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Assessment & Tax Bill

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Assessment & Tax Bill

​​​Your property tax bill is based on the budgetary needs of The City (municipal tax) and the province (provincial tax) multiplied by the portion allocated to you. Your portion is determined by the value of the property you own in Calgary, which is your property assessment.

My assessment went down, so my taxes should also go down?

Unfortunately, no. The portion of property tax you’re responsible for doesn’t change from year to year, even if your assessment increased or decreased from the previous year. The change in your portion is based on your assessed value in relation to the overall market change in Calgary.

Regardless if your portion changes or not, several other factors impact your tax bill.

Estimate your tax bill using our property calculator. This helpful tool walks you through the tax equation line-by-line.

Learn more about how property taxes are calculated here.

Understanding the typical market change in Calgary

In 2020, the overall market change in residential market is negative four per cent and on the non-residential side it is plus two per cent.

 

If your property’s approximate year-to-year per cent change in assessment is: 

Less than the typical per cent change (-4%): The portion of taxes owed will decrease.

The same as the typical per cent change (-4%): The portion of taxes owed will stay the same.

More than the typical per cent change (-4%): The portion of taxes owed will increase.

The median or typical residential home value in Calgary for 2020 is $455,000

Last year the typical home was assessed at $475,000. That means it dropped by $20,000 or approximately four per cent. That is where the negative four per cent for the residential market change comes from as described above.

What does this mean to the tax allocated to me?

  • The portion of the tax allocated to you would stay the same in 2020, if your home assessed value dropped by minus four per cent. 
  • The portion of taxes allocated to you would increase by four per cent in 2020, if your assessed value stayed the same (zero change).

This is the difference between the typical market change of minus four per cent and your zero change. The residential market change is only one factor that might impact your tax bill and does not account for increases in Municipal and Provincial tax.

Property tax bills include a municipal and provincial portion

The amount you see on your property tax bill include both a municipal and a provincial portion. For residential taxpayers, this amounts to approximately 63 per cent for municipal services such as police, fire, transit, streets and parks, while 37 per cent of the amounts collected are sent to the province. These two portions are calculated using a different rate. The annual property tax bill arriving this June shows a separate line for municipal and provincial tax and combines them together to show your total amount owed. The provincial tax rate is set by the province and all the provincial tax revenue is remitted to the province.

Municipal tax increase

The residential municipal tax rate increased from last year by approximately 7.5 per cent. This is made up of:

  • A 0.75 per cent increase because of the reductions in fine revenue, biological testing cannabis tax revenues, and grant adjustments in the October 2019 and 2020 provincial budgets.
  • A 6.76 per cent increase because of a shift in tax responsibility​ from non-residential tax payers to residential tax payers.

Provincial tax increase

The provincial property tax portion for 2020 is increasing by approximately 4.5 per cent on residential properties to recover the balance of the 2019 provincial education requisition that was underestimated due to the delay in the province releasing their budget. 

In February, the province released it’s 2020 provincial budget that resulted in additional changes to the provincial portion of your 2020 property tax bill. The provincial education requisition increased by an additional 3.7 per cent, which combined with 2019 changes will result in an increase of approximately $130 a year for the typical home in Calgary.

What does this mean for a typical home in Calgary?

Using the $475,000 typical home from last year, if the assessment dropped by the overall market change (minus four per cent) it would come down to $455,000 this year. Its portion of tax allocated to it would not change. But their tax bill will still increase to account for the expanded budget requirements of the municipal and provincial governments.

The property tax bill in this case will increase by approximately $23 a month or $280 a year after the 1.5 per cent Municipal tax rebate. An estimated breakdown on those amounts is as follows:​

​​The City of Calgary

  • $135 more per year as a result of a shift in tax responsibility from non-residential tax payers to residential tax payers.​

​​The Govern​ment of Alberta

  • ​​$15 more a year as a result of the ​reductions in fine revenue, biological testing, cannabis tax revenue and grant adjustments in the October 2019 provincial budget.
  • $130 more a year to recover the balance of the 2019 provincial education requisition that was underestimated due to the delay in the provincial budget, and 2020 increases.​

Can I get an estimate of my 2020 property tax bill?

Yes. You can use the property calculator on Calgary.ca/assessment to get an estimate of what your bill will be. It breaks down all the factors that go into the amount you see on your tax bill. Note that the calculator can only provide you with an estimate.

The 2020 property tax will be mailed at the end of May and due by June 30.

But knowing an estimate of what your bill will be can help you prepare and budget for the year.

What if I have questions regarding my property assessment?

The City of Calgary issued more than half a million Property Assessment Notices on Jan. 2, 2020. This officially opens the Customer Review Period which runs until March 10. 

The Customer Review Period is your opportunity to check, review and compare your property assessment values for fairness and equity. For more information, visit the Customer Review Period webpage or log into your secure account at Assessment Search​

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