Calgary proposes 3.9% tax increase for single family homes, 3.6% hike overall

Budget-change proposal may mean property-tax spike Proposed budget changes at city hall would see almost all Calgary homeowners paying more in property taxes next year.

A growing population, inflationary pressures and increased spending are all factors driving up Calgary's budget and its tax rate, the city said.

At a briefing on Tuesday, city administration recommended an overall property tax increase of 3.6 per cent for 2025.

Calgary councillors are hearing proposed mid-cycle adjustments to the city's four-year budget cycle on Tuesday morning.

If approved, property taxes for a single family home will increase by 3.9 per cent next year compared to 2024. The rate for a condominium would rise by 10.5 per cent, while multi-residential and high-rise properties would jump 5.3 per cent.

The city is also upping monthly utility fees by 3.7 per cent for a typical single residential property.

All told, the average single-family home with a median price of $700,000 will pay about $161.52 more in 2025 – about $13.64 per month – due to combined property tax and utility cost increases.

The total proposed property tax increase for non-residential properties is 1.4 per cent.

"The recommended adjustments aim to strike the right balance between delivering reliable city services, maintaining quality infrastructure, and building a world-class city," David Duckworth, Calgary's chief administrative officer, said in a news release.

Leading up to Tuesday's public release of budget adjustments, administration had been prepared to recommend an overall property tax increase of 4.5 per cent for 2025, but officials said they found "a higher amount of investment income" to bring down the rate to what council had previously approved.

Calgary's operating budget for every day expenses will escalate by 11.4 per cent in 2025, much of which is due to increased investments in infrastructure, public safety and transit spending.

"Utilities are essential for Calgarians, and further infrastructure investments, including maintenance and enhanced inspections, are key to ensuring utility reliability now, and in the future," Duckworth said.

Acting city chief financial officer Les Tochor said Calgary's population has ballooned by more than 144,000 residents since the budget was first approved two years ago and it's having an immediate impact on infrastructure, especially waste and recycling, streets sidewalks and pathways.

Additional investments will be made to maintain and inspect infrastructure, including Calgary's water network and roads. Money will also be spent to cover a transit revenue shortfall and on housing and planning.

Councillors will debate the proposed budget adjustments later this month and it could change if currently unfunded projects are approved.