Municipal tax share
Distributing property tax more fairly
City Council has gradually decreased the distribution of municipal tax for businesses since 2001. In 2019, Council approved changes to the municipal tax share between 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 changes 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 changes to the tax share 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).
Adjusting the tax share made Calgary more competitive, lowering our non-residential property tax per $1,000 of assessed property value below the national average*.
Additional Council decisions that have supported businesses:
- 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 redistribution from non-residential to residential properties
- Council changed the municipal tax share 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%.