Property taxes serve as the backbone of municipal finances, supporting essential services and local development projects. As you’re likely aware, they can vary significantly across different cities due to unique economic landscapes, population densities and local government policies.

By comparing property taxes in Calgary against those in six other major Canadian cities, I hope to shed light on some of the reasons contributing to the different rates.

Comparing property taxes

Local governments consider property assessments, tax rates and economic conditions to determine the revenue required for maintaining public services and infrastructure. Throughout the country, cities use diverse methods to calculate this tax and a number of considerations are also involved.

In looking at the cities below, keep in mind that the tax rates are based on September 2021 data, which is the most recently available.

1. Toronto

As the largest city in Canada, Toronto has a robust economy and extensive urban infrastructure. Its property tax rates are among the highest in the nation, reflecting the city's demands for essential services and public amenities.

The city's high property values contribute to its higher tax base, allowing for substantial revenue generation to support ongoing development projects. The residential tax rate for Toronto was approximately 0.6% to 1.0% of the property's assessed value as of 2021.

1. Vancouver

Vancouver’s property taxes are influenced by the city's focus on sustainable urban development and affordable housing initiatives. Property assessments take into account various factors, including location and property type, contributing to a tax system that aligns with the city's environmental and social objectives. The 2021 residential property tax rate in Vancouver was estimated to be around 0.2% to 0.3% of the assessed property value.

1. Montreal

One of the most populous cities in Canada, Montreal relies on property taxes to fund a wide range of services and infrastructure projects. Tax rates depend, in part, on the borough in which the property is located. The city's approach enables it to maintain essential services while remaining relatively affordable. The average residential property tax rate in Montreal can vary between 1.0% and 1.5% of the property's assessed value.

1. Edmonton

Edmonton shares similarities to Calgary in its economic dependence on the oil industry. Since property taxes are essential for supporting municipal operations and development projects, the city strives to maintain a balanced approach to tax rates and assessments. The average residential property tax rate in Edmonton was roughly 0.7% to 1.2% of the property's assessed value as of 2021.

1. Ottawa

Ottawa, takes a measured approach to property taxation. The city’s property tax system is characterized by a blend of assessments and rates that contribute to funding citywide initiatives and maintaining its status as a political and administrative hub. 

The tax rate varies based on property location and assessment. As of 2021, the estimated property tax for the City of Ottawa was around 1.0% to 1.5% of a property’s value.

1. Winnipeg

With a central location and diverse economy, Winnipeg employs property taxes to fund local services and infrastructure projects. Taxation rates vary in the city based on the property's assessed value and the applicable school division. The average residential tax rate was approximately 1.0% to 1.5% of the assessed 2021 property value.

1. Calgary

Calgary's property tax structure is closely linked to its dynamic economy, with fluctuations tied to the performance of the energy sector. The city's tax rates reflect its commitment to delivering essential services and funding infrastructure development.

At times, the volatility of the oil industry has led to varying property values, subsequently impacting the city's tax revenue. In 2021, the residential property tax rate in Calgary was approximately 0.5% to 1.0% of the assessed property value.

Finally

While these tax rates are approximate and can change over time, they do offer an interesting picture of how Calgary fares compared to other large Canadian cities. If you have further questions, I would be happy to help you find the answers.