Alberta Budget 2025 raises education property tax: Calgary to pay $1,037 million

Alberta’s Budget 2025, tabled on February 27, 2025, raises the provincial education property tax after the rates were frozen in 2024-25. The province expects the total requisition to rise from $2.7 billion to $3.1 billion.

Change in education property tax requisition, 2025 vs 2024, %

The rates

• Residential and farmland: $2.72 per $1,000 of equalized assessment, up from $2.56.
• Non-residential: $4.00 per $1,000, up from $3.76.
• The share of education operating costs funded by the tax rises to 31.6%.

Calgary and the region

• Calgary: $1,037 million, up 18% from $881.5 million. The residential part rises 19% and the non-residential part 13%.
• Airdrie: up 24%.
• Cochrane: up 24%.
• Okotoks: up 23%.
• Chestermere: up 29%.

What it means for owners

The education tax is a separate line on the municipal tax bill. Higher provincial rates plus higher 2025 assessments mean most owners will see a larger education portion this year. Each municipality sets its final rates in spring.

Compared with last year

In 2024-25, the province froze the rates at $2.56 per $1,000 for residential and farmland property and $3.76 for non-residential property. For 2025-26 they rise to $2.72 and $4.00. For every $100,000 of equalized residential assessment, that means $272 instead of $256, or $16 more, before any change in property values. The share of education operating costs funded by the tax rises to 31.6%, after historic lows of about 28% in 2023-24 and 29.5% in 2024-25.

Calgary education tax requisition, $ million

Calgary’s share

Calgary taxpayers will contribute $1,037 million in 2025, compared with $575 million for Edmonton. The province’s comparison report shows Calgary’s residential requisition rising from $662.6 million to $790.7 million and its non-residential requisition from $219.0 million to $246.6 million. Each municipality pays in proportion to its total taxable assessment, equalized across the province, so a city whose values rose faster than elsewhere carries a larger share. The base used this year reflects 2023 property values.

The region

Airdrie’s requisition rises from $40.2 million to $49.7 million, Cochrane’s from $19.6 million to $24.2 million, Okotoks’ from $16.7 million to $20.6 million and Chestermere’s from $13.4 million to $17.3 million. In each of these municipalities, the residential part rises faster than the non-residential part.

What it means for buyers and sellers

Property tax is part of the monthly cost of owning a home, and buyers should budget for a higher bill in 2025. When comparing listings, ask for the current tax amount, but remember that the 2025 bill will be different. Sellers can expect buyers to ask about taxes, particularly for condos, whose 2025 assessments rose a typical 22% in Calgary.

Where the money goes

The province says the tax funds K-12 education, including teachers’ salaries, textbooks and classroom resources. It is pooled through the Alberta School Foundation Fund and distributed to public and separate school boards on an equal per-student basis. It is not used to fund government operations, school capital costs or teachers’ pensions.

Practical takeaways

Look for the education line on your municipal tax bill when it arrives. Seniors can ask about the Seniors Property Tax Deferral program through the Alberta Supports Contact Centre. Owners of the Roman Catholic faith can declare it so that their education tax goes to the separate school system.

How it adds up with the 2025 assessments

The provincial rate is only part of the change. In January, the City of Calgary reported a typical 15% rise in residential assessments, with the median single residential home at $697,000 and the median condo at $359,000. The education tax on an individual bill is calculated with the local rate the City sets in the spring, so owners will not know their exact amount until their tax bill arrives.