Calgary Mayor Decries Provincial Education Tax Increase as 'Egregious' Burden
Calgary Mayor Jeromy Farkas has issued a sharp rebuke against the provincial government's decision to increase its share of property taxes through education requisitions, labeling the move "egregious" and warning it will trigger an extreme affordability crisis in the city. The provincial hike, detailed in the 2026-27 budget, will result in an average property tax increase of $340 for Calgary homeowners this year.
Budget Details and Municipal Impact
Finance Minister Nate Horner presented the provincial fiscal plan on Thursday, outlining $83.9 billion in expenses against $74.6 billion in revenues, leading to a $9.4-billion deficit. The government attributes this shortfall to declining oil prices, necessitating tightened spending and alternative revenue streams. Consequently, the province has raised its education tax requisition, which municipalities like Calgary are legally required to collect from property owners.
The City of Calgary estimates that property taxes will now surge by 21 percent, primarily due to this provincial adjustment. This contrasts sharply with the city's own efforts to minimize increases, having previously approved a modest 1.6 percent rise in the fall 2025 budget despite inheriting a potential 3.6 percent bump. Mayor Farkas emphasized that this provincial action undermines local initiatives to keep taxes manageable for residents.
Historical Context and Comparative Analysis
This year's increase follows a 14 percent provincial hike last year, cumulatively raising property taxes by 35 percent over two years—the highest in Calgary's history, according to Farkas. He stated, "This biggest tax increase in Calgary's history is being pushed down Calgarians' throats by the provincial government." The mayor criticized the lack of transparency regarding how Calgarians will benefit from these additional funds, demanding accountability and fairness from provincial leaders.
In comparison, Edmonton homeowners will see an average increase of just over $150 annually, a difference largely attributed to higher property values in Calgary. Provincial officials disclosed these figures during a technical briefing prior to the budget release, highlighting the disproportionate impact on Calgary residents.
Provincial Response and Ongoing Tensions
Finance Minister Horner defended the increase, noting that the province had provided ample warning over the past two years about the staggered approach to reaching a 33 percent adjustment. "We said we're getting to 33 percent, we didn't want to put it on the folks in one year, so we staggered it over two," Horner explained during an interview with Calgary Chamber of Commerce CEO Deborah Yedlin. He expressed surprise at the widespread shock, suggesting the move was anticipated.
Despite this, Mayor Farkas remains vocal about the need for collaborative solutions. "There are many ways that we can work together to unleash what Calgary has to offer, but Calgarians need to understand what they're getting when they're paying this much to the province," he asserted. The debate underscores ongoing tensions between municipal and provincial governments over fiscal policy and its direct effects on household affordability in Alberta's largest city.
