What it means, why your assessment changed, how tax rates work, and historical tax rate trends.

🏡 1. What Is a Property Assessment?

A property assessment in Calgary is the City’s estimate of what your home might sell for on the open market at a specific valuation date.

⚠️ Important: An assessment is not your property tax bill — it’s just a value estimate.

Assessments help determine how the City divides the total tax burden among all property owners, but they do not, by themselves, tell you how much tax you’ll actually pay.

🔍 2. Assessment vs Property Tax: Why They’re Not the Same

The key difference lies in this formula:

Property Tax=Assessed Value×Tax Rate\textbf{Property Tax} = \textbf{Assessed Value} \times \textbf{Tax Rate}Property Tax=Assessed Value×Tax Rate

That means your tax bill depends on:

1. Your assessed value, and

2. The tax rate set by the City and Province.

📌 Important Insight:

If your assessment goes up, it does not automatically mean your tax bill will go up.

The City calculates taxes based on the relative share of your assessed value compared to all properties in Calgary and the total amount of revenue needed — not just your individual property.

📊 3. Calgary Property Tax Rates: 2018–2025

Here’s how Calgary’s combined residential property tax rate has changed over time. These numbers include both the municipal and provincial/education portions:

📌 Sources: Official City of Calgary tax rate data and municipal tax summaries.

Notes:

• The “combined rate” is what actually gets applied to your assessment to calculate your tax bill.

• Rates are adjusted yearly based on City Council budgets and provincial education tax requirements.

📈 4. What This Trend Tells Us

📍 Property Tax Rates Have Generally Declined

From 2018 to 2025, the combined residential tax rate in Calgary has trended downwards, despite fluctuation.

👉 In 2025, the combined rate was 0.61803%, lower than the early 2020 rates (near 0.75%).

📍 But Lower Rates Don’t Always Mean Lower Tax Bills

Even though the rate has come down, assessed values have increased, meaning:

• Your tax amount paid may still be higher than in past years

• A lower rate can be offset by a higher assessment

📊 5. Example: Hypothetical Tax Bills Over Time

Let’s compare what happens if a home were assessed at $700,000 in different years:

Even though the 2025 rate is lower than 2020, the actual amount paid also depends on assessment trends.

📍 6. What to Expect in 2026

City Council has approved a 1.6% increase in municipal property tax revenue for 2026. That means:

• The municipal portion of the tax rate will rise slightly

• The final combined 2026 tax rate (municipal + provincial/education) will be confirmed once Alberta finalizes the education tax portion

⚠️ Final official rates for 2026 are typically published later in the spring each year.

🤔 7. When a Higher Assessment Doesn’t Mean Higher Taxes

Your assessment and your taxes can move independently because:

✔ If everyone’s assessments go up by the same amount, your relative share stays the same, so your taxes may not change much.
✔ If overall assessments rise faster than tax revenue needs, the tax rate could fall to balance it out.
✔ A higher assessment but stable or reduced tax rate can mean the tax bill stays flat or increases only slightly.

📍 8. How to Review Your Assessment

Check:

• Whether the property details in the City’s records are correct

• How your home compares to recent sales of similar properties

• How your assessed value relates to market reality

If you believe the assessment is incorrect, you can request a review with the City — but mistakes must be factual (like incorrect size or features) rather than just “I think the market is different.”

