Tax Instalment Payment Plan (TIPP) recalculation
The City of Calgary Tax Instalment Payment Plan (TIPP) is our most popular property tax payment method. You pay the same amount as your annual property tax bill, but instead of one large lump sum payment in June, you pay smaller monthly instalments.
The smaller monthly payments help you save time and money by making your budgeting easier and removing the risk of late payment penalties.
Whether you’re looking to join TIPP or already on it, you may be wondering how your instalments are calculated and why the instalment amount can change.
TIPP instalments don’t impact the amount you pay per year, they are only adjusted to reflect changes to your tax bill.
The January 1 to June 1 monthly instalment amount is are calculated by dividing your last year’s property tax by 12, taking into consideration any applicable adjustments affecting your tax account, rounded up to the nearest dollar.
The City reviews your January to June 1 instalment amount in November and the revised payment amount becomes your instalment beginning January 1. Property owners whose monthly instalment is changing receive a letter informing them of the change to their instalment amount 30 days in advance of the adjusted withdrawal.
The changes to your TIPP payments are required to adjust your tax account based on what has occurred in the past year. Any potential property tax rate changes or budget discussions that may be happening at the time are not factored into the calculation.
When you receive your annual tax bill in May your instalments from July 1 to December 1 are adjusted to align with it. This is calculated by taking your current year’s tax bill minus payments made to date divided by six. The revised instalment amount will start on July 1 and is shown on your annual tax bill.
The change percentage between your June and July instalment is not equal to your year-to-year tax bill change. It’s simply the change required to ensure your tax account is paid in full by year-end.
TIPP payments are made monthly, and any yearly tax change is spread over the last six months of the year. Non-TIPP participants pay their full property tax bill at the end of June, including any change in their yearly amount.
In late May, Property owners who participate in TIPP will receive their bill with a revised instalment notice at the same time non-TIPP participants receive their tax bill. For TIPP participants, their property tax bill is not a request for payment and will show:
- the credit resulting from the instalments made Jan. 1 to May 1
- the June 1 instalment amount
- the new instalment amount beginning July 1
The graphic below shows the TIPP yearly cycle. The triangle represents when you receive your bill. The star shows when you would receive notice of a TIPP recalculation if your payment amount was changing.