the success of your business.
What costs and assistance should I know about?
Whether you have a new or existing business it is critical to be aware of costs, incentives and grants that impact your business. This dashboard provides you with a snapshot of the major costs of conducting business in Mountain View Corridor and assistance available to Mountain View Corridor businesses.
In comparison to other provinces, businesses in Alberta enjoy a distinct advantage when it comes to corporate income taxes. With no provincial sales tax, no payroll tax, no health care premiums, lower personal income tax rates and the lowest fuel tax among provinces. Alberta continues to be a great destination to do business thanks to its infrastructure, strong urban growth centers, increasingly diverse economy, growing population and lucrative investment opportunities.
As of July 1, 2019, the general Alberta corporate income tax rate is 11 percent. The Alberta small business income tax rate is 2 percent for eligible small businesses with income up to $500,000.
The combined federal/provincial corporate income tax rate in Alberta is 26 percent for general businesses and 13 percent for small businesses, and a competitive corporate income tax rate is in place for manufacturers. Businesses also benefit from the fact that Alberta has no inventory tax, no machinery and equipment tax and no payroll tax, which are common in many other provinces and U.S. states. Learn more
The Alberta government also offers additional tax credits to encourage capital investment into a wide variety of sectors.
Want to compare the mill rate between communities click here
Off-site levies are charged for the purpose of reimbursing municipalities for the capital costs associated with new developments where subdivision of land is required.
Development levies are charged with respect to any proposed development within a municipality that have not been subject to a previous servicing agreement.
Development costs, levies and charges are specific to each municipality.
Carbon Levies and Rebates
Provincial Carbon Levy
As of January 1, 2017, a carbon levy is now charged on all fuels that emit greenhouse gas emissions when combusted at a rate of $20 / tonne in 2017 and $30 / tonne in 2018. The rate is based on the amount of carbon pollution released by the fuel when it is combusted, not on the mass of fuel itself. These include transportation and heating fuels such as diesel, gasoline, natural gas and propane. The levy does not apply to electricity.
Over the next 5 years, revenue from the Climate Leadership Plan, including the carbon levy, is expected to raise $9.6 billion, all of which will be reinvested in the economy and rebated to Albertans. This includes $3.4 billion towards investments in large scale renewable energy, bioenergy and technology and $865 million to pay for a cut in the small business tax rate from 3% to 2%.
More information on the carbon levy can be found at the Government of Alberta, click here
Federal Carbon Levy
Beginning January 1 of 2018, the Canadian federal government will begin charging $10 / tonne of greenhouse gasses emitted by fuels. This amount will increase by an additional $10 / tonne annually until reaching the maximum of $50 / tonne in 2022.
There will be no charge to emitters in provinces whose existing carbon levy is equal to or greater than the federal amount. This will apply to Alberta until 2021, when the difference between the Alberta carbon levy and Canadian carbon levy will be added to the total of the Alberta levy to reach the new minimum ($40 / tonne).
Alberta’s wage and salary rates are competitive with the rest of Canada and with the United States. When total compensation rates are compared, Alberta provides a significant cost advantage compared to the U.S., largely because of publicly funded health care.
Detailed wage and salary information for over 400 occupations in Alberta is available here.
Alberta is one of the most affordable places in Canada to live. Here’s a look at some of the financial benefits of life in Alberta.
Families in Alberta typically enjoy a higher family income than other parts of Canada. Median total single-family household income is $141,754.50. Also, 50.1% of household incomes are equal to or greater than $125,000.
Lower cost of living
Alberta offers many cost-of-living advantages:
- No provincial health-care premiums.
- No provincial sales tax (PST). Residents in every other province pay up to 10 per cent in addition to the Goods and Services Tax (GST) paid by all Canadians.
- Tax rebates and credits are available to further help with your finances.
You can compare how Canadians spend their incomes in major cities here.
Owning your own home is more affordable in Alberta than in many other Canadian cities. Alberta housing prices are among the lowest when compared to equivalent cities in British Columbia or Ontario.
Every year, people from across Canada and all over the world choose Alberta as an ideal place to work and live. Alberta's high standard of living, diverse and welcoming communities, and beautiful landscapes make it a wonderful place to call home.
Businesses in Alberta benefit from:
No provincial sales tax
No payroll tax
No inventory tax
No machinery and equipment tax
No health care premiums
Free provincial health care insurance
Lower personal income tax rates
The lowest fuel tax among provinces
Small business income tax rate of just 2%
Corporate income tax rate of 11%
The Workers Compensation Board (WCB) of Alberta was created by government to administer the Workers Compensation Act for the province’s workers and employers. Funded by employers the WCB provides cost-effective disability and liability insurance for work related injury and illness. The WCB compensates workers for lost income and coordinates the health care and other services that may be required to recover from a work-related injury.
Learn More: Workers’ Compensation Board of Alberta
|Average Cost for All Manufacturing (per $100 Payroll)||(Per $100 of insurable earnings)||$0.24 - $2.94|
|Average Rate for Office Workers||(Per $100 of insurable earnings)||$0.13 - $0.25|
|Maximum Weekly Benefit||(90% of maximum insurable earnings $98,700)||$1,225.61|
Source: WCB rates by sector and industry
The Canadian Revenue Agency (CRA) is the governing federal body for all legislation related to employment insurance (EI) in Canada. Businesses must deduct employment insurance from an employee’s insurable earnings if that employee is in insurable employment during the year. Insurable employment includes most employment in Canada under a contract of service (employer – employee relationship). There is no age limit for deducting EI premiums.
|Taxable Base||Annual maximum insurable earnings||$51,300.00|
|Rate %||Employer contribution rate||2.282%|
|Average Among Existing Employers||Annual maximum employer contribution||$1,170.67|
Source: Payworks Payroll Legislation