📅 9. Join the City’s FREE Webinar

Ask the City Assessor – 2026 Property Assessment Q&A
📆 January 28, 2026
🕖 7:00 PM (Online, Microsoft Teams)
💻 Free to attend

This webinar gives homeowners insight into:

• How assessments are calculated

• What affects assessment changes

• How the process works (not individual property specific)

👉 Official link:
https://www.calgary.ca/property-owners/assessment/ask-the-assessor.html

🧾 Key Takeaways

🔹 Assessment = Market Value Estimate
🔹 Tax Bill = Assessment × Tax Rate
🔹 A higher assessment does not automatically mean higher taxes
🔹 Understanding both rates and values is essential
🔹 2026 tax rates will be finalized later in the spring

— REAB | reab.ca

1️⃣ Market Direction: From Seller’s Market → Balanced / Buyer-Leaning

Calgary’s housing market has transitioned from strong seller-driven conditions into a more balanced environment, with this trend expected to continue through 2026. The shift is not caused by a collapse in demand, but rather supply growth outpacing demand. 2026 CREB Forecast Report

Key drivers:
• New home, resale, and rental supply all increasing
• Migration growth slowing
• Sales returning to long-term averages

This signals normalization, not downturn. 2026 CREB Forecast Report

2️⃣ 2026 Price Forecast by Property Type

Higher-density segments face pressure from increased inventory, while detached and semi-detached homes are expected to remain largely stable. 2026 CREB Forecast Report

3️⃣ Why Supply Is Rising

• 2025 housing starts near record highs
• 26,000+ units currently under construction
• Nearly half of new supply is rental

As completions continue in 2026, inventory levels are expected to remain elevated, limiting price growth. 2026 CREB Forecast Report

4️⃣ Rental Market Cooling

• Vacancy rates rising
• Rent growth slowing
• International migration declining

More rental supply + slower demand = weaker investor momentum, especially impacting the condo segment. 2026 CREB Forecast Report

5️⃣ Economic Backdrop

The economy remains resilient, but no longer in an expansionary surge — contributing to a cooling housing market environment.

CREB® 2026 Forecast Calgary and Region Yearly Outlook Report

https://www.creblink.com/-/media/Public/CREBcom/Housing_Statistics/2026_Forecast/2026_Forecast_Report.pdf

— REAB | reab.ca

Canada’s latest Consumer Price Index (CPI) release closed out 2025 with a surprise uptick. Statistics Canada reported that headline inflation rose to 2.4% year-over-year in December 2025, above expectations that inflation would hold steady near the prior month’s pace.

At first glance, a higher CPI print can look concerning. However, when we look “under the hood,” the details suggest there is limited reason to assume a major change in interest-rate direction based on this report alone.

For Alberta and Calgary real estate, the key takeaway is not simply the CPI headline — but what inflation implies for interest rates, borrowing costs, and buyer timing in 2026.

1) Why inflation rose to 2.4% — and why it may not be as alarming as it looks

The December CPI print was higher than expected, but much of the acceleration appears to reflect temporary distortions and year-over-year comparison effects, rather than a broad re-acceleration in underlying inflation pressure.

Statistics Canada noted that the rebound from the federal government’s temporary tax holiday (GST relief) was a key factor behind the higher year-over-year CPI figure. In late 2024, removing GST on selected items lowered prices for certain categories such as dining out and other eligible goods. As a result, the year-over-year comparison in December 2025 mechanically pushed CPI higher.

One notable example was restaurant meals, where prices saw a large annual increase in December, contributing to the acceleration in the headline CPI number.

In short: the “surprise” was real, but the composition suggests it was at least partly driven by a base effect rather than a structural inflation shock.

2) Food inflation remains elevated — Canadians still feel the pressure

While headline inflation can move due to short-term factors, food prices remain a major pain point for households.

In December, the price of food purchased from grocery stores rose notably year-over-year. Certain items such as coffee and beef also posted strong annual increases. Even where some categories saw monthly stabilization, the overall reality is that grocery costs remain materially higher than they were a few years ago.

This matters for consumer psychology: even when inflation is trending lower overall, the categories people “feel” most — groceries, shelter, and transportation — drive perception and spending behaviour.

3) Gasoline provided offset — energy remains a volatile inflation driver

Offsetting some of the inflation pressure, gasoline costs declined meaningfully year-over-year in December. Energy tends to be volatile, and changes in crude oil supply and global market dynamics can swing CPI readings from month to month.

