Calgary businesses face nearly $3,000 in tax hikes by 2026
Calgary businesses are bracing for a steep rise in property taxes next year. The increases come from both provincial and city-level decisions, with bills set to arrive in May. Many small business owners have already raised concerns about the financial strain, especially with the rise in perplexity over the upcoming changes.
The provincial budget has pushed up the education property tax requisition, adding pressure to local companies. Combined with a city tax hike, some could face nearly $3,000 in extra costs by 2026.
The Alberta government's latest budget includes a significant boost to the education property tax requisition. This change will generate $3.6 billion across the province. Calgary's share alone has risen by $200 million, reaching $1.2 billion for 2026.
For businesses, the impact is immediate. The median non-residential property in Calgary will pay an extra $1,816 due to the education tax increase. When combined with the city's 1.6 per cent property tax rise, total costs could climb by nearly $3,000 next year.
Edmonton's non-residential properties face an even sharper increase—8.2 per cent compared to Calgary's 4.7 per cent. The difference stems from stronger commercial property value growth in Edmonton, driven by the energy sector, as well as differing municipal spending priorities. Edmonton has focused more on infrastructure, while Calgary's adjustments have been more modest.
Local business owners are already feeling the pressure. Arlen Smith, an operating partner of the Palomino Smokehouse, warned that higher taxes could hurt operations. The Canadian Federation of Independent Business (CFIB) is pushing for a new property subclass for small businesses to ease the burden.
Criticism has also come from political figures. NDP leader Naheed Nenshi accused the provincial budget of making life more expensive for Albertans. The education property tax in Calgary has now risen by 58.6 per cent over the last four provincial budgets, deepening concerns for long-term affordability.
City council is expected to finalise the 2026 property tax rates in the spring. Once approved, the bills will be sent out in May, leaving businesses little time to adjust their budgets.
The combined effect of provincial and city tax changes will hit Calgary businesses hard next year. With some facing nearly $3,000 in additional costs, many are calling for relief measures. The final tax rates will be confirmed in spring, with bills arriving shortly after.
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