Alberta Budget 2026: Rental Car Tax and Data Centre Levy Target $9.4B Deficit

EDMONTON, AB — Alberta's Budget 2026, tabled today by Treasury Board Minister Nate Horner, introduces two new revenue streams aimed squarely at closing a projected $9.4 billion deficit for the 2026-27 fiscal year: a six percent tax on rental cars and a two percent levy on large data centres.

The rental car tax kicks in January 1, 2027, applying to all passenger vehicles picked up in Alberta. Expected haul? Thirty-six million dollars in the first full year. If you're renting a vehicle for a Calgary Stampede road trip or a Banff getaway, that's an extra six bucks on every hundred you spend at the counter.

The Data Centre Math

The data centre levy, effective December 31, 2026, targets computing equipment at facilities drawing 75 megawatts or more from the provincial grid. That's two percent of equipment value for grid-connected operations, dropping to one percent if a facility generates its own power but stays tethered for backup. Go fully off-grid? No levy.

The kicker: the levy is fully creditable against Alberta corporate income tax, meaning it's less a new cost and more a reallocation of where tech giants pay their dues. The move follows Bill 12, introduced last December, which amended the Alberta Corporate Tax Act to make room for the charge.

Why Now?

Non-renewable resource revenue—oil, primarily—has cratered, while population growth and demand for public services have spiked. The deficit math is blunt: Alberta needs cash, and fast. The rental tax and data centre levy are part of a broader strategy to diversify revenue without introducing a provincial sales tax, a political third rail in Alberta.

For Calgarians, the rental car tax is immediate and visible. Business travelers and tourists will feel it first, potentially nudging some toward ride-shares or personal vehicles. The data centre levy, meanwhile, plays a longer game—anchoring AI and tech infrastructure in Alberta while ensuring the electrical grid doesn't buckle under the weight of power-hungry server farms.

Minister Nate Glubish (Technology and Innovation) and Minister Nathan Neudorf (Affordability and Utilities) are coordinating the data centre strategy, which includes Bill 8's requirement that builders pay for grid upgrades and incentivize self-generation.

Budget 2026 doesn't solve the deficit overnight, but these two levers—one aimed at everyday consumers, the other at Silicon Valley's northern ambitions—mark a clear pivot in how Alberta funds its future.