Property Taxes in Calgary Suburbs: 4 Cities With Low Tax Rates

Places Near Calgary with Low Property Taxes

Property taxes in Calgary and its suburbs are based on a property's assessed value, and taxes collected contribute to community development and public service projects. While Calgary's property tax rates have seen increases, they still rank among the lowest of urban Alberta municipalities. There's much more to explore on property trends and tools to aid in financial planning; for homebuyers considering moving to Calgary or its surrounding communities, such an exploration can form a baseline and guide in decision-making. Read on for further insights.

What Are Property Taxes Used For?

Ever wondered where your money goes when you pay property tax in Calgary? It's more than just a hefty bill you pay each year; it's a contribution to the community you call home.

Fundamentally, your property taxes fund essential services that keep Calgary safe and functional, such as police and fire departments. So, when you see officers patrolling your neighbourhood or fire trucks rushing to an emergency, you're seeing your tax dollars at work.

Not just safety, your property taxes also ensure the city's roads are well-maintained and the parks remain green and vibrant. Whether it's the pothole being filled on your street or the new swing set in your local park, your contributions help make it possible.

These investments not only make Calgary a better place to live but also boost its overall economic health.

Calgary tax dollars also go to the following: 

  • Public infrastructure: Projects like upgrading public facilities to maintaining bridges and roads aren’t possible without public contribution.
  • Education: Funding for Calgary’s schools and educational programs that give youths the tools they need to succeed. 
  • Community development and social services: This could range from affordable housing projects to programs for seniors, all aimed at improving the quality of life for everyone in the city.

In essence, your Calgary property taxes play a critical role in maintaining and improving the city's overall quality of life. So next time you pay your property tax bill, remember you're investing in your community.

Calgary Property Tax Rate & City Profile

Now that you understand how your property taxes contribute to the community, let's take a closer look at the city's property tax rates and how Calgary's city profile plays a role in them.

Calgary's property tax rates have risen significantly over the years. For fiscal year 2024, the hike is attributed, at least in part, to a rise in the city's share of the provincial property tax requisition. Both residential and commercial property owners feel the pinch, and the cost of living in Calgary has increased. 

Despite this rise, Calgary's property tax rates remain the third lowest among urban municipalities in Alberta. However, the tax burden's distribution between residential and non-residential properties is a hot topic, with serious implications for the community and economy in Calgary. The average single-family home tax in Calgary is also projected to rise. This rise reflects Calgary's growing population—which now sits at over a million. 

Real estate prices also play a role in the city's property taxes, and the city’s rising prices impact property tax assessments. As a property owner, this increase is an important financial planning consideration. Understanding how these factors interact can help you navigate Calgary's property tax landscape more efficiently.

Canmore Property Tax Rate & City Profile

Canmore Has a Low Property Tax Rate

Shifting our focus to Canmore, you'll find that this city, nestled along the Bow River and home to over 15,000 residents, has quite a unique property tax profile. The population has surged in past years, leading to increased real estate prices. Now, the benchmark price of a home in Canmore is around $1 million.

Interestingly, apartments are the most commonly sold property type in Canmore, followed by townhouses, detached houses, and semi-detached houses. This resort town is the only one in Alberta with investment recreational properties and is one of the most expensive markets to buy a home.

However, despite the high real estate prices, Canmore is among Alberta’s cities with the lowest property taxes—and the lowest in Alberta for urban municipalities with over 10,000 population. The property tax calculation is based on the assessed value of your home, which is done annually following Alberta guidelines.

This tax is based on your property's assessed value and funds city services and education. It's made up of municipal tax and education tax components, with rates varying by property type.

Airdrie Property Tax Rate & City Profile

Airdrie Has a Low Property Tax Rate

Owners of homes in Airdrie, situated just 30 minutes north of Calgary, will want to understand the city's property tax rates and their impact. Airdrie's property tax is based on your property's assessed value and funds essential city services like police and public transit.The city tax rate places it amongst the fifth lowest for urban municipalities in Alberta with a population over 10,000.

The value of your property is determined using one of three approaches: sales comparison, cost, or income. Most properties are valued using the sales comparison approach, while the cost approach is typically used for new properties and the income approach for properties that generate income.

Your property tax is then calculated by multiplying your property's assessed value by Airdrie's final tax rate. An online property tax calculator provides an approximate result, but for official information, you should refer to your tax bill or contact the relevant authorities.

Living in Airdrie comes with its perks, evidenced by its status as one of Calgary’s best suburbs. The city has seen a population increase over the past few years. In turn, this increases the prices of real estate. The benchmark price of a house in Airdrie is around $500,000, reflecting the city's growing appeal.

Chestermere Property Tax Rate & City Profile

Chestermere Has a Low Property Tax Rate

Just east of Calgary, you'll find Chestermere, a city with over 20,000 residents and a property tax structure attractive to homeowners. This vibrant city is a mere 30 minutes from Calgary and has seen a population increase over the past few years. This growth has notably impacted the real estate market, with prices increasing by over 5 percent. The median price of homes for sale in Chestermere typically falls in the high $700s.

Property taxes in Chestermere are the second lowest in Alberta for urban municipalities with over 10,000 population. These taxes are based on assessed property value and fund city services and education. The tax consists of a municipal and education tax, with rates varying by property type.

Chestermere employs several property valuation approaches. 

  • The sales comparison approach values properties by comparing sales of similar properties. 
  • The cost approach values new properties based on the cost of rebuilding.
  • The income approach values income-generating properties based on income. 

The final property tax is calculated using the assessed value and the final tax rate. Chestermere's attractive property tax rates and thriving community make it a desirable location for homeowners seeking a balance between urban and suburban living.

Okotoks Property Tax Rate & City Profile

Okotoks Has a Low Property Tax Rate

Nestled 40 minutes south of Calgary, you'll find Okotoks, a city with around 30,000 residents and a property tax structure that has made it one of the more affordable urban municipalities in Alberta. With a boost in the population and real estate market, homes in Okotoks are usually priced from $200,000 to around $1.4 million.

Property tax in Okotoks is calculated based on the assessed value of your property. The rates are the sixth lowest in Alberta for urban municipalities with over 10,000 population, making it a financially attractive place to live. The funds generated from property tax are used for vital city services like the police, fire department, and education.

The property tax consists of two main parts: the municipal tax and the education tax. Rates vary based on the type of property, whether it's residential, multi-residential, commercial, industrial, or farmland. 

Property assessment is done based on a sales comparison, though other methods are also used.It's important to note that the calculated rates are general information only, and for official information, you should refer to your property tax bill or the relevant taxation authority.

Make the Most of Your Property Investment

In a nutshell, property tax hikes in Calgary and surrounding cities are a tough pill to swallow. They fund essential services but can strain your budget and increase your cost of living in Alberta. Perhaps more importantly, however, these cities still have some of the lowest property tax rates in the province, so they remain highly attractive in the realm of Alberta real estate.

It's crucial to stay informed and involved in local government decisions to better understand and manage these changes.Remember, these taxes also contribute to your city's growth and amenities. Weighing the costs and benefits can help you navigate these increases and make the most of your property investment.

Are you ready to move to Calgary? Call The Justin Havre Real Estate Team with eXp Realty at (403) 217-0003 to talk with a local real estate agent who can help you discover your dream Calgary home.

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