Municipal property taxes are set by the City and account for approximately 70% of your total property tax amount. The calculation of each homeowner’s share of municipal property taxes is based on 2 factors:
- The City Budget
(the amount the City requires to continue offering municipal programs and services).
- The total assessed value of all properties in our city.
The costs of services are distributed among all Edmonton properties, in the following manner:
budget ÷ total assessed value of all properties
= municipal tax rate
Then, to determine the exact amount each homeowner is required to pay, the City applies this tax rate to the value of your property in the following manner:
your property assessed value x municipal tax rate
= your municipal property taxes
Overall, changes in property values do not affect the amount the City requires to continue providing municipal programs and services. If your property’s assessed value changes more or less than the average change in Edmonton, your tax increase will be more or less than the average tax increase.