Property taxes might not be the most exciting part of homeownership, but understanding how they work can help you budget better and catch mistakes before they cost you money.
Property taxes fund the services that keep the city running every day. Think snow clearing, transit, police and fire, parks, recreation, and other things we all rely on. Every homeowner pays into the system, but most people are not totally sure how their bill is calculated or what to do when the numbers don’t look right.
Here is a simple breakdown of how property taxes work, what changed for 2026, key deadlines you need to remember, and when it makes sense to appeal your assessment.
Calgary Property Tax Rates for 2025
Residential properties
Provincial: 0.0023097
City: 0.0038706
Combined: 0.0061803 (roughly 0.62%)
Non residential properties
Provincial: 0.0038555
City: 0.0179731
Combined: 0.02182860 (roughly 2.18%)
Farmland
Provincial: 0.0023097
City: 0.0372838
Combined: 0.0395935 (roughly 3.96%)
What Changed for 2026
Assessment notices land in mailboxes every January and reflect market values as of the previous July. For 2026, a few trends stood out:
Average residential assessment rose 1%
Last year it increased 15 percentCombined residential tax rate is 0.61803%
Last year was 0.64861%Median single family home is assessed at $706,000
Last year it was $697,000Median condo assessment is $347,000
Last year it was $359,000
Keep in mind, a 1% change in assessment does not mean your bill changes 1%. Taxes shift based on the city’s budget and how assessments move across the entire pool of homes. If your property rose in line with the average, your share stays about the same. If you rose more or less, your slice of the pie shifts.
For 2026, the City approved a 1.6% tax rate increase, which works out to roughly $4.50 per month for the typical home. Final numbers get settled after the provincial budget drops in March, so online calculators may be slightly off. Actual tax bills are mailed at the end of May.
Key Dates to Remember
January: Assessment notices mailed
March: Deadline to file assessment appeals
May: Tax bills mailed
June 30: Payment deadline
July 1: First 7% late penalty
October 1: Second 7% late penalty
January 1 the following year: 1% monthly penalty on outstanding balances
How Your Tax Bill Gets Calculated
Three things drive your property tax bill:
Your assessed value: The City estimates market value based on what your home would likely sell for on July 1 of the previous year. Assessments consider living area, lot size, age, condition, renovations, garage, location influences, and comparable sales.
The tax rate: The City sets the municipal portion each spring. The Province sets the education portion separately. For 2025 the combined residential rate was 0.61803%.
The math: (Assessed value x City rate) + (Assessed value x Provincial rate)
Example for a $697,000 home in 2025:
City portion: $2,698
Provincial portion: $1,610
Total: $4,308
Understanding Your Assessment Notice
When your assessment shows up in January, check it. You have until March to appeal. Verify things like square footage, lot size, year built, condition, and any upgrades. Mistakes here can cost you real money.
The City’s online platform lets you compare your home to similar properties and spot odd valuations. You just need the roll number from your notice.
Why Assessments Change
Values shift when:
Markets move
Nearby sales change
New development happens
You renovate
Your home deteriorates
Neighbourhood demand changes
Paying Property Taxes
Bills arrive in May and cover the full year. You can pay:
Annually: Pay the full amount in person, by mail or online.
Monthly: Through TIPP, the City’s monthly payment plan which spreads your taxes across the year with no penalties and automatic renewal. If taxes are already included in your mortgage payment, you cannot join TIPP because the lender is already doing the same thing.
Some mortgage lenders will collect property taxes for you by adding 1/12 of your estimated tax bill to your monthly mortgage payment. If their estimate is off, you’ll either receive a refund or be billed for the difference when taxes are due. Some lenders require this setup, while others let you opt out and pay the City directly. If your taxes are already included in your mortgage, you can’t join TIPP because both options do the same thing: spread your annual bill into monthly payments.
What Happens If You Pay Late
Penalties add up quickly:
July 1: 7%o n unpaid balance
October 1: Another 7%
After December 31: 1% per month
The City treats tax as due whether you received the bill or not. If you do not see it by early June, call 311. If your lender forgets to pay, penalties still land on you, although lenders usually cover them.
If You Cannot Pay
Call the City rather than ignoring it. Unpaid taxes can lead to liens, collections, or even a tax sale. The Property Tax Assistance Program offers relief for qualified homeowners facing hardship.
Appealing Your Assessment
You can appeal if:
Comparable homes are assessed lower
Data in your assessment is wrong
Damage or defects are not reflected in the value
Market evidence indicates overvaluation
You cannot appeal because taxes feel too high or because you do not like how the City spends money.
To appeal, you will need evidence like comparable sales from last July, similar assessments from the City’s online tool, property condition photos, or contractor estimates for major issues. The Assessment Review Board can lower, maintain, or occasionally raise your assessment. Decisions apply only for the current year.
What Property Taxes Pay For
Property tax dollars fund services you use every day. When you pay your annual bill, your money goes toward:
Roughly 63% covers City services including police, fire, transit, roads, parks, recreation and waste
Roughly 37% covers provincial education costs
Water and waste utilities are billed separately.
Common Questions
Why did my taxes increase if the City approved only a small increase?
Your bill depends on both the tax rate and your assessment. If your home climbed faster than the average, your bill rises more than the headline number.Can I pay through my mortgage?
Yes. Many lenders do this. If they do, you cannot join TIPP.Can I appeal the tax rate?
No. You can only appeal the assessed value.Will my taxes always go up?
It depends on market values and budgets. In strong markets assessments climb. In weaker ones they decline. Rates change based on City and provincial budget decisions.
Conclusion
Property taxes might not be the most exciting part of owning a home, but understanding how they work makes life easier. It helps you budget, catch mistakes, and know when it’s worth filing an appeal. If something looks off in January, don’t wait until summer to figure it out. Once the deadline passes, you’re stuck with that number for the year.
If you want to dive deeper into how property taxes work or what your assessment means, reach out any time. I’m always happy to discuss what this means for you!
