Tax Instalment Payment Plan (TIPP) recalculation
A decrease or increase to your January TIPP payments is not related to property tax rate changes or November budget decisions made by Council. Any potential change to the property tax rate is unknown at the time of the adjustment. The changes to your TIPP payments are a due to a calculation required to adjust your tax account based on what has occurred in the past year.
TIPP recalculation letters sent out at the end of November
Approximately 60 per cent of Calgary taxpayers are enrolled in TIPP and use it as the method to pay their property taxes. All Tax Instalment Payment Plan (TIPP) accounts are reviewed each year in November to determine the amount of the monthly instalment from Jan. 1 to June 1 of the next year. The revised payment amount becomes your instalment beginning Jan. 1. Property owners whose monthly instalment is going up or down receive a letter informing them of the change to their instalment amount 30 days in advance of the adjusted withdrawal.
Calculating your Jan. 1 to June 1 instalment amount
The January 1 to June 1 monthly instalments 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. Any potential property tax rate changes or budget discussions that may be happening at the time are not factored into the calculation.
Calculating your July 1 to Dec.1 instalment amount
When you receive your annual tax bill in May your instalments from July 1 to Dec. 1 are adjusted to reflect the year’s actual tax levy. Current year’s tax bill minus payments made to date divided by six. The revised instalment amount ensures your tax account is paid in full by year-end.
Your annual tax bill 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.