Calgary Faces Tough Choices: A Proposed 5.4% Property Tax Hike Looms for 2026

Calgary homeowners are bracing for another significant financial hit as the city proposes a substantial 5.4% residential property tax increase for 2026. This latest adjustment, part of Calgary's mid-cycle budget review, comes as the city grapples with a projected $113 million budget shortfall, igniting fresh concerns about affordability and the long-term financial health of its residents.

The proposed hike isn't an isolated event; it follows a hefty 7.8% increase for 2024 and another 4.4% slated for 2025.

Cumulatively, these adjustments paint a challenging picture for property owners, who face continuous upward pressure on their household budgets. City officials attribute the deficit to a confluence of factors, including persistent inflationary pressures, the mounting operational costs of new, vital infrastructure projects like the Green Line and burgeoning recreation centers, and the critical need for enhanced police resourcing to keep pace with the city's rapid growth.

The contentious proposal is set to spark robust debate among city council members this November.

Mayor Jyoti Gondek acknowledged the unenviable position, stating that 'these are difficult choices that are coming forward,' and emphasizing the ongoing efforts to identify efficiencies while simultaneously navigating the demands of a fast-growing urban centre. Her comments reflect the delicate balance the city aims to strike between providing essential services and managing taxpayer funds responsibly.

However, not all councillors share the same perspective.

Coun. Sonya Sharp has voiced strong reservations, questioning the city's spending priorities and the cumulative burden on homeowners. 'At the end of the day, it's not sustainable. It's not affordable for Calgary residents,' Sharp stated, highlighting the disparity between rising residential taxes and a proposed 4.2% decrease for the non-residential tax rate in 2026.

This contrast has fueled arguments about equitable taxation and the city's economic strategy.

The city manager's office also underscored the complex financial landscape, pointing to challenges such as provincial downloading of responsibilities and a growth in assessment values that simply isn't keeping pace with the escalating costs of delivering municipal services.

These systemic issues contribute to the persistent budget pressures, making the task of balancing the books an increasingly formidable one.

As Calgary continues to evolve, the proposed tax increase serves as a stark reminder of the difficult conversations ahead. The upcoming council debate will not only shape the city's financial trajectory for 2026 but also profoundly impact the daily lives and long-term financial planning of thousands of Calgary homeowners, who await the final decision with bated breath.