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Municipal tax shift

Municipal tax shift

Addressing the business property tax issue

City Council has gradually decreased the distribution of municipal tax for businesses since 2001. In 2019, Council approved a tax shift from non-residential to residential property owners to support businesses and our local economy. Today, the distribution of municipal taxes for non-residential properties is 48 percent vs 52 percent residential.

Supporting businesses and our local economy

Since 2016, $259 million in one-time tax relief has been provided to help businesses impacted by sudden shifts in Calgary's property values.

  • In 2021, approximately, 2,000 businesses saw their municipal tax increased capped at 10% of their 2021 amount

  • In addition, $30 million is being directed to support Calgary-based businesses most impacted by COVID-19.

Council’s approval of the tax shift meant a combined decrease of 12.07% for non-residential properties in 2020 (or $2,640 per $1 million of non-residential (business) assessed property value annually - $220 per month).

The tax shift has made Calgary more competitive, lowering our non-residential property tax per $1,000 of assessed property value below the national average*.

Council went further to support businesses in genuine need

Since 2017, Council has also provided additional relief through the Municipal Non-Residential Phased Tax Program (PTP). Over $240 million tax relief has been provided to to support local businesses and our economy to date.

Additional Council decisions that have supported businesses:

  • A business tax freeze was put in place prior to 2001 that restrained the growth of business taxes – the freeze continues despite the business tax being consolidated into the non-residential property tax in 2019.
  • Business tax phased out over seven years and eliminated in 2019 to enhance Calgary’s economic competitiveness.
  • Tax room generated from lower than anticipated provincial education requisition has favoured non-residential taxpayers.
  • Budget reduction of $16.5M at the beginning of 2019 resulted in a minor shift from non-residential to residential properties
  • Council shifted some of the municipal tax responsibility from non-residential to residential properties in 2020.

In 2001, the proportion of non-residential property tax and business tax was 62%. This percentage has declined continuously over the past 19 years and currently rests at 48%.

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