By: Emmanuel Ajayi

What You Need to Know About Property Taxes in Calgary

Tags: Property Taxes

If you’ve ever been a homeowner then you know that you must pay an annual property tax based on the assessed value of your home. You may also have a vague idea that property taxes support your city in some way.  If that’s the extent of your knowledge then read on for the answers to important questions that explain this tax further.

What does my property tax pay for?

As you might expect, property taxes are used by the city to provide a variety of essential services including police and fire operations, garbage pick-up, road development and maintenance, public transit, parks and recreation facilities, social services and more. About 63% of your property taxes remain in Calgary to support the city while the other 37% goes to the Alberta government. However, the portion that stays with the city provides less than half of what Calgary needs to maintain city services. The additional funds needed come in the form of grants from the provincial government and what the city collects through different fees and permits such as bus passes, dog licences, etc.

Why do the rates change every year?

Each year the city takes a close look at a number of factors such as how city services are meeting the needs of Calgarians and what priorities residents have for the city. Therefore, the percentage increase in property taxes will reflect how much additional funding is needed. For example, the municipal property tax increase for residential properties in 2019 was 6.67%.

How is my personal bill decided?

Your property tax bill is based on an assessment of your home’s fair market value, as judged by the city the previous July 1st. To determine your property’s value, three years of real estate data showing what similar homes in your neighbourhood sold for are reviewed. The assessment also considers things like your home’s size, age, lot size and location. In addition, any renovations that you’ve completed will be taken into account. The assessed value of your home will then be multiplied by the city’s tax rate for the current year to determine the amount of your bill.

When do I pay my property taxes?

Expect to receive your property tax assessment notice by mail in January with a payment due date of June 28th of that year. If you’d prefer not to pay your whole bill at once, you have the option of paying monthly. It should be noted, however, that you must pay your tax bill either directly to the City of Calgary or through your bank. Using a credit card is not an option.
And, if your like to know more about property taxes, here’s a link to the Calgary city website.