Alberta Finance reports that the province will see an increase in provincial tax credits for 2007.

This latest increase brings the province’s basic personal exemption, spousal exemption and eligible dependent amounts to $15,435 from $14,899, an increase of $536, or 3.6%, over last year.

A typical family of four can earn up to $39,200 with the Alberta Family Employment Tax Credit before paying any provincial income tax. An estimated 27,200 fewer Albertans will pay provincial income tax in 2007 because of the increase, it said.

The government characterizes the move as part of the continuing process of indexing the tax system to inflation. Albertans already benefit from the highest basic and spousal amounts in Canada, it said. If Albertans and Alberta businesses lived or were located in any other province, they would pay an additional $7.2 billion in taxes, it added.