Your Property Taxes FAQ
- How are my taxes calculated?
- How does City Council decide how much to collect from property taxes?
- What are my property taxes made up of?
- What are local improvement charges?
- What do municipal taxes pay for?
- Where and when do I have to pay my property taxes?
- Is there a monthly payment program?
- How do I change the mailing address for my property tax account?
- Is there a penalty for not paying my taxes on time?
- 1. How are my taxes calculated?
Your property tax bill is made up of taxes for municipal requirements and provincial taxes for schools, as shown in the following equation:
Tax Calculations:
Municipal Property Taxes =
Assessment x Municipal Mill RateProvincial Education (School) Property Taxes =
Assessment x Education Tax RateTotal Property Taxes = Municipal Property Tax + Provincial Education (School) Property Taxes
- 2. How does City Council decide how much to collect from property taxes?
- First, City Council sets the budget based on citizens' priorities for programs and services.
- Then, the City projects how much revenue it expects to receive from grants, user fees, permits, fines and investments.
- The City then calculates the remaining revenue requirement, which must be realized through the property tax.
- The Alberta Government sends the City of Edmonton a bill (requisition) for its share of the provincial education property tax requirement.
- The City determines each property owner's fair share of the property tax requirement based on their property's market value assessment.
- First, City Council sets the budget based on citizens' priorities for programs and services.
- 3. What are my property taxes made up of?
There are two parts to every property tax bill and three parts to some property tax bills. They are:
- A municipal portion – based on the budget City Council sets at the end of each year.
- A provincial education portion – the Alberta Government determines the amount of education property tax (requisition) each municipality in Alberta will pay and typically advises the city each April. The City of Edmonton is required to collect this tax from property owners on behalf of the province.
- Some residents (about 25% of all Edmonton properties) also pay local improvement charges.
- 4. What are local improvement charges?
A local improvement charge is an annual amount a property owner is required to pay to the City (construction costs and interest) over a specified number of years for improvements constructed in the area of their property. Examples of local improvement charges are street paving, alley paving, concrete curbs and gutters. This tax may also be referred to as a "Special Frontage Assessment" or "Local Benefit Assessment".
There are also various types of local improvements that can be included on the tax roll without an expiry year. An example of this type of local improvement is alley lighting maintenance.
Local improvements, other than perpetual charges such as maintenance or encroachment, can be pre-paid any time during the amortization period to avoid future years' interest charges. If applicable, pre-payment information is included in the annual tax notice package.
- 5. What do municipal taxes pay for?
Your municipal tax dollars help pay for police, fire prevention, snow removal, road construction and maintenance, transportation services, libraries, social services and community grants, bylaw enforcement, planning and economic development, parks, playgrounds and other recreational facilities and services.
- 6. Where and when do I have to pay my property taxes?
Property taxes are due on June 30, 2011.
Tax payments may be made at most banks, credit unions and trust companies, or through telephone and Internet banking services. Tax payments are no longer accepted at Registry Agent Offices.
Payments by cheque only (write your account number on the payment), can be deposited in Quick Payment drop boxes located on the main floor of City Hall and Chancery Hall, or by mail to:The City of Edmonton
Tax Collection Section
P. O. Box 1982
Edmonton, AB T5J 3X5- 7. Is there a monthly payment program?
Yes. Taxes may be paid in monthly installments by automatic bank withdrawal without incurring penalty.
Please note the following details about the monthly payment program:
- The monthly installment amount is based on 1/12 of the annual tax levy, and is payable by automatic bank withdrawal commencing January 1st for the current year.
- If you enter into the program after January 1st, an initial payment equal to the total of all past due installments plus an administration fee is payable on application.
- Under this auto withdrawal program, payments made after June 30th are not subject to penalty nor is interest paid on installments received during the months of January through June.
- Contact the Customer Services Office at 780-496-6388 for more information. You can also submit an online request for an application for the Property Tax Monthly Payment Plan.
- 8. How do I change the mailing address for my property tax account?
Mailing address changes must be made in writing by the property owner. They can be faxed to our office at 780-496-8896, or mailed to:
City of Edmonton
Assessment and Taxation Branch,
7 th Floor, Chancery Hall,
3 Sir Winston Churchill Square,
Edmonton, AB T5J 2C3- 9. Is there a penalty for not paying my taxes on time?
With the exception of taxes paid under the Monthly Payment Program, unpaid taxes are subject to the following late payment penalties:
Current Taxes:
- July 1: six per cent
- August 1 - December 1: An additional one per cent per month
- January 1 - December 1: one per cent per month
