February 27, 2026
Budget in a Blink: Your 5-Minute Breakdown of the 2026 Alberta Provincial Budget
The Edmonton Chamber attended Alberta's Provincial Budget announcement on Thursday, February 26th, and we're breaking down what it means for Edmonton's business community.
Yesterday, the Government of Alberta released Budget 2026, sending a clear signal: Alberta is investing in infrastructure, workforce development, and public services to keep pace with growth. While this budget projects a $9.4B deficit, it begins to address some of the pressures created by recent population growth. As Minister Horner said today, “this budget is primarily about healthcare, classrooms, and the economy”.
For Edmonton’s business community, that creates real opportunities today, but with fiscal questions for tomorrow. The government is financing those investments with debt, not revenue, which creates a fiscal path we need to watch.
But are Edmontonians paying more taxes? Not directly.
- Alberta remains the only province without a Provincial Sales Tax.
- Corporate income tax remains at 8%.
- As a way to alleviate the taxes being paid by Albertans, the government increased the tourism levy from 4% to 6% and introduced a 6% vehicle rental tax - both levies aimed at capitalizing on the increased tourism in our province.
- New data centres would be affected by a new Data Centre Levy Framework that helps keep Alberta competitive globally in this sector.
- However, education property tax rates went up for both residential and non-residential properties.
If there's one consistent theme in this budget, it's jobs. Our members have been telling us for years: the jobs are there, but the workers aren't. This budget starts to address that mismatch. From skills training to education funding to capital projects, the province is signaling that its priority is to build the workforce Alberta needs and create opportunities that keep Albertans working, building, and staying in the province now and into the future.
- $384M for new skilled-trades learning spaces at NAIT, creating the right workers for the right workforce shortages.
- A $20M commitment for the Alberta Youth Employment Incentive extends it for three more years, making it easier for small businesses to hire youth at a time of record-high youth unemployment in the province.
- $96 million is invested to create thousands of new apprenticeship seats, 4,000 new post-secondary seats in fields like engineering, nursing, health care, and early childhood education, and increased K-12 funding will help hire 3,000 teachers and 1,500 education assistants over three years.
- The Investment and Growth Fund, a program known for its high return on investment, is expanding significantly by providing business owners with a financial incentive to close major deals in the province. Learn more about the projects here.
Taken together, these measures signal that the province recognizes labour supply as one of the biggest constraints on economic growth, and are the ingredients for a strong workforce.
The province’s three-year, $28.3 billion capital plan supports over 31,000 direct jobs annually. Edmonton’s share is significant and signals confidence in the capital city’s growth trajectory.
- The Edmonton LRT continues to be funded with a combined provincial and federal investment of $2.35 billion, alongside $152 million over three years for Edmonton’s Downtown and Coliseum Site improvement. Key road projects are moving forward, such as the Yellowhead Trail, Terwillegar Drive, and Highway 16 widening from Spruce Grove to west Edmonton. You can see a full list of Edmonton and Calgary projects here.
- Health facility planning is underway for the Stollery Children’s Hospital, Royal Alexandra Hospital, Grey Nuns and Misericordia. These are planning dollars today, but they represent future construction commitments that Edmonton’s business community should be tracking closely.
- Municipal funding through the Local Government Fiscal Framework remains stable, and Grants in Place of Taxes are restored to 100%, helping to ensure provincial dollars help alleviate municipal fiscal pressures.
When the workforce can’t access a family doctor, mental health services, or don’t feel safe in their city, it affects productivity, recruitment, and investment decisions. Business owners want our city to be a place where people want to work, live, and play.
- The budget maintains funding to support $15-per-day child care and invests in affordable housing projects expected to deliver roughly 13,000 new units. Province-wide, more than $100 million is directed toward public safety and crime-related initiatives.
What remains missing is a coordinated downtown safety strategy that brings enforcement, mental health response, and social supports together on the ground. For now, that burden continues to fall largely on municipalities.
Trade uncertainty created a cautious investment and planning environment. 90% of Alberta’s exports went to the United States last year, more than any other province.
- While the budget notes Alberta is relatively insulated from tariff uncertainty, the province’s economic outlook remains closely tied to global markets and oil prices. With the CUSMA review approaching, continued reliance on oil revenues creates a new level of fiscal and investment uncertainty that business owners should be watching closely.
- On the positive side, pipeline capacity is expanding, Asian demand for Alberta oil is growing, and our projected positive GDP growth signals our province's resilience to tariff uncertainty.
This budget invests in Edmonton in many positive ways, but it’s financing those investments with debt rather than revenues. We’re cautiously optimistic and will be watching the fiscal framework review closely to ensure the business community is well represented.
In the coming weeks, the Edmonton Chamber team will release a detailed analysis of the 2026-29 ministry business plans and other budget documents. In the meantime, be sure to secure your seat at our Provincial Budget Luncheon with Minister Horner to hear directly from him about how Budget 2026 impacts your business.
