Alberta's 2026 Budget Proposes Higher Education Tax Requisition for Calgary
Due to higher assessed property values, Calgary accounts for more than one-third of the total tax bill. The Alberta government is poised to hit Calgary homeowners with a bigger slice of the province's education tax, as outlined in the recently tabled 2026-27 fiscal plan.
Budget Details and Financial Impact
Finance Minister Nate Horner presented the provincial budget on Thursday, revealing a spending plan that includes $83.9 billion in expenses and $74.6 billion in revenues, resulting in a substantial $9.4-billion deficit. Horner described this budget as the government's strategy to navigate another challenging year, following a similarly turbulent 2025.
"This year, Alberta's finances reflect global uncertainty, rising costs and our staggering population growth, all of which are placing real pressure on our essential services, stretching our system's capacities to their limit," Horner stated during an embargoed news conference before the budget was officially tabled.
Education Tax Requisition Increases
The total education tax requisition for the province will reach just under $3.6 billion this year, marking a significant increase from the $3.1 billion collected in 2025. This tax represents the provincial portion of property taxes, designed to cover approximately one-third of education operating costs across Alberta.
Calgary's contribution to this education tax has grown substantially, with the city's portion amounting to $1.247 billion in 2026. This represents a notable jump from $1.037 billion in 2025 and $882 million in 2024. Due to higher assessed property values in the city, Calgary now accounts for more than one-third of Alberta's total school tax revenues.
Provincial officials confirmed during a technical briefing that this escalation will result in an average property tax increase of $340 this year for Calgary homeowners. The education tax requisition hike comes alongside a temporary reduction in infrastructure funding from the Alberta government, creating a dual financial pressure on the municipality.
Infrastructure Funding Changes
To support municipal infrastructure projects, Calgary will receive $249 million in capital grants from the province's Local Government Fiscal Framework (LGFF). This funding mechanism adjusts based on provincial revenues, and while Calgary's allotment is approximately $6 million less than last year, the budget indicates the LGFF pool is expected to increase.
The LGFF fund, which was introduced in 2024, is projected to grow from $800 million this year to $895 million for the next two years. Last year, the fund totaled $820 million. This funding can be allocated toward various municipal infrastructure needs including:
- Roads and bridges construction and maintenance
- Public transit vehicles or facilities
- Water and wastewater system upgrades
- Waste management facilities or equipment
- Libraries or community centres
The budget notes that while infrastructure funding support is down this year, it is expected to rebound in subsequent years as provincial revenues stabilize and the LGFF allocation increases.
Broader Context and Implications
The education tax increase comes at a time when Calgary continues significant development projects, including construction on the Werklund Centre and the Olympic Plaza Transformation projects. These municipal investments coincide with the provincial government's shifting financial demands on Calgary property owners.
The disproportionate burden on Calgary homeowners reflects both the city's growing property values and its significant contribution to provincial education funding. With Calgary comprising more than one-third of Alberta's school tax revenues, the city's economic growth directly translates to increased financial obligations for its residents through the education tax requisition system.
