Understanding Property Taxes & Assessment
Property taxes can be confusing because several different calculations and decisions contribute to the final amount shown on a property tax notice.
Property assessment, tax rates, municipal budget needs, and provincial or other requisitions can all play a role.
This guide explains the basic steps in plain language and shows residents what to look for when reviewing property assessment and tax information.
1. Property Assessment
Property assessment is the process used to determine the assessed value of property for taxation purposes.
Assessment helps distribute the property tax burden among taxable properties in a municipality. It is not, by itself, the amount of property tax you will pay.
Important to know:
Your property assessment and your property tax bill are related, but they are not the same thing.
What to look for:
Check the assessed value shown on your assessment notice and review the property information used in the assessment.
2. How Property Is Assessed
In Alberta, different types of property may be assessed using different methods established under provincial legislation.
Many properties are assessed based on market value. Other types of property may be assessed using provincially regulated assessment standards or models.
For market value assessments, Alberta uses a common valuation date so properties are valued based on the same point in time.
What to look for:
Check the property details used in your assessment and whether the information accurately reflects your property.
3. How Property Tax Is Calculated
At its simplest, property tax is calculated by applying the applicable tax rate to the taxable assessed value of a property.
When a rate is shown as a mill rate:
Taxable Assessment × Mill Rate ÷ 1,000 = Property Tax
A property tax notice may include more than one tax rate or levy. For example, municipalities collect education property tax on behalf of Alberta's education system.
Important to know:
A higher assessment does not automatically mean your property taxes will increase by the same percentage. Tax rates, municipal budget needs, provincial requisitions, and changes in the assessment base can all affect the final amount.
What to look for:
Look at your taxable assessment, the individual tax rates or levies shown, and the amount calculated for each portion of your tax notice.
4. The Tax Rate
The tax rate is used to calculate the amount of property tax applied to taxable assessment.
Council sets municipal tax rates through the annual property tax bylaw after considering the approved budget and the amount of revenue needed from property taxation.
Different classes of property may have different tax rates.
Important to know:
A tax rate may also be called a mill rate. A mill rate of 1.0 means $1 of tax for every $1,000 of taxable assessment.
What to look for:
Compare the current tax rate with previous years and check which property class and tax rate apply to your property.
5. Municipal Property Tax
The municipal portion of property tax helps fund County services, operations, programs, and infrastructure.
This may include roads, protective services, agricultural services, planning, administration, recreation funding, and other municipal responsibilities.
Important to know:
Council approves the municipal budget and sets the municipal tax rates needed to raise property tax revenue.
What to look for:
Look at the municipal portion of your tax notice and review the County's approved budget and tax rate bylaw to better understand how municipal tax revenue is being used.
6. Education Property Tax
The Government of Alberta determines the amount of education property tax to be raised across the province.
Municipalities are responsible for collecting the education property tax from property owners and forwarding the required amount as directed under Alberta's education property tax system.
Important to know:
Municipal Council does not decide how much education property tax Alberta requires to be raised.
What to look for:
Look for the education property tax portion shown on your tax notice. Keep this amount separate from the municipal portion when comparing changes in your total tax bill.
7. Other Requisitions and Levies
A property tax notice may include amounts collected for other organizations, authorities, or purposes as required or authorized by legislation.
The County may be responsible for collecting these amounts through the property tax system.
Important to know:
Not every amount shown on your property tax notice is money the County keeps for general municipal operations.
What to look for:
Review each separate tax rate, requisition, or levy shown on your tax notice. Look at who the amount is being collected for and keep these amounts separate when comparing the municipal portion of your taxes.
8. Why Your Tax Bill May Change
Your property tax bill may change from one year to the next for several reasons.
Changes in your property assessment, municipal tax rates, the County's budget needs, provincial education property tax, other requisitions or levies, and changes in the overall assessment base may affect the final amount.
Important to know:
A change in your tax bill does not always come from one single decision or one single tax rate.
What to look for:
Compare your current and previous tax notices. Look separately at your assessed value, municipal tax rate, education property tax, and any other requisitions or levies shown.
9. Reviewing Your Assessment
Property owners should review their assessment information carefully.
Check that the property details used for assessment purposes are accurate. If you have questions about how your property was assessed, contact the assessor or the County for more information.
Important to know:
There are formal deadlines and procedures for filing an assessment complaint. Asking a question about your assessment does not automatically start the formal complaint process.
What to look for:
Review the assessed value, property classification, and property information shown on your assessment notice. Pay attention to the complaint deadline and the information provided about the assessment complaint process.
10. Assessment Complaints
If a property owner believes their assessment is unfair or incorrect, the first step should be to review the assessment information and speak with the assessor.
If the concern is not resolved, Alberta provides a formal assessment complaint process through the Assessment Review Board.
A complaint must follow the required process and be filed by the deadline shown on the assessment notice. Filing requirements and fees may apply.
Important to know:
An assessment complaint is about the assessment or matters that may legally be complained about. It is not a complaint about the amount of property tax owing or the tax rate set by Council.
What to look for:
Check the complaint deadline, filing instructions, required complaint form, and applicable fee. Review the County's current assessment complaint information and Alberta's official guidance before filing.