How Property Tax is Assessed in Calgary: A Simple Guide
Understanding property taxes can be confusing, but it’s an important part of homeownership in Calgary. Here’s a straightforward guide to help you understand how your property tax is assessed.
What is Property Tax?
Property tax is a fee property owners pay to help fund city services like road maintenance, garbage collection, parks, police, fire services, and schools.
How is Property Tax Calculated?
1. Your Property’s Assessed Value
Each year, the City of Calgary assesses your property’s market value as of July 1 of the previous year. This value reflects a mass evaluation process that determines a general value of how much your home could sell for under typical conditions as compared to others.
2. The Tax Rate
Calgary City Council sets the property tax rate each year. This rate is based on the city’s budget needs and how much money is required to provide services.
3. The Formula
Your property tax is calculated using this formula:
Assessed Property Value × Tax Rate = Property Tax
For example, if your home is assessed at $500,000 and the tax rate is 0.0075, your annual property tax would be:
$500,000 × 0.0075 = $3,750
Understanding the Tax Bill
Your tax bill is divided into two parts.
• Municipal Taxes: Fund local services provided by the City of Calgary.
• Provincial Taxes: Pay for education and other provincial needs.
Why Property Values and Taxes Change
• Market Conditions: If real estate prices increase or decrease, your property’s assessed value may change.
• Budget Changes: If the city or province needs more money for services, the tax rate could rise.
How to Check Your Assessment
Each January, the City sends property assessment notices. You can review your assessment and compare it with similar properties using the City’s online Assessment Search Tool. If you disagree with your assessment, you have the right to file a complaint with the Assessment Review Board.
Tips for Homeowners
• Keep your contact information updated with the City to ensure you receive your tax notices.
• Budget for your property tax payments, which are usually due in June.
• Consider signing up for the Tax Instalment Payment Plan (TIPP) to spread payments throughout the year.
Understanding how property taxes work helps homeowners’ budget better and ensures they’re informed about how their contributions support Calgary’s vibrant community.
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