Calgary council approves 2026 budget, cutting the tax increase to 1.6%

On December 3, 2025, the new Calgary City Council approved the 2026 budget, the final adjustment to the 2023–2026 service plans. It cut the property tax revenue increase for existing properties from the proposed 3.6% to 1.6%.

2026 property tax revenue increase, existing properties

How council lowered the increase

• It used $50 million in investment income.
• It cancelled the previously approved 1% tax shift from non-residential to residential properties for 2026.
• Instead, a gradual 0.25% shift will take place over eight years starting in 2027.

What a typical homeowner pays

For a single residential property assessed at the median of $706,000, the municipal property tax is estimated to rise 1.6%, or $4.50 a month. Utility rates rise 3.9%, or $5.29 a month.

Housing spending

The budget includes $106 million for housing, including a 260-unit affordable project in Southview, support for downtown office-to-residential conversions and infrastructure for the Glacier A North growth application. Overall, it includes $4.6 billion in operating spending and $3.8 billion in capital investments.

What comes next: 2026 assessments will be mailed in January, the Province sets the education tax in the spring, and tax bills will be mailed in May 2026.

Compared with last year

For 2025, the City’s November 2024 budget adjustments kept the pre-approved 3.6% tax increase, and council set final rates in March 2025. For 2026, the new council went further than the original plan: the tax revenue increase for existing properties is 1.6% instead of the proposed 3.6%. Mayor Jeromy Farkas said the budget reduces “the tax increase on homeowners by nearly two-thirds.” For a typical home assessed at $706,000, the municipal tax is estimated to rise $4.50 a month, and utilities, including water, wastewater, stormwater and carts, $5.29 a month.

Targeted spending in Calgary’s 2026 budget, $ million

Where the money goes

The budget includes $514 million in targeted spending. Infrastructure gets $201 million for roads, intersections, streetlights, parks, playgrounds and facilities such as the historic Beltline YWCA, the Northeast Athletic Complex and the Plus 15 network. Public safety gets $94 million, including downtown and transit safety, 9-1-1 operations and police recruitment. Transit gets $76 million to increase service on 11 key bus routes and support the Low-Income Transit Pass. Housing gets $106 million. The City also noted $1.1 billion previously committed to water infrastructure.

The tax shift

Council cancelled the 1% shift of tax share from non-residential to residential properties that had been approved for 2026. Instead, a gradual 0.25% shift will take place over eight years starting in 2027, which the City says supports local businesses.

What it means for buyers and sellers

Lower tax growth helps carrying costs for every owner. For buyers, it slightly improves the monthly budget for a home. Your actual bill depends on your 2026 assessment, which arrives in January: if your home’s value rose faster than the typical home’s, your share of the tax will rise more. Sellers can point to lower expected tax growth when buyers ask about ongoing costs.

Local angle

The housing money supports a 260-unit affordable project in Southview, downtown office-to-residential conversions and infrastructure for the Glacier A North growth area. Those projects add supply in different parts of the city, from the east side to downtown and new communities.

The steps to your 2026 tax bill

The budget is one of three inputs. Property assessments will be mailed in January and show the assessed value used to calculate municipal tax. The Province will set the education property tax in the spring, and bills will be calculated and mailed in May 2026. The City’s typical-home estimate assumes a single residential property assessed at the median of $706,000 with metered water use of 19 cubic metres. Chief Administrative Officer David Duckworth said the investments will help ensure Calgarians have access to the services and infrastructure they rely on every day. This is also the final adjustment to the original 2023–2026 service plans and budgets approved in 2022.