What is property tax, and how is it calculated?

Property tax in Calgary is the primary source of revenue for the city and the province of Alberta to fund critical public services. This annual tax is calculated based on the assessed value of your property and the established municipal and provincial tax rates.

For 2025, a typical homeowner in Calgary with an assessed value of $697,000 pays approximately $4,310 per year in property taxes.

Tax structure

Property tax consists of two main components:

  • Municipal portion — funds city services.
  • Provincial portion — funds education.

In 2025, the municipal portion will be approximately 63% and the provincial portion will be 37% of the total tax bill.

Interesting fact: Calgary collects over $1 billion in provincial property taxes annually — the highest amount per capita of any municipality in Alberta.

Legal regulation

The property tax system in Alberta is regulated by:

  • Municipal Government Act
  • Calgary City Bylaws

This ensures a fair and transparent distribution of the tax burden among all property owners based on the market value of their property.

Property assessment process

Assessment principles

The annual assessment is conducted by the city assessment department based on:

  • Market conditions as of July 1 of the previous year
  • Physical characteristics as of December 31 of the previous year

For example, the assessment for 2025 is based on market conditions as of July 1, 2024.

City Assessor Eddie Lee explains that the assessment takes into account:

  • the location of the property,
  • the size of the house,
  • the presence of parks nearby,
  • proximity to Deerfoot Trail,
  • other characteristics.

Sales of similar properties are also analyzed to establish a fair market value.

Mass appraisal methods

The city uses a mass appraisal method, grouping similar properties together for efficiency. This differs from an individual appraisal, which is conducted by a private appraiser for mortgage purposes.

  • Mass appraisal allows the city to appraise over 550,000 residential properties in a cost-effective manner.
  • Appraised value is not always the same as current market value.
  • It shows the approximate value on the open market in the previous year, but does not guarantee the current price today.

Tax rate structure in 2025

Current rates by property class

According to Property Tax Bylaw 13M2025:

Assessment class Municipal rate Provincial rate Total rate
Residential 0.0038706 0.0023097 0.0061803
Non-residential 0.0179731 0.0038555 0.0218286
Agricultural land 0.0372838 0.0023097 0.0395935

Mil rate concept

In western Canada, including Alberta, tax rates are expressed as mill rates — a tax on every $1,000 of assessed value.

The formula used for calculation is: Mill rate ÷ 1,000.

For example, a total mill rate of 6.1803 means $6.18 in tax for every $1,000 of assessed value.

Example from Reddit If your home is valued at $500,000 and the mill rate is 6.1803, then your annual tax is: $500,000 × 0.0061803 = $3,090.15

Ratio of commercial and residential rates

In 2025, the ratio of commercial to residential tax rates in Calgary is 2.78:1.

This means that commercial properties pay 2.78 times more in taxes than residential properties of the same value.

Reason: Calgary joined the cities with above-average ratios due to:

  • problems with office buildings in the downtown area
  • a decrease in the non-residential tax base.

Detailed calculation of property tax

Basic formula

Basic formula for calculating property tax:

Property taxes in Calgary 2025: assessment growth, rates, and payment

In 2025, the assessed value of real estate in Calgary increased by an average of 14%, but this does not mean an automatic 14% increase in taxes. The city adjusts tax rates annually to balance revenue needs.

Tax increases in 2025

Municipal portion

  • Increase: +3.4% in 2025
  • For a typical home with an assessed value of $697,000:
  • + $134 per year
  • or + $11 per month

Interesting: Calgary had the lowest municipal tax increase among all major Canadian cities in 2025.

Provincial portion

  • Growth: +17.5% in 2025
  • For a typical home:
  • + $218 per year
  • or + $18 per month
  • The total provincial tax burden increased by $154 million across Calgary.

Overall impact

A typical homeowner in Calgary in 2025 will see:

  • + $350 per year
  • or + $29 per month
  • Total increase: 8.9% for residential properties.

TIPP payment system

What is TIPP

Tax Installment Payment Plan (TIPP) is the most popular method of paying property taxes in Calgary. TIPP allows you to split your annual tax bill into 12 equal monthly payments, instead of paying a large amount in June.

