Municipal tax share
We are gradually shifting to improve fairness between homeowners and businesses. City Council approved a plan in November 2023 to gradually shift 1% of the tax share from businesses to homeowners. This will take place each year from 2024 to 2026.
Your property tax rate depends on your property type
- Residential properties (e.g., houses, condos, apartments) pay the residential tax rate.
- Non-residential properties (e.g., commercial or industrial buildings) pay the non-residential tax rate.
A gradual shift
By redistributing the tax share more evenly between businesses and residents we believe we can bring greater balance to Calgary’s property tax system.
We aim to:
- Ensure fairness for all taxpayers
- Preserve Calgary’s business-friendly environment
- Stimulate local employment and investment
- Create a stronger, more resilient economy
What is Tax Share and Tax Rate Ratio?
Tax Share
The proportion of total property tax revenue paid by residential and non-residential properties. It reflects how the total tax burden is divided between these two property classes. These are typically expressed as percentages.
Please see the Distribution of municipal taxes chart above for more information.
Tax Rate Ratio
A comparison of how much more non-residential properties pay in property tax relative to residential properties, assuming the same assessed value.
For example, a tax rate ratio of 5:1 means a non-residential property pays five times more tax than a residential property of equal assessed value.
| Year | Non-residential | Residential |
|---|---|---|
| 2025 | 46% | 54% |
| 2024 | 47% | 53% |
| 2023 | 48% | 52% |
| Year | Tax Rate Ratio |
|---|---|
| 2025 | 4.64:1 |
| 2024 | 4.37:1 |
| 2023 | 4.26:1 |
What this means for taxpayers
This gradual tax shift changes the distribution of existing tax responsibility — not the total amount collected. A 1% redistribution in tax share will result in a:
- 2% increase in taxes for residential property owners each of the three years.
- 2% decrease for non-residential (business) properties each of the three years.
These figures do not include changes due to property assessment values or budget decisions.
Why this matters
A tax system that leans too heavily on businesses makes Calgary less attractive to investors and job creators. If the 5:1 ratio is reached:
- Council would be forced to shift more of the tax burden onto homeowners
- It would limit Council’s flexibility to make gradual, strategic tax policy changes
- It would put Calgary’s business competitiveness at risk
Key points to keep in mind:
No new taxes have been introduced. This is a rebalancing of the current tax share.
The total amount The City collects remains the same. All changes to the budget are communicated through the Budgetary process.
This shift:
Keeps Calgary within the legislated 5:1 tax rate ratio
Enhances business retention and competitiveness
Promotes long-term fairness and financial sustainability