How your property taxes are calculated
Before your property tax bill is created and mailed at the end of May, a City budget is set by Council, and all properties in Calgary must be assessed and a tax rate set.
BUDGET (How much money is required)
- In November of each year, Council sets the budget needed to pay for services all Calgarians value and benefit from including police, transit, parks, recreation and more.
- The budget is supported by property taxes, plus other sources including license fees, provincial grants and user fees such as transit fees.
- Once the required tax revenue is identified, it’s allocated to the residential and non-residential properties.
- The provincial budget and property tax rate is set in the spring. The City collects provincial property tax on behalf of the Province and remits it to them.
ASSESSMENT (Property value & distribution of taxes)
- Your property assessment is an estimate of your property's market value, the amount it likely would have sold for July 1 of the year prior to the mailing of the assessment notice. Your property assessment is mailed to you in January of each year/annually.
- The assessment process follows legislative requirements set by the Province on how properties are assessed to determine the values for all properties, which in turn determines the distribution of municipal taxes.
- Your property assessment is used to determine your share of taxes, relative to all properties in Calgary, to meet The City's budget needs.
- The increase or decrease you’ll see in your property tax bill is based on your year-to-year assessment change related to the overall market change and the change in the tax rate.
- Even if the yearly tax rate and your year-to-year assessment remains unchanged, it doesn’t mean the portion of taxes you pay will also remain unchanged.
TAXES (Collecting your portion)
- Based on the budget and total value of all assessed properties, there’s a tax rate set for residential and non-residential properties.
- Your individual share of municipal property tax is calculated by multiplying your property assessment by the tax rate determined by the property type you own.
- The annual property tax bill that is mailed to you at the end of May shows a separate line for municipal and provincial tax and combines them together to show your total amount owed.
Still have questions? Visit the Property tax and assessment frequently asked questions page.