More than 440,000 property tax assessment notices have been mailed to Edmonton residents, marking the start of the 2026 tax season. As homeowners open these envelopes, reactions will vary widely. Some will see their property tax bill rise significantly more than the city council's budgeted increase of 6.9 per cent, while others may find their obligation has grown by less than that figure.
The Math Behind the Municipal Bill
The reason for this disparity lies in the complex mathematics of municipal taxation. While the average assessed value of a residential property in Edmonton increased by 5.7 per cent city-wide, this rise is not uniform across all neighbourhoods. The city's hot and cold real estate pockets create a patchwork of valuation changes.
For example, homeowners in the Sherwood neighbourhood are seeing an average assessment jump of 16 per cent, the highest increase in the city. Conversely, in Mattson, property values have dipped by an average of 1.3 per cent. This means the average Mattson homeowner will not face a tax increase anywhere near the 6.9 per cent benchmark.
Tax Levy Versus Tax Rate: Slicing the Municipal Pie
Understanding the difference between the tax levy and the tax rate is key to deciphering your notice. Edmonton City Council first sets the annual tax levy, which is the total amount of money required to fund city operations and services. For 2026, this total revenue requirement is forecast to grow by 6.9 per cent.
Anton Szabo, the City of Edmonton's Director of Policy and Data Quality, explains that council determines the size of the financial pie. "Assessments determine how the pie will be sliced," he states. "But assessors cannot make the pie itself larger or smaller." The professional assessment process then distributes the levy across all properties.
The process is methodical. City staff apply the 6.9 per cent increase to Edmonton's total property assessment base, which exceeds $220 billion. This calculation yields the precise sum that must be collected—no more, no less. This total levy is then divided by the total assessed value of all properties to establish the municipal tax rate.
A Professional and Audited Valuation Process
Szabo emphasizes the rigorous, accredited nature of the assessment system. "This is not just thumbs in the air, taking guesses at what we might be assessing properties for," he said during a media briefing on Tuesday, January 13, 2026. "They do have accreditation. They know what they are doing."
Provincial authorities audit the city's assessments, which are based on a property's estimated market value as of July 1 of the previous year. The system is designed to reflect value at that fixed date, not to predict future market fluctuations. City assessors review properties at year's end to account for any physical changes, such as renovations or demolitions, that occurred after the July 1 valuation date.
The final tax bill for each property owner is calculated by applying the city's tax rate to the individual assessed value of their home, apartment building, office tower, or industrial facility. Therefore, if a home's value increased by exactly the city-wide average of 5.7 per cent, the owner will see the benchmark 6.9 per cent tax hike. Those in areas like Sherwood, with values rising far above the average, will bear a larger share of the total levy. Homeowners in areas like Mattson will see a smaller increase.
In essence, as one might adapt a famous line, when it comes to property taxes, some Edmonton homeowners are more equal than others, based solely on the relative market performance of their neighbourhood.
