Property taxes is something that first-time homebuyers can sometimes forget to budget for, and something that homeowners often grumble about. However, property taxes are a major source of income for cities and help keep major services running like transportation, water treatment, etc. It’s a reality of owning, so here’s what you should know about it.
Specific to the City of Calgary:
Each year City Council approves the budget needed to support City services. To get the amount of revenues required from property taxes, The City takes the overall expenditure and subtracts all other sources of revenue such as business taxes, licence fees, user fees and provincial grants. The balance is the amount to be raised through municipal property taxes.
How is property tax calculated?
*Source: City of Calgary
| Municipal tax rate = | Total revenue required by The City of Calgary from property tax ÷ Total assessment |
|---|---|
| Provincial tax rate = | Total revenue required by The Province of Alberta from property tax ÷ Total assessment |
| Property tax bill = |
Assessment x Municipal tax rate
+
Assessment x Provincial tax rate*
|
If you’re interested in seeing where your property tax dollars go specifically, there’s a great breakdown on the City of Calgary website. You can also find answers to FAQ regarding property taxes here.
