Downtown Calgary (Photo by Dilusha Gonagala/Pexels.com)
Calgary’s proposed 15 percent property tax hike next year would be the highest in decades, as the city’s administration seeks billions in additional spending to address aging infrastructure, population growth, and rising service costs.
The city’s proposed 2027–2030 budget, presented on Nov. 10, calls for further annual property tax revenue increases of 10 percent in 2028, 7.7 percent in 2029, and 6 percent in 2030. The increases would help fund an operating budget that is expected to reach $6 billion next year and almost $7.9 billion by 2030. The proposal also includes a capital program totalling approximately $20 billion.
Calgary’s proposed 15 percent increase in municipal property tax revenue from existing properties in 2027 would be substantially higher than the underlying annual increases documented in city budget records since 2008. Historical records show that municipal residential taxes increased by 13 percent in 2013 when provincial tax-room adjustments were included.
For a median single-family home valued at $688,000, municipal property taxes would increase by $442 in 2027, or 16.1 percent, bringing the annual bill to $3,189. By 2030, the bill would reach $4,059, an increase of $1,312, or roughly 47.8 percent higher than in 2026.
A typical residential property would also pay another $14.50 per month in water utility charges next year, on top of the $36.83 monthly property tax increase. Combined, the increases would cost homeowners another $51.33 per month, or nearly $616 annually.
City council approved the water utility increases on Oct. 27, with the new rates taking effect Jan. 1, 2027. The approved annual rate increases include 19.9 percent for drinking water, 15.2 percent for wastewater, and 5.8 percent for stormwater.
Operating and Capital Budgets
Property tax revenue, including levies, is projected to rise 52 percent over four years, from $2.55 billion in 2026 to $3.88 billion in 2030.
Operating revenue is projected to rise 54 percent over four years, from $5.12 billion in 2026 to $7.87 billion by 2030.
The proposed capital program includes major investments in water infrastructure, roads, transit, and public facilities. It would also rely more heavily on borrowing, including $2.9 billion in new tax-supported debt, with property tax revenue required to cover principal and interest payments.
The budget identifies $596.2 million in additional ongoing operating funding, $385.7 million in one-time operating funding, and approximately $13.1 billion in new capital investment over the budget cycle.
Infrastructure, the largest capital priority, would receive approximately $9.2 billion in new investment, while transportation, the second-largest, would receive $1.3 billion.
The proposed infrastructure investments include $2.29 billion for wastewater treatment capacity and upgrades, $1.14 billion for water mains, pumping and storage infrastructure, $824.3 million for water treatment plant renewal, $684.4 million for wastewater collection network improvements, and $455 million for stormwater system renewal.
The city plans to finance these projects through grants, reserve funds, developer contributions, and borrowing. The total proposed capital budget for 2027 through 2031 and later is $20.6 billion, comprising $7.5 billion in previously approved funding and $13.1 billion in new investment.
The city’s 10-year capital infrastructure plan also identifies approximately $54 billion in new infrastructure needs, with roughly $21 billion of those needs falling between 2027 and 2030.
Cited Reasons for Tax Increases
The budget documents say the tax increases are needed to address aging infrastructure and years of insufficient maintenance funding, along with population growth, and rising service costs.
The city says relatively low property tax increases over the past decade provided short-term affordability but limited funding for infrastructure maintenance and renewal. It says additional investments are needed to maintain reliable services and reduce the risk of disruptions to critical infrastructure.
Calgary’s population is expected to increase from 1.583 million this year to 1.609 million in 2027 and could reach 1.689 million by 2030. That represents an increase of approximately 106,000 residents over four years.
However, the proposed 15 percent property tax revenue increase in 2027 is considerably higher than the city’s projected 3.1 percent municipal cost inflation and 1.6 percent population growth.
The city identified $143 million in additional ongoing funding sources for 2027, including property tax growth from new developments, return on equity, franchise fees, investment income, and vacancy management initiatives.
The administration also identified $23 million in budget changes to non-priority areas to redirect funding toward the council’s strategic priorities.