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Business tax bill and tax rate calculation

Business tax rate calculation

The business tax rate is set by City Council. Council annually reviews The City's operating and capital budget required to provide City services to the community and determines what portion of the needed revenue will come from business tax.

The business tax rate is calculated by dividing the required revenue by the total business assessment:

business tax rate = required revenue ÷ total business assessment

Business tax rates: current and historical

Business tax bill calculation

Business tax is levied on any business that occupies space within Calgary during the calendar year. Business taxes are based on the calendar year, January 1 to December 31.

Business tax does not reflect a specific type of business or the profitability of a business. It is levied on the space that is being used for business purposes and should be considered a part of the regular operating expenses of running a business within Calgary.

Your business tax bill is calculated by multiplying the assessed value of the business space (as found on your business assessment notice) by the tax rate set annually by City Council:

business tax bill = assessed value of business space x business tax rate

For example, using $10,000 assessed value and 2018 business tax rate 0.0161:

$10,000 x 0.0161 = $161

Business tax payment is due on the date shown on the tax bill.