How property tax is divided in Calgary

As a homeowner in Calgary, you probably have a lot of questions about your property tax. How is it calculated? Where does my money go? How much of my money goes towards the city versus the province? Property tax plays a major role in city services as well as provincial offerings, so it’s important to know how we all contribute to it. We’re here to help bring some clarity to these questions as the 2019 year comes to an end.

Before your taxes are collected each year, there are several steps that need to occur first to calculate how much money you actually owe. “In November of each year, Council sets the budget needed to pay for services all Calgarians value and benefit from including police, transit, parks, recreation and more” (City of Calgary). Once the rate is decided upon, it is allocated to residential and non-residential properties within the city and the rate along with the budget is set in the spring. This budget is supported by property tax, alongside other income sources such as provincial grants, transit fees, license fees, etc.

 

The next step is assessment; your property value will be estimated based the current market value. The amount of property tax you owe each year will be based on this assessment, so the amount can vary as the market fluctuates. Once this has been determined for residential and non-residential properties, you will be mailed a bill at the end of May showing the amount of municipal and provincial taxes you owe. If you would like to calculate your tax prior to this, use the City ofCalgary’s property taxcalculator to get an estimate on what next year’s tax could be. This will also lead you to links on where your taxes go and how your property is assessed.

 

Once you pay your property tax, it is then divided up into city services and provincial services. “In 2019, about 63 per cent of all residential property taxes went towards City services, while about 37 per cent will be sent to the Government of Alberta” (City of Calgary). “The 2019 Alberta budget will increase the amount of property tax it will collect from the City in 2020, equating to an additional $15.5 million paid to the province.”

 

If you’re still looking for more information on how your property tax is used to help benefit our city and our province, visit the City of Calgary website for frequently answered questions. Here you will find answers to things like:

 

• Where do my property tax dollars go?
• What is the municipal property tax rate increase this year?
• What is the combined municipal and provincial property tax rate increase for 2019?
• How will this impact Calgary households?
• What if I’m having problems paying my taxes?

 

You’ll find this and more on the City of Calgary website. For the most up-to-date information on all things related to the City of Calgary’s property tax, visit their website here.