The Steady Climb of Edmonton's Property Taxes
Edmonton residents have witnessed a significant transformation in their property tax bills over the past decade, with residential property taxes climbing by nearly 45 percent since 2015. This period marks a fundamental shift in how the city approaches budgeting, moving from annual plans to comprehensive four-year cycles that have seen three different mayors and multiple councils steering the city through economic challenges.
A Decade of Incremental Increases
The current 6.4 percent tax hike proposed in the newest city budget continues this upward trend as Edmonton works to recover from the financial impacts of COVID-19. Looking back at the tax trajectory reveals a story of steady increases influenced by provincial funding changes, infrastructure projects, and global economic forces.
In 2015, under Mayor Don Iveson, Edmonton homeowners faced a 2.1 percent increase that set the residential property tax rate at 0.0055. At that time, the owner of a typical $401,000 home would have paid approximately $2,205 in property taxes.
The following year brought a more substantial 3.8 percent hike after the provincial government, led by Premier Rachel Notley's NDP, reduced infrastructure grants to municipalities. This increase also helped fund the Valley Line LRT expansion, which continues with its second phase of construction today.
Economic Forces and Political Decisions
Global economic factors have repeatedly influenced Edmonton's tax decisions. In 2017, the city managed to limit the increase to 2.85 percent by taking advantage of low oil prices that reduced municipal fuel costs. City officials celebrated this as the smallest tax hike in years, though the pattern proved temporary.
By 2018, taxes rose again by 3.5 percent, and council debates included then-councillor Andrew Knack voting against a provision that would increase budgets for individual councillors' offices. The measure still passed with overwhelming support.
Edmonton achieved another milestone in 2019 with a 2.6 percent increase that beat the previous "lowest tax rate increase in years" record. This period also saw the introduction of gradually increasing service fees for waste removal, adding $1.15 per year over four years.
The most challenging financial period arrived in 2020 when Premier Jason Kenney's government eliminated the City Charter for Edmonton and Calgary while cutting Grants in Lieu of Taxes funding in half. Compounding these provincial changes, the global pandemic forced widespread closures and the price of oil collapsed to under $20 per barrel. Despite these pressures, the city approved a 2.1 percent tax increase for homeowners while business owners received a rare year with no property tax increases at all.
Throughout this decade of change, Edmonton's cumulative residential property tax increase of 44.89 percent remains notably lower than the 70 percent increase experienced during the preceding ten-year period, demonstrating both the consistency and relative moderation of the city's approach to municipal finance during challenging economic times.
