Municipal fiscal gap report
The Municipal Fiscal Gap 2026 Update explains what’s causing the funding gap and how big the challenge is.
The 2026 update shows that downloading from other levels of government have added $1.05 billion in costs to The City’s finances between 2016 and 2026.
The municipal fiscal gap has widened as expenditures driven by growing responsibilities continue to outpace constrained revenue growth. This includes higher costs due to inflation and population growth along with additional City responsibilities that haven’t come with funding.
Higher provincial property tax requisitions are also reducing The City’s financial flexibility and creating a disproportionate tax burden for Calgarians.
What is the municipal fiscal gap?
The municipal fiscal gap is the difference between the cost of delivering services Calgarians rely on, such as transit and infrastructure, and the funding The City receives from other orders of government to help pay for them.
We continue to work on solutions with a focus on:
| Reducing reliance on property taxes. | ||
| Finding fair and sustainable ways to fund City services as Calgary grows. | ||
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This report is the first step. It reflects the findings from the Financial Task Force. Ongoing discussions with Council will help shape next steps. Any future actions would need Council approval and possible legislative changes.
Previous reports
View previous year's reports below:
How this report was created
Between 2015 and 2019, lower downtown non‑residential property values shifted the tax burden to residential properties. In response, Council created a Financial Task Force. The task force delivered 35 Council‑approved recommendations to address the issue.
One recommendation was to create the Municipal Fiscal Gap Report, which began in 2023. For more detail on the findings and key focus areas, read the full report.