Red Deer
Review the Business Climate
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 Red Deer and help you answer the following fundamental questions.
What is the business climate in Red Deer?
We have compiled the most important aspects of Red Deer’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 Red Deer and assistance available to Red Deer businesses.
Red Deer has an excellent business environment with many advantages that support businesses and allow them to be competitive in the provincial, national and world markets. Some of the advantages that Red Deer businesses enjoy are:
- no business taxes
- no capital tax
- no machinery and equipment tax
- no payroll tax
Red Deer 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.
Alberta Investor Tax Credit (AITC)
Capital Investment Tax Credit (CITC)
Want to compare the mill rate between communities? Click here
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
Red Deer 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.
Higher Incomes
Families in Red Deer typically enjoy a higher family income than other parts of Canada. On average, Red Deer single-family household income after tax is $93,098 which is just above the provincial average of $92,300.
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
Affordable Housing
Owning your own home is more affordable in Red Deer than in many other Canadian cities. Alberta housing prices are among the lowest when compared to equivalent cities in British Columbia or Ontario. The average 3 bedroom house price in Red Deer is $349,900 (compared to the provincial average of $395,694) which makes Red Deer a very affordable place to call home.
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 | ||
|---|---|---|
| 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.
Learn more: Canada Revenue Agency, Employment Insurance for Employers
| Employment Insurance | ||
|---|---|---|
| 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
Every year, people from across Canada and all over the world choose Alberta as an ideal place to work and live.
Red Deer’s high standard of living, diverse and welcoming neighbourhoods, 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%
Red Deer College is proud to be part of the fabric of what makes central Alberta such a dynamic place to live, to work and to play. RDC has played a prominent role in helping train our highly skilled and educated workforce since it was founded in 1964, and is a major asset to Red Deer and central Alberta's economy.
Among many teaching and learning spaces at the College, the Centre for Innovation in Manufacturing provides opportunity for instructors and students to collaborate with local businesses and entrepreneurs to bring prototypes and innovative ideas to life. This Centre also provides a unique space where students participate in applied research, preparing RDC’s highly sought after graduates to directly impact the strength of many sectors in our region.
As one of seven Schools that house the College’s robust mix of programs, RDC’s Donald School of Business is located in downtown Red Deer. The College’s downtown campus provides a great connection to our region’s business community as a hub of learning and research in business administration, management, marketing, human resources and many other disciplines.
RDC offers more than 100 different programs to thousands of learners each year. On March 1, 2018, the College was given approval by the Government of Alberta to transition to a university. RDC will continue to offer the same breadth of programming it does now, and welcomes the opportunity to grant its own degrees. The College’s transition to a comprehensive regional teaching university will impact students for generations to come. Perhaps most importantly, becoming a university will give more students the opportunity to study, work and raise a family in central Alberta – keeping the best and brightest here.
RDC is proud of its legacy, providing practical learning opportunities for diverse learners to ensure graduates are ready to join central Alberta’s vibrant businesses and industries, contributing to one of the most thriving economic regions in Canada.
How do I use this information?
Having access to business climate statistics and information is one thing, but it's quite another to use data effectively and in a way that will benefit your business. This next section will help you do just that. Learn how to use this information to make better business decisions.
Monitor the local business climate
On-going assessment of the business climate is an essential part of operating a competitive business. In any business climate, there are numerous factors outside your control that will impact your business, both positively and negatively. The health of the economy impacts all businesses, but small businesses usually feel the effect of economic changes faster than big businesses. Improvements in the economy typically provide a rapid increase in new opportunities for small businesses, while an economic downturn can have a significant and prolonged negative impact.
Unfortunately, you can’t influence the economy, but you can monitor the business climate indicators provided above and then take the necessary actions to minimize risks to your business. Staying up to date with the business climate can also help you identify new opportunities that your business can take advantage of.
Know your costs
All industries are unique and incur different types of costs when starting or operating. Understanding these costs is essential when it comes to setting prices, budgeting and planning for growth or downturns. We’ve provided some of the local costs associated with taxes, development and labour that often get overlooked by businesses. There may be other municipal and provincial costs that apply to your business so we encourage you to contact us to find out more.
Where can I learn more about the business climate?
While we are providing you with a range of valuable information about the business climate, the fact is that there's much more available. In this section we provide you with links to other websites that will supplement our information and help to keep your finger on the pulse.
There may also be other municipal and provincial costs that apply to your business so we encourage you to contact us to find out more.
| Alberta Economic Dashboard |
| Alberta's Treasury Board and Finance |
| Statistics Canada |
| OECD |
