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THOMPSON, HILL: Don’t be fooled — Smith government raised taxes in latest budget

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The Smith government has failed to rein in spending and Albertans will pay the price. Last month, the government tabled its budget, which includes a projected $9.4-billion deficit this fiscal year and property tax hikes. For families across Alberta, that could mean hundreds of dollars in extra property taxes and/or higher rents this year. And for many Albertans, this tax increase comes on top of years of rising property tax bills.

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Albertans face two property taxes — one paid to their municipal government and the “education property tax,” which goes to the province. In the recent budget, the Smith government hiked the education property tax to $2.84 per $1,000 of tax-assessed home value — up from $2.72 in 2025. While the exact rate on your property tax bill will vary depending on where you live, make no mistake — property taxes are going up.

THOMPSON, HILL: Don’t be fooled — Smith government raised taxes in latest budget Back to video

Consider the impact on a Calgary family with a typical single-family home. In 2026, that family will face an “education property tax” bill from the province of about $1,949 — $339 more than in 2025. That’s in addition to the roughly $2,747 it will owe in municipal property tax to city hall, for a combined annual bill of roughly $4,696. Mayor Jeromy Farkas has been eagerly telling Calgarians the Smith government, not the city, is responsible for the lion’s share of property tax increases in 2026. That’s true, but Calgarians will also face an increase in their municipal property tax bill this year of an estimated $49 for the typical single-family home.

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The blame game may favour Calgary this year. But in reality, over a longer time horizon, both the City of Calgary and the provincial government have ratcheted up property taxes. In 2016, a typical single-family home in Calgary faced an annual property tax bill of about $2,963 — roughly $1,780 for the city and $1,183 for the province. In other words, the owner of a typical single-family home in Calgary now faces an annual property tax bill that’s about $1,733 higher than it was a decade ago, reflecting sharp increases in both the municipal (+$967) and provincial (+$766) property taxes. Calgary is not unique in this regard. Municipal property taxes in Edmonton, Red Deer and Medicine Hat are slated to rise this year. Smith’s decision to raise the provincial property tax will simply add even more to homeowner tax bills.

Spending out of control

Finally, while these tax hikes are most visible for homeowners, they will also affect renters, as landlords increase rents in response to the tax increase.

Amid a large provincial budget deficit, Albertans will pay more in provincial property tax this year. At the same time, many municipal governments have been collecting higher property taxes year after year. Until both the provincial government and the municipalities get spending under control, property tax bills in Alberta will likely continue to grow.

Austin Thompson and Tegan Hill are analysts at the Fraser Institute.

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