Council hikes transit fares, cancels tax shift as it seeks savings in 2026 budget

Council is considering dozens of amendments as it sets spending priorities for 2026.

Calgary councillors narrowly approved transit fare increases for 2026 but defeated a pitch to get rid of the free fare zone downtown as it makes its way through dozens of proposed budget amendments for next year.

Council also approved cancelling the planned tax shift from businesses to homes and will redirect $50 million of investment income from reserves to cover operating costs as it seeks to lower the property tax increase for 2026.

Starting in January, a single-ride adult ticket will increase to $4, while an adult monthly pass will jump to $126.

Coming into budget adjustment discussions, single-family residential properties would have seen a 5.8 per cent tax increase (3.6 per cent combined for non-residential and residential).

With changes early Monday afternoon, the projected property tax increase now sits at around 1.2 per cent for next year, with more amendments to be considered.

“We could go all the way to zero per cent. But what it means is not funding the needed safety improvements that Calgarians have told us are important right now,” said Mayor Jeromy Farkas.

Other possible amendments that were defeated include eliminating free transit for youths and cancelling a planned $40-million boost to the downtown conversion incentive program.

By the Monday dinner break, budget discussions—which were initially scheduled to wrap up last week—had only finished five of the 35 expected amendments.

More spending asks will be coming, including a $9-million proposed pilot project to have more security at some transit stations during rush hour.

“We’ve identified, with administration, some very key stations where there are elevated concerns, where there are some safety issues, etc. So, we would target during rush hour, 4 p.m. until 6 or 7 p.m., putting additional security members,” said Ward 6 Coun. John Pantazopoulos.

Council was set to continue debate until 9:30 p.m. Monday and will likely make a final budget decision on Tuesday.