Calgary Businesses Brace for Upcoming Property Tax Increase
Calgary businesses are preparing for a significant rise in property taxes following the recently announced provincial budget. This budget includes an education property tax requisition increase projected to raise $3.6 billion across Alberta by 2026, with Calgary’s share set at $1.2 billion, marking a $200 million increase from last year.
Impact on Local Businesses
The anticipated rise in property taxes will cost Calgary’s median non-residential property owners an additional $1,816 this year. Coupled with Calgary city council’s 1.6% property tax increase, local businesses can expect an overall increase of nearly $3,000 in their property tax bills by 2026.
Arlen Smith, operating partner at Palomino Smokehouse in downtown Calgary, voiced his concerns about the financial strain. “It’s terrifying with the cost of everything else right now,” he stated. Despite facing annual property tax increases, Smith aims to avoid raising prices to retain customers.
Political Reactions
The property tax hike has sparked criticism from Alberta’s opposition, particularly NDP leader Naheed Nenshi. He claims that the budget effectively increases costs for residents and businesses alike, blaming the provincial government for mismanaging resources amidst a projected $9.4 billion deficit.
Nenshi pointed out that the education property tax in Calgary has surged by 58.6% across the last four budgets. In comparison, Edmonton’s education property tax requisition for 2026 stands at $639 million, showcasing the disparity in tax burden between the two cities.
Comparative Statistics
| City | Education Property Tax (2026) | Additional Tax per $100,000 Value |
|---|---|---|
| Calgary | $1.2 billion | Not specified |
| Edmonton | $639 million | $11 + $164 for City Tax |
Government’s Justification
Premier Danielle Smith defended the education property tax increase, stating it is necessary to cover growth-related expenses in Calgary’s education system. Smith emphasized that without this funding, taxpayers would face an unaffordable burden in supporting educational infrastructure.
Support for Small Businesses
The Canadian Federation of Independent Business (CFIB) has expressed that the budget increases further economic pressures on local businesses. CFIB is advocating for the introduction of a new property subclass for small businesses to mitigate these financial strains.
Calgary city council is expected to finalize property tax rates in the spring, with property tax bills scheduled to be mailed out in May.
