Canada

Calgary proposes four-year budget with 15 percent property tax hike

The city's four-year plan includes major spending on water infrastructure, transit and police.

By Elise Tremblay, Editor-in-Chief
November 10, 2026

Analysis

The City of Calgary has proposed a four-year budget that would raise property taxes by 15 percent next year, the largest percentage hike in at least three decades. The plan, released to council and the public on Tuesday, forecasts annual increases of 10 percent in 2028, 7.7 percent in 2029 and six percent in 2030. Combined with previously approved water rate hikes, the average homeowner would pay an extra $53 per month in 2027. City council will debate and amend the budget later this month before a scheduled approval.

For a typical single-family home assessed at the median value of $688,000, the property tax increase alone would add about $37 per month next year. The additional $16 per month stems from increases to water, waste and recycling fees. Over the full four-year cycle, the combined monthly cost of municipal taxes and fees for such a home would rise by $204 by 2030. "This budget reflects a number of factors, including what Calgarians told us, council’s priorities, growth, service demand, infrastructure needs and affordability," said the city's chief financial officer Les Tochor.

The proposed operating budget for 2027 is nearly $6 billion, an increase of roughly $850 million from this year. The four-year capital plan outlines $21 billion in spending, including $13 billion for new infrastructure, which city officials said is roughly double recent capital spending. "Calgary is growing. And the infrastructure and services Calgarians rely on are facing increased demand, rising cost and aging assets," said Calgary’s chief administrative officer David Duckworth in council on Tuesday.

Investing in water and transit

A significant portion of the capital budget is dedicated to addressing aging infrastructure, a priority for council following two catastrophic breaks in Calgary's key water main in recent years. The plan includes approximately $5.5 billion for water, wastewater and storm-water infrastructure. Major projects include $1.7 billion for upgrades to the Pine Creek and Fish Creek wastewater treatment plants and $616 million for water feeder main network projects. Public transit receives substantial funding, with $300 million allocated for new buses. The budget also continues spending on the CTrain, including for the long-delayed Green Line and a Blue Line extension to a new station at 88th Avenue N.E. Road and bridge work is another focus, with $420 million for pavement rehabilitation and $178 million to rehabilitate and protect city bridges. Almost $100 million is set aside for transportation safety improvements for pedestrians, drivers and cyclists.

Scrutiny on police and affordability

The Calgary Police Service has requested its largest ever budget, including a 73 percent increase in capital spending over four years amounting to $192 million. The budget proposes funding the full request, which would go toward vehicles and facilities. Some councillors have already said the large ask will require scrutiny in the coming weeks to see if some spending can be deferred. The budget also includes $102 million to upgrade or build new fire and emergency response stations.

The proposed tax hikes come as the city grapples with an affordability crisis. Some councillors have stressed a need to bring the increases down during the upcoming deliberations. The budget notes that property values in Calgary are expected to decline slightly in 2027, which will reduce the provincial education property tax portion of the bill. Combined with a provincial rate freeze, the city estimates this will save the typical homeowner $125 next year, bringing the overall blended tax increase down to 6.9 percent. Mayor Jeromy Farkas highlighted this reduction, though the final figures depend on both city and provincial decisions.

City debt is projected to rise from $4.2 billion in 2027 to $10 billion in 2030 to help pay for long-term infrastructure. The budget document warns that while debt remains within council-approved limits, higher debt payments will reduce funding flexibility for future priorities. Residents can begin submitting written comments or registering to speak to council about the budget starting Tuesday. Council is scheduled to approve the final four-year plan later this month.

With files from Global News, CBC News and Calgary Herald