Edmonton homeowners are facing a significant increase in their property tax bills after city council finalized its latest financial plan. The newly passed budget, totaling a massive $6 billion when combining capital and operating expenditures, comes with a 6.9 per cent property tax increase for 2026.
Balancing Growth and Taxpayer Costs
City councillors spent a week deliberating on how to fund essential services and infrastructure for a growing city without placing an excessive burden on residents. The result is a dual-focus budget that aims to meet Edmonton's expansion demands while maintaining current service levels. The $2.3-billion capital budget is financed separately from the tax levy, relying on reserves, grants, and debt.
Major Capital Projects Funded
The capital portion of the budget allocates funds to numerous construction and improvement projects across the city. Some of the most notable allocations include:
$7.3 million to relocate bus, LRT, and transit security control to a new facility.
$7 million for constructing ramps from Anthony Henday Drive to 137 Avenue.
$6.6 million each for two new fire halls planned for the Walker and Athlone communities.
$6.4 million for improvements to the historic Rossdale Power Plant.
$5 million for the ongoing Windermere District Park project.
Other significant investments include $3.35 million for renewing transit facilities, $3.2 million for a playground at the future Cavanagh School, and $2 million to upgrade bike racks on the city's bus network.
Operating Budget: Funding Daily Services
Turning to the $3.93-billion operating budget, which pays for the city's day-to-day services, the funds are distributed across major departments. The largest share, $900 million, is earmarked for city operations. This encompasses everything from public transit and road maintenance to snow plowing and recreational facilities.
A substantial $877 million is allocated for corporate expenditures. This category covers the administration of the city's various accounts and endowment funds. Notably, this represents an increase of nearly $200 million compared to the budget set just two years ago, highlighting rising administrative and financial management costs.
The Bottom Line for Taxpayers
The passage of this budget in early December 2025 sets the financial course for Edmonton for the coming year. While the capital projects promise long-term infrastructure benefits, the immediate impact for residents is clear: a 6.9 per cent hike on their property tax bills to help fund the city's ambitious $6-billion spending plan. The council's challenge was to fund growth and services in a large, expanding city, a balancing act that ultimately results in increased costs for Edmonton homeowners.
