2023 property tax assessments: Everything you need to know

The City of Calgary says the typical residential property owner will see a 12 per cent spike in the value of their property when they receive their latest assessment.

Officials made the announcement on Wednesday while releasing details about 2023 property assessment notices, which are now in the mail.

The assessments are used to determine property and business taxes, and are based on the market value of property as of July 1, 2022, and the physical condition as of Dec. 31, 2022.

"Overall, our analysis shows that Calgary's real estate market was vibrant, reflecting strength, resilience and growth," said Eddie Lee, city assessor.

According to the city, the median assessment for a single residential home was $555,000 in 2022, up from $485,000 in 2021.

The median residential condominium assessment, meanwhile, rose from $235,000 to $255,000.

For commercial properties, the typical market value change is an increase of two per cent.

"There were over 555,000 taxable residential accounts valued at over $260 billion, and there are over 14,000 taxable non-residential accounts valued at over $57 billion," Lee said.

You can review your assessment on the city’s Assessment Search website.

In total, about 565,000 property assessment notices will go out this week.

Tax rates will be finalized in mid-March and tax bills will be mailed out in May with a due date of June 30.

The total value of the 2023 assessment roll is $351.7 billion, an increase of 38.2 billion from last year.

A CLOSER LOOK

Lee says while residential property assessments typically saw a 12 per cent increase, the spike was not uniform.

"For single residential homes, a typical market change was 13 per cent," he said.

"Single detached and semi-detached homes continued to be in high demand, especially in suburban communities. This has led to an increase in value of 16 per cent from last year, compared to a 10 per cent increase in the inner city.

"For residential condominiums, overall the typical market change was seven per cent, while townhouse condominiums increased by nine per cent and apartment condominiums increased six per cent."

Lee noted residential condominiums around the downtown core experienced less of a value change, while condos in the suburban areas increased slightly more.

The apartment market (multi-residential) experienced a typical increase of 13 per cent.

"Increased demand has returned to the city's core and to the rental market in general," Lee said. "Multi-residential townhouses have increased the most within the property type, with high-rise and low-rise properties increasing in value close behind."

WHERE IS CALGARY GROWING?

Lee says growth in new and existing communities continued to play an essential role in Calgary's development.

"Multi-residential properties experienced a staggering growth last year with a 40 per cent year-over-year increase in new permits issued.

"Townhouse construction represented most of the new multi-residential development."

Lee says Calgary's newer suburban communities experienced greater increases in market value than the more established, inner city communities.

"As a result, inner city homes, in general, will be seeing revenue-neutral tax increases, where as suburban homes will be seeing increases."

COMMERCIAL REAL ESTATE IN CALGARY

Lee says overall, commercial properties have increased in value, reflecting resilience and growth.

"Industrial and retail properties have increased in value again this year," Lee noted. "These properties are quickly becoming the backbone of Calgary's non-residential class."

He says the market value growth of two per cent isn't uniform, and industrial property values have increased by five per cent overall with many standard-size warehouses seeing value increases.

"Large format warehouses and newer constructed warehouses reflect higher value increases as Calgary continues to be an attractive distribution hub in Western Canada."

Retails properties have increased by four per cent overall.

Office properties, meanwhile, have decreased by three per cent overall. However, the downtown office market increased by four per cent "due to the strength of AA and A-Class buildings, some compression and vacancy, and tenants moving to better quality buildings," Lee said.

DOWNTOWN SHOWING 'SIGNS OF STRENGTH'

Overall, Lee says Calgary's downtown core is showing "signs of strength and market determination," which he says reflects positively for a strong real estate market.

Lee says B and C-Class office buildings continue to experience valuation pressures due to high vacancy and limited demand.

WHAT DOES IT MEAN FOR MY TAXES?

Calgary has a revenue-neutral tax system.

This means, that residential property owners who see a change in their property value that is lower than the assessed value of 12 per cent, will see less tax, whereas those who see a property value change higher than 12 per cent will pay more tax.

The typical single residential property owner saw a 13 per cent increase in their assessment, so they can expect to pay more tax.

The typical condo owner experienced a seven per cent change in their assessment, so they can expect to pay less tax.

The typical multi-residential owner experienced a  13 per cent increase in their assessment, so they can expect to pay more tax.

For commercial property owners, if they saw a change in their property value that was lower than the assessed value of two per cent, they will see less tax, and if their property value change is higher than two per cent, they'll pay more tax.

Because the typical industrial property owner experienced a five per cent change in their assessment, they can expect to pay more tax.

Because the typical office property owner experienced a three per cent decrease in their assessment, they can expect to pay less tax.

A typical retail property owner experienced a five per cent increase in their assessment, so they can expect to pay more tax.

Property owners can use the city's Property Tax Calculator to get an estimate of their 2023 property tax.

Property tax rates will not be finalized until after the release of the provincial budget in the spring to determine the provincial share of property tax and Council’s approval of the property tax bylaw.