Calgarians Could Face 15% Property Tax Increase in 2027 Under Preliminary Budget Plan

CALGARY: Calgarians could see a significant increase in their municipal property taxes next year under a preliminary budget scenario released by Calgary city council.

The proposed figures for the 2027 to 2030 budget cycle show a potential 15 per cent increase in municipal property taxes in 2027 for a typical residential property assessed at the median value of $706,000.

The preliminary figures are not final. City council is expected to debate and revise the numbers during formal budget deliberations later this fall. The City of Calgary says the proposed 2027 to 2030 budget will be released on November 10, followed by public submissions and council deliberations beginning November 23.

If the preliminary tax increase were adopted alongside projected utility fee changes, a typical homeowner could face an additional cost of about $52 per month. That figure could rise to approximately $56 per month the following year.

City officials have pointed to Calgary’s rapid population growth, inflation and aging infrastructure as major factors behind the additional revenue requirements.

Mayor Jeromy Farkas said the city needs to address infrastructure and service pressures rather than allowing problems to grow more expensive in the future.

However, Farkas stressed that the 15 per cent figure should not be viewed as a final tax decision.

The mayor noted that council went into the previous budget process with a proposed property tax increase of about six per cent before councillors ultimately reduced it to 1.2 per cent.

The current budget process is also expected to involve difficult choices over which services and projects should receive funding.

Calgary’s budget planning documents show that council is currently gathering funding requests from city departments and determining which priorities can be accommodated within the available revenue. The City says the next four year budget is being developed around areas including public safety, infrastructure, transit and community services.

Public safety is expected to be one of the major areas of discussion.

The Calgary Police Service has requested substantial increases to its capital and operating budgets, with part of the funding intended to support the hiring of more than 300 additional officers by 2030.

Farkas said council will have to distinguish between essential services and projects that can be postponed.

The preliminary budget document also outlines different potential outcomes depending on the level of taxation.

According to the document, keeping the increase below four per cent could result in reduced service levels. An increase of about 4.2 per cent could maintain existing service levels but would defer pressure on areas such as critical infrastructure, emergency response and transit expansion.

A much larger increase, around 20 per cent, would provide greater funding for improvements to city services, according to the preliminary analysis.

Coun. Kim Tyers said she does not expect a 15 per cent property tax increase to receive support from Calgarians. She said council will look for ways to reduce the proposed increase while still addressing the city’s most pressing needs.

The release of the preliminary figures follows a decision by council to make previously confidential budget information public. The move came after questions were raised about the circulation of confidential budget documents during the early stages of the budget process.

Coun. John Pantazopoulos supported releasing the information, saying residents should have an opportunity to understand the choices facing council before final decisions are made.

The proposed tax increase also needs to be considered separately from the provincial portion of property taxes. The City of Calgary collects property taxes on behalf of the Alberta government, with roughly 42 per cent of a residential property tax bill going toward the provincial portion and about 58 per cent funding municipal services.

For 2026, the City says the municipal portion for a typical single residential property increased by about 1.8 per cent, while the provincial portion increased by 21 per cent.

The 2027 figures will depend on the final budget approved by council, property assessments and the provincial tax requisition.

Calgary’s formal budget process will continue through the fall, with the proposed four year budget scheduled for public release in November. Council is expected to make final decisions later in the month.

Until those deliberations are completed, the 15 per cent figure remains a preliminary scenario rather than a confirmed property tax increase for Calgary homeowners.

Courtesy: CBC