Alberta tabled Budget 2023 on February 28, 2023. For homeowners, one line matters directly: the provincial education property tax is frozen at about $2.5 billion for 2023/24, the same amount as the year before.
The details
- Because assessments across the province grew, a frozen total means lower provincial rates. They return to the 2021/22 levels.
- The residential and farmland rate is $2.56 per $1,000 of equalized assessment. The non-residential rate is $3.76 per $1,000.
- Calgary taxpayers will contribute $786.2 million in education property tax in 2023.
- The tax funds about 28% of the cost of operating K-12 education, such as teachers’ salaries and classroom resources.
What it means for your tax bill
The education portion appears on the same bill as the City’s municipal tax. Your share still depends on how your assessment changed compared with others in Calgary. Single homes rose more than average this year, so many detached owners may still see a higher education amount even with the freeze.
The City will set the final 2023 tax rates in the spring, and bills are mailed in May.
How the education tax is calculated
Every municipality collects a share of the provincial education property tax in proportion to its total taxable assessment. The assessments are equalized across Alberta so that owners of similar properties pay similar amounts, wherever they live. This year’s equalized base reflects 2021 property values. Each municipality then sets a local education tax rate, and that local rate is what appears on your bill.
Education property tax rates per $1,000 of equalized assessment, 2023
Where the money goes
All education property taxes are pooled by Alberta Education through the Alberta School Foundation Fund and shared among public and separate school boards on an equal per-student basis. The Province says the tax supports K-12 education, including teachers’ salaries, textbooks and classroom resources, and is not used for government operations, school capital costs or teachers’ pensions. In 2023, Edmonton taxpayers will contribute $497.2 million, compared with $786.2 million from Calgary.
In communities with separate school jurisdictions, property owners who are of the Roman Catholic faith can declare it, so that their education tax is directed to the separate school system.
Why your bill can still change
The fact sheet notes that owners may see a change in their education tax if their assessment changes more or less than the average change in their municipality. In Calgary, the median single residential assessment rose to $555,000 from $485,000 this year, while the median condo rose much less. That means a frozen provincial total does not guarantee a frozen bill for every home.
What to do now
- Homeowners: check your 2023 assessment notice before the review period ends; it is the base for both the municipal and education portions.
- Buyers: when you compare homes, ask for the latest tax bill and expect the 2023 figure to differ.
- Seniors: questions about the Seniors Property Tax Deferral program go to the Alberta Supports Contact Centre at 1-877-644-9992.
What a lower rate means in practice
The tax is a rate multiplied by the equalized value. When values across Alberta rise and the total stays at about $2.5 billion, the rate needed to collect that total falls. That is why the rates return to the 2021/22 levels. For an owner whose home rose in value about as much as the provincial average, the education amount should stay roughly the same. For an owner whose home rose faster than average, it can go up; for one whose home rose less, it can go down.
For condo owners in Calgary, the picture is often better than for detached owners this year, because condo assessments rose less. The final local rates will be set by City Council in the spring, after which you can calculate your own bill with the City’s online tax estimator.
