Call for measures to address small business challenges and entrepreneurial drought left unanswered, instead met with tax increases
Edmonton, February 26, 2026 – The Canadian Federation of Independent Business is (CFIB) sounding the alarm over today’s provincial budget, which pairs a significant $9.4B deficit with no meaningful relief for small businesses—and introduces further cost pressures through an increase in the education property tax rate.
“Small business owners were looking for signals that government understands the pressure they are under. Instead, Budget 2026 asks them to shoulder even more,” said Keyli Loeppky, CFIB’s Director of Alberta & Interprovincial Affairs. “Property taxes are one of the most harmful forms of taxation because they must be paid regardless of whether a business is profitable. Increasing this burden forces many businesses to delay hiring, scale back investment, or reconsider their future altogether.”
According to CFIB’s Business Barometer®, Alberta entrepreneurs cite insurance costs, tax and regulatory costs, and wage costs as their most significant cost pressures. Many are still rebuilding after years of economic disruption, and confidence remains fragile amid trade uncertainty. These pressures are already contributing to fewer start-ups, delayed investment, and cautious hiring decisions—and Budget 2026 risks making the situation worse.
While CFIB welcomes the government’s decision to eliminate the ad valorem wine tax structure—which had created significant administrative complexity and uncertainty for small businesses—the benefit is undermined by the decision to increase the overall tax rate of the flat tax model.
Federal data cited in CFIB’s latest Enterprise Pulse shows Alberta recorded a fifth consecutive quarter of negative net business creation in Q1 2025 — meaning more businesses closed than opened. Against this backdrop, CFIB is concerned that a large deficit combined with rising taxes and a lack of competitive measures will worsen the environment for entrepreneurship.
CFIB is particularly disappointed the government missed the opportunity to act on key recommendations that would provide immediate relief. These include reducing the province’s 2% small business tax rate and increasing the eligibility threshold to $700,000 to account for inflation, lowering Alberta’s insurance premium tax to help address the high cost of insurance, and addressing the disproportionate education property tax burden shouldered by small firms. These changes would have allowed small business owners to reinvest in their operations, create jobs, and support their communities.
“If governments want long-term economic resilience and a stable tax base, they must make entrepreneurship more attractive by lowering the cost of doing business.” said Kayode Southwood, CFIB’s Senior Policy Analyst for Alberta. “While Alberta touts the lowest corporate taxes in the country, the province has work to do on reducing the small business tax rate to compete with provinces like Saskatchewan, Manitoba, Nova Scotia and PEI.”
“More businesses are closing than opening, and nearly half (45%) of Alberta small business owners are advising their own children against starting a business,” concluded Loeppky. “Those are big red flags for anyone concerned about Alberta’s economic future. Alberta has long been a place where entrepreneurs could thrive, but that advantage is eroding. Small businesses are ready to invest in their communities — but they need a policy environment that supports them. The Alberta government significantly missed the mark this year.
For media enquiries or interviews, please contact:
Keyli Loeppky, CFIB
587-580-9140
keyli.loeppky@cfib.ca
About CFIB
The Canadian Federation of Independent Business (CFIB) is Canada’s largest association of small and medium-sized businesses with 103,000 members (10,000 in Alberta) across every industry and region. CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.
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