Calgary homeowners are bracing for higher property tax bills in 2026, a financial pressure that persists despite a significant slowdown in the growth of residential property values. This counterintuitive situation stems primarily from a substantial increase in the provincial government's share of the property tax levy.
Provincial Tax Requisition Drives Overall Increase
According to City of Calgary Director of Assessment and Tax, Eddie Lee, the province's planned hike to its property tax requisition will be approximately 11.9 per cent. This increase will expand the provincial portion of the total property tax pie to 40 per cent, up from 37 per cent in 2025. Lee clarified that this provincial decision operates on a separate budgeting mechanism and does not directly impact the city's total revenue or its ability to fund public services.
"The amount of tax that the city will collect will remain the same," Lee stated. He explained that the province will inform Calgary of the final requisition amount in late February, and those numbers are fixed. On top of the provincial increase, the municipal property tax rate is also set to rise by 1.6 per cent as per the city's approved budget. The combined impact on individual tax bills will become clear after the provincial budget is released.
Property Assessment Growth Cools Dramatically
This year's tax pressure contrasts sharply with the recent trajectory of property values. The 2026 assessment cycle marks a dramatic cooling from the unprecedented surges seen in 2025. Last year, Calgary witnessed a 22 per cent increase in condominium values, following an 18 per cent rise the year before. The city's estimate for single-family detached homes jumped by 14 per cent in 2025, up from 10 per cent in 2023. Officials attributed these historic increases primarily to a surge in net migration in 2023.
For 2026, the landscape has changed. Lee noted that population growth has stabilized as housing supply begins to catch up with demand. The latest assessments, which reflect property values as of July 1, 2025 (or December 31 for homes with structural changes), show much more modest movements:
- The median value of a single-family home, which represents the largest housing segment, increased by only one per cent to $706,000.
- The assessed value of a residential condominium apartment actually declined by three per cent, falling from $357,000 to $349,000.
- Purpose-built rental properties, a small segment of about 2,500 residences, saw values rise by eight per cent.
Market Stabilization and Ongoing Adjustments
Lee could not precisely quantify the effects of decreased immigration and increased housing supply on assessments. However, he provided data showing the housing stock grew, with single-family homes increasing by two per cent and multi-family condominiums climbing by four per cent.
The city also completed ongoing adjustments from a major 2025 hailstorm that damaged swaths of north Calgary. Last year, assessors readjusted the values of approximately 51,000 homes across 16 communities affected by the storm, with many damaged properties seeing their assessed values decrease as a result.
The convergence of a cooling assessment market and rising tax rates underscores the complex factors determining a homeowner's annual tax bill. While property value growth has normalized, the financial obligation for Calgary residents is poised to climb in the coming year, driven by budgetary decisions at both the municipal and provincial levels.