That’s why professional inflation interpretation focuses less on any single energy-driven month and more on persistent, underlying inflation trends.

4) The Bank of Canada’s real focus: underlying inflation (not just the headline)

For interest-rate direction, headline CPI is only part of the picture.

The Bank of Canada places significant attention on underlying inflation measures (such as CPI-trim and CPI-median), which help filter out volatile components and provide a clearer view of the trend. Recent data has shown key underlying metrics continuing to moderate, suggesting inflation is trending closer toward the central bank’s target range over time.

This is why many economists argue that while the headline CPI surprise “looked hot,” the internal details were less concerning — particularly because core measures appear to be improving gradually.

5) Interest-rate implication: why this CPI report may not force a policy shift

This inflation report arrived just before the Bank of Canada’s first interest-rate decision of 2026. The central bank’s benchmark rate has been held at 2.25%.

Based on the composition of the inflation data — including base effects and volatile categories — many market participants interpret this report as consistent with a continued hold scenario, rather than a catalyst for renewed tightening.

At the same time, economists remain cautious: while progress exists, underlying inflation still needs to clearly settle closer to the Bank of Canada’s 2% target before sustained policy easing becomes likely.

6) What this means for Alberta & Calgary real estate in 2026

For Calgary buyers and sellers, CPI data matters because inflation influences interest rates, and interest rates influence mortgage affordability and market activity.

There is an important market reality to highlight:

Housing markets often move on rate expectations — not just rate changes.

When the market begins to believe that interest rates may become less restrictive over time, buyer confidence can return quickly. In Calgary, this can be amplified by tight inventory conditions in certain segments.

That is why Calgary often feels slow for a period — and then accelerates rapidly when conditions shift.

7) REAB’s perspective: don’t “guess the Bank” — build readiness

Attempting to time real estate decisions around monthly CPI headlines is rarely effective. A stronger approach is to build readiness early, so you can act decisively when the right opportunity appears.

For Calgary buyers, readiness includes:

1. Pre-approval clarity — knowing your true borrowing power

2. Stress-tested affordability — planning conservatively

3. Defined target strategy — communities, property type, and walkaway rules

The biggest risk is not buying too early. The biggest risk is being unprepared when the market turns faster than expected.

Conclusion

December’s inflation report delivered a headline surprise, but the underlying drivers suggest limited cause for immediate alarm. For Alberta and Calgary, the more relevant story is how inflation shapes interest-rate expectations — and how quickly housing activity can respond once confidence shifts.

If you’d like my one-page Calgary guide — “Inflation → Rates → Housing: A Calgary Buyer’s Checklist” — comment or DM “CPI” and I’ll send it to you.

— REAB | reab.ca

2025 marked a clear transition from a seller’s market to more balanced conditions across Calgary.

Market Overview:

Total sales: 22,751 (↓16% YoY, in line with long-term trends)

New listings: 40,000+ (↑9% YoY)

Average benchmark price: $577,492 (↓2% YoY)

Improved inventory levels for the first time in three years

By Property Type:

Detached Homes

Prices +1% YoY, with City Centre remaining the strongest. Higher supply weighed on prices in the Northeast and East.

Semi-Detached Homes

Prices +3% YoY, led by City Centre gains, offsetting softness in other areas.

Row Homes

Prices −2% YoY, with sharper declines in the Northeast and North due to increased supply and new-home competition.

Apartment Condos

Prices −3% YoY, the largest adjustment in 2025. Market conditions shifted clearly in favour of buyers by mid-year.

Key Takeaway

Market performance varied significantly by location, price range, and property type, highlighting the importance of targeted strategy.

Looking Ahead

CREB®’s 2026 market outlook will be released on January 20, 2026.

Andy Kwok, DBA, REALTOR®

ABR® | CCS | CIPS | CRB

Andy@REAB.ca

587-969-3083

Your Vision, Our Mission.

www.reab.ca