By Mig29 - Own work, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=118531571
EDMONTON — Alberta is moving to a single provincial education property tax rate beginning in 2027, with the government saying the change will reduce overall property taxes by nearly $99 million in its first year.
The new system is being introduced through Budget 2027 and will establish standardized residential and non-residential education property tax rates across the province.
The residential and farmland rate will be set at $2.65 for every $1,000 of assessed property value.
Non-residential properties will be subject to a 1.5 multiplier, producing a rate of $3.98 per $1,000 of assessment.
The province says the rates will be locked in for three years, giving property owners and municipalities more certainty when planning future budgets.
Municipalities will continue collecting the provincial education property tax through regular property tax bills, with the revenue used to support Alberta’s public and separate school systems.
The government estimates the standardized rates will reduce the amount collected from property owners by about $98.7 million in 2027-28.
Some property owners, however, could face a higher education tax rate than under the existing system.
The province says it will introduce a one-time transition tax credit in 2027 for people in municipalities where the standardized provincial rate is higher than the rate they currently pay.
Details on how the credit will be calculated have not yet been released.
Premier Danielle Smith said the changes are intended to make the system more predictable for both taxpayers and municipalities.
“We’re reducing the education property tax rate, freezing the rate for three years, applying it fairly to residents and businesses in all municipalities, and giving greater certainty,” Smith said.
Finance Minister Jason Nixon said setting a single rate will give municipalities a clearer figure to use when preparing their budgets.
Municipalities will begin applying the new provincial rates to assessed property values in 2027.
The education property tax helps fund basic classroom costs, including teacher salaries, textbooks and other resources.
Municipalities collect the tax from property owners on behalf of the province.
The government says additional information on the rates, calculations and municipal implementation will be released before municipalities adopt their 2027 property tax bylaws.
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