As Canadian cities begin budget discussions, some are considering property tax increases as a potential means to address budget deficits, rising operational costs, and aging infrastructure needs.
As for next year’s budgets, Ottawa is mulling a 2.9 percent increase, Edmonton is considering an 8.1 percent hike, and Calgary will debate a proposed 3.6 tax increase. Metro Vancouver’s regional government, meanwhile, recently approved a 9.9 percent tax increase, on top of potential municipal hikes.
Ottawa: 2.9% Increase and 8% Transit Levy Hike
In a draft budget released Nov. 13, Ottawa proposed a 2.9 percent increase in property taxes, citing issues such as rising infrastructure and construction costs, and insufficient funding from provincial and federal governments. Officials said the proposed budget will “keep Ottawa running, while balancing our current realities.”
The proposed increase in property tax and transit levy amounts to an overall tax increase of 3.9 percent.
The 2025 draft budget identified $54.2 million in savings “through service reviews and continuous improvement initiatives,” the city said, bringing total savings to $207.7 million since 2023.
Council will consider the draft budget on Dec. 11.
Edmonton: 8.1% Tax Increase
The City of Edmonton has proposed an 8.1 percent property tax increase for next year’s budget, 1.1 percent more than the hike approved by city council in April.
The seven percent increase approved earlier this year will help manage budget challenges and maintain services, the city said. The additional one percent increase will go to the city’s financial stabilization reserve–containing savings for the city in case of budget shortfalls–which was depleted during the pandemic. The other 0.1 percent will help fund the 2025 municipal election.
Calgary: 3.6% Tax Increase
The city of Calgary unveiled its 2025 draft budget on Nov. 5, proposing a 3.6 percent increase in property taxes.
The proposed 3.6 tax increase comprises a 5.5 percent increase for residential properties, and a 1.4 percent increase for commercial land.
The city is also proposing higher user fees for water, waste, and recycling services to fund system infrastructure and meet the demand for more landfill capacity. “This change will help the city keep pace with inflation and population growth, ensuring that existing infrastructure is reliable and resilient,” according to officials.
Under the proposed budget, an average Calgary home with an assessed value of $700,000 would pay $8.37 more per month in property tax and $5.09 more in utility fees, according to city estimates.
Metro Vancouver: 9.9% Tax Increase
Metro Vancouver, British Columbia’s most populated region, approved a 9.9 percent property tax increase for 2025, effective Nov.1. The increase is in addition to any potential hikes in municipal property taxes, which have yet to be announced in some cities including Vancouver.
The Metro Vancouver board of directors initially planned an 11 percent increase to cover ongoing construction of the North Shore Wastewater Treatment Plant, a project first announced in 2011 that has suffered delays. After reviewing “multi-year capital programs,” directors decided to reduce the rate hike to the current 9.9 percent.
With the proposed budget, residents would pay an average of $875 annually per household for all regional services, officials said.