When it comes to owning a home in Edmonton, understanding property taxes is crucial. However, the process can seem complex and daunting for many homeowners. In this blog, we'll break down how property taxes in Edmonton are calculated and provide insights into what you can expect for 2024 and 2025.
How Are Property Taxes Calculated?
Property taxes in Edmonton are calculated based on two main factors: the assessed value of your property and the tax rate set by the City of Edmonton.
Assessed Value of Your Property:
Every year, the City of Edmonton assesses the value of properties across the city. This assessment is based on the market value of your property as of July 1st of the previous year. The assessment takes into account various factors, including the size of your home, the lot size, location, and recent sales of similar properties in your area.
For example, the assessed value used for your 2024 property taxes would be based on the market conditions and property characteristics as of July 1, 2023.
The Tax Rate:
The tax rate is set by the City of Edmonton and is expressed in "mills" or "millage rate." One mill represents $1 of tax for every $1,000 of the assessed property value. The city determines the tax rate based on the budgetary needs for public services, including schools, emergency services, and infrastructure maintenance.
Each year, the City Council approves the tax rate based on the financial requirements of the municipality. This rate can fluctuate based on economic conditions, inflation, and the city's budgetary needs.
What Can Homeowners Expect in 2024 and 2025?
As we move into 2024 and 2025, several factors may impact your property taxes:
Rising Home Values:
Edmonton's real estate market has seen fluctuations in recent years, with some areas experiencing rising home values. If your property’s assessed value increases, you may see a corresponding rise in your property taxes, even if the tax rate remains unchanged.
City Budget Adjustments:
The City of Edmonton may adjust tax rates based on its budget needs. With ongoing investments in infrastructure, public transit, and other community projects, there could be slight increases in the tax rate to accommodate these expenses. It’s important to stay informed about City Council decisions, as these will directly impact your tax bill.
School Taxes:
A portion of your property taxes goes towards funding public education. In 2024 and 2025, school taxes may fluctuate depending on provincial funding allocations and local school board requirements. The amount allocated to school taxes is determined by the province and can vary each year.
Tax Relief Programs:
For homeowners facing financial difficulties, Edmonton offers tax relief programs, such as the Seniors Property Tax Deferral Program and the Tax Installment Payment Plan (TIPP). These programs can provide relief by deferring payments or allowing you to pay in monthly installments rather than a lump sum.
Planning for the Future
Understanding how property taxes are calculated and what factors influence them can help you plan your finances better. Here are a few tips to keep in mind:
Review Your Assessment: Every January, the City of Edmonton sends out property assessment notices. Review yours carefully. If you believe your property has been over-assessed, you can file a complaint through the City's assessment review board.
Budget Accordingly: Since property taxes are a recurring expense, it’s wise to budget for potential increases each year. Setting aside funds regularly can help ease the financial burden when the bill arrives.
Stay Informed: Keep an eye on City Council meetings and decisions that may impact property taxes. Being proactive will ensure you're not caught off guard by sudden increases.
Final Thoughts
While property taxes can seem complex, understanding the basics of how they are calculated and what factors influence them can help you better manage this important aspect of homeownership. As we approach 2024 and 2025, staying informed and planning ahead will allow you to navigate any changes in property taxes with confidence.
If you have any questions or need further guidance, the Iconic YEG Real Estate Team is here to help. Contact us today to discuss your property tax concerns or any other real estate needs.
Caitlin Jane Heine
Owner | Agent
587-336-3176
caitlin@iconicyeg.com
www.iconicyeg.com