Property Tax Increases in Calgary: What Homeowners Need to Know

As a realtor® in Calgary, Alberta, with Real Broker, it is my duty to keep homeowners informed about the latest developments that may affect their properties and finances. Recently, there have been proposed property tax increases in Calgary that have garnered significant attention and concern. In this blog post, we will delve into what these proposed increases entail, why property tax rates are climbing, and how they may impact homeowners in Calgary.

Understanding the Proposed Property Tax Increases

The proposed adjustments to Calgary's four-year budget, released publicly on November 7th, have sparked discussions about the potential impact on homeowners. If all of the changes are accepted by the City Council, Calgary homeowners could face a significant property tax increase next year. Currently, the tax hike sits at nearly 3.4 percent, but with the proposed adjustments, it could rise as high as 7.8 percent.

The city administration has recommended additional spending for 2024 to meet the needs of Calgary's fast-growing population. One of the key proposals is to shift some of the tax burden from businesses to residential accounts to ensure businesses can remain competitive. This recommendation aims to address the disparity in tax payments, as currently, for every dollar of assessed property value, Calgary business property owners pay more than four times as much as residential property owners.

The Impact on Homeowners

If all the proposed measures are approved, homeowners in Calgary can expect an increase of approximately $16 per month on their property tax bill next year, for owners of a median priced house worth $610,000. While this increase may seem significant, the city assures residents that even with the proposed measures, Calgary's taxes would still be increasing below the rate of inflation plus population growth.

It is important to note that the proposed property tax increase is not finalized yet, as the City Council will debate the adjustments to the 2024 budget during the week of November 20. This provides an opportunity for homeowners to voice their concerns and for council members to evaluate the potential impact on residents.

Why are Property Taxes Rising in Calgary?

The rising property taxes in Calgary are driven by several factors. Firstly, the city's population has been growing rapidly over the past few years, with a 5.1 percent increase in the past two years alone. This growth necessitates increased spending on essential services such as transit, housing, and public safety. The proposed budget adjustments reflect the city's efforts to meet the demands of a growing population.

Secondly, the shift of some tax burden from businesses to residential accounts aims to create a more equitable distribution of tax payments. Calgary's current tax ratio is 52 percent from residential properties and 48 percent from non-residential accounts. The proposed recommendation suggests gradually shifting this ratio by one percentage point annually for the next three years, resulting in a higher tax increase for residential property owners and a decrease for non-residential accounts.

Lastly, inflationary pressures and the need to cover rising costs for essential services contribute to the overall increase in property taxes. The city administration has highlighted the importance of investing in transit, housing, and public safety, and the proposed adjustments reflect these priorities.

What Do the Property Tax Increases Mean for Homeowners in Calgary?

The proposed property tax increases in Calgary have raised concerns among homeowners. While the exact impact will vary depending on property values and individual circumstances, it is essential for homeowners to understand the potential implications.

• • Financial Burden: The property tax increase will translate into higher monthly payments for homeowners. An average residential homeowner can expect an increase of $16 per month, which amounts to approximately $192 for the year. This additional cost may impact household budgets and require adjustments in spending.
  • Affordability: The rising property tax rates may affect the overall affordability of homeownership in Calgary. As property values increase, property taxes also rise, placing a greater burden on homeowners. It is crucial for prospective buyers to consider these factors when assessing their ability to afford a home in the city.
  • Potential Impact on Housing Market: Higher property taxes have the potential to impact the housing market in Calgary. Buyers may factor in the increased tax burden when considering their purchasing power, which could influence demand and pricing dynamics. Homeowners planning to sell their properties should also be mindful of the potential impact on buyer interest.
  • Advocacy and Engagement: The proposed property tax increases highlight the importance of active engagement with local government. Homeowners have the opportunity to voice their concerns and provide feedback during the City Council's deliberations. It is crucial for residents to participate in discussions and ensure their interests are taken into account.
  • Long-Term Planning: Homeowners should consider the potential for future property tax increases when planning their long-term finances. It is prudent to factor in potential increases when budgeting for homeownership and evaluating the affordability of properties.

Conclusion

The proposed property tax increases in Calgary have sparked conversations and concerns among homeowners. As a realtor®, it is my duty to keep you informed about the latest developments and potential impacts on your property and finances. While the proposed tax increases are subject to City Council deliberations, it is essential for homeowners to stay engaged, voice their concerns, and participate in discussions to ensure their interests are represented. If you have any questions or need guidance regarding property taxes or the real estate market in Calgary, please don't hesitate to reach out. Together, we can navigate these changes and make informed decisions for your homeownership journey.

Looking to buy or sell your home this winter season? Looking to move to Calgary or just looking to get out of your rental? Check out our website to browse AllCalgaryListings. For more personalized guidance or to chat about your homeownership goals, feel free to reach out to us by filling out the contact form below, or visit our Contact Us page. You can also reach me, Ben Sweet, directly at +1 (403) 774-7447. Still not convinced? Check out our Rave Reviews and see what our past clients have to say. We look forward to talking with you!

If you like this article, check out our blog page to stay up to date on everything Calgary and everything Real Estate. You might also like these articles:

• House vs Condo vs Townhome vs Apartment: Which is the Best Investment in Calgary?
• How to Get a Mortgage in Calgary - October 2023; A Step-by-Step Guide
• The Impact of Staggering Population Growth on Calgary's Housing Market in 2023
• Calgary’s Housing Strategy; The Council’s New Strategy and its’ Implications For Calgarians

Psst.. Check out our website for our Free Mortgage Calculator Tool and our Free Home Valuation Tool. And check back often for more free tools and resources!