Benefits of TIPP

  • Smooth cash flow management — monthly payments instead of a large one-time payment.
  • Avoid late fees — automatic payments eliminate the risk of missing the June 30 deadline.
  • Stress-free payments — automatic withdrawal from your bank account.
  • No fees — participation in the program is free.

How to join TIPP

  1. Make sure all your taxes are paid.
  2. Complete the online application at calgary.ca/TIPP.
  3. Provide your banking information.
  4. Start automatic monthly payments.

How payments are calculated: Monthly amount = Annual tax bill ÷ 12 Adjustments are made in June based on the new annual assessment (May).

Assessment appeal process

When to appeal

Property owners have the right to appeal their assessment if they believe it is too high. In January, the city sends out assessment notices, after which there are 60 days to discuss the assessment with the city assessor.

First step — talk to the assessor

Before filing a formal complaint, it is recommended that you:

  1. Contact the Assessment and Taxation Department.
  2. Discuss your situation with the city assessor.
  3. Provide documents that support your claim that the assessment is incorrect.

In some cases, the assessor may agree to make changes without a hearing.

Formal complaint to the ARB

If the problem cannot be resolved with the assessor, you can file a formal complaint with the Calgary Assessment Review Board (ARB). A valid complaint must be filed by the final complaint date indicated on your assessment notice, with the correct filing fee.

Complaint requirements

A valid complaint must include:

  • The reasons why you believe the assessment notice is incorrect, with sufficient detail for the ARB to understand.
  • Your contact information, including a phone number where you can be reached during business hours.
  • Your roll number and property address.
  • Payment of the required filing fee.

ARB Hearing Process

The ARB conducts hearings with a panel of 3 members who hear evidence and arguments from:

  • The taxpayer;
  • The Assessment & Tax Business Unit.

Hearings are open to the public and may be conducted:

  • in person,
  • via video conference,
  • by telephone,
  • through written submissions.

Decision: Assessments may be reduced, increased, or remain unchanged.

Comparison with other cities

National comparison

Calgary has relatively low property taxes compared to other large Canadian cities. Calgary's property tax rates are third lowest in Alberta among municipalities with a population of over 10,000.

Regional comparison in Alberta

City Total tax rate
Chestermere 0.538075%
Airdrie 0.652619%
Calgary 0.61803%
Brooks 1.108080%
Lacombe 1.115330%

Use of tax revenues

Municipal services

The municipal portion of property taxes funds a wide range of services:

  • Fire protection and public safety
  • Police services
  • Road maintenance and snow removal
  • Parks and green spaces
  • Public transportation
  • Garbage collection and recycling

Provincial services

The provincial portion of taxes goes directly to the Province of Alberta to fund:

  • The education system (elementary and secondary schools).
  • Provincial programs.

Note: More than one-third of your tax dollars go directly to the province, making the provincial portion a significant component of your total bill.

Practical tips for property owners

Budget planning

  • Use the online city property tax calculator to estimate future bills.
  • This will help with financial planning and allow you to understand the impact of changes in assessment on your overall taxes.

Monitoring your assessment

  • Review your assessment notice annually.
  • Look for errors: incorrect square footage, number of bedrooms, or improvements.
  • Errors can lead to overassessment and higher taxes.

Understanding deadlines

Key dates for property owners in Calgary:

  • January — Property assessment notices are mailed.
  • January-March — Customer review period (opportunity to appeal your assessment).
  • March — Tax rates are finalized.
  • May — property tax bills are sent out.
  • June 30 — tax payment deadline.

Avoiding penalties

Late payment of taxes results in significant penalties:

  • 7% penalty in July for late payments.
  • An additional 7% penalty in October.

Tip: The TIPP program is the best way to avoid penalties through automatic monthly payments.

Conclusion

Property tax in Calgary is a complex system that balances the city and province's needs for funding public services and fair distribution of the tax burden.

  • Understanding the assessment process
  • Knowing the tax rate structure
  • Using available payment options

This allows homeowners to effectively manage their expenses. With taxes set to increase in 2025, it is especially important to consider the TIPP program to reduce the burden. Homeowners should also actively monitor their assessments and exercise their right to appeal if they believe their property has been overvalued.