Alberta property owners are expected to save nearly $99 million next year as Premier Danielle Smith's government moves to cut and freeze provincial education property tax rates for three years.The province announced Friday that Budget 2027 will introduce standardized education property tax rates across Alberta, replacing the existing system with rates that will remain unchanged for three years.The government estimates the changes will save residential and commercial property owners a combined $98.7 million in 2027-28.Under the new system, residential and farmland properties will be taxed at $2.65 per $1,000 of assessed value, while non-residential properties will face a rate of $3.98 per $1,000.The non-residential rate is calculated using a 1.5 multiplier.For a residential property assessed at $500,000, the provincial education property tax would amount to $1,325 annually under the new rate, before any applicable credits.Smith said the changes will provide greater predictability for homeowners, businesses and municipalities struggling with rising costs.“Albertans asked for a tax system they can count on, and Budget 2027 will deliver exactly that,” Smith said.“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.”The premier said the changes will also help municipal governments prepare their budgets by establishing consistent provincial tax rates.Starting in 2027, municipalities will apply the standardized rates to assessed property values when calculating the provincial education portion of property tax bills.However, not every property owner will necessarily see an immediate reduction.The government acknowledged that some communities currently have education property tax rates below the proposed standardized rate.To address that difference, the province will introduce a one-time transition tax credit in 2027 for affected property owners.The credit is intended to reduce the financial impact on households facing an increase because of the new provincial rate.The government has not yet released detailed calculations showing how much individual municipalities or property owners will save..Finance Minister Jason Nixon said locking in the rates for three years will give taxpayers greater certainty while maintaining funding for Alberta schools.“We are giving Albertans and municipalities a clear rate they can plan around and helping put more money back in families’ pockets,” Nixon said.“Locking in one rate for three years brings discipline and certainty to how this tax works, and it means stable, sustainable funding for classrooms across the province.”Education property taxes are collected by municipalities on behalf of the provincial government and help fund Alberta's public and separate school systems.The money supports basic classroom expenses, including teacher salaries, textbooks and other educational resources.Municipalities will continue collecting the provincial levy through regular property tax bills, meaning homeowners and businesses will not receive a separate provincial education tax bill.Municipal Affairs Minister Dan Williams said standardizing the rates will create a more consistent system across Alberta.“No matter where Albertans call home, they should be able to count on a fair and consistent approach to education property taxes,” Williams said.“Applying the same provincial rates across municipalities will create a more consistent system and ensure Albertans are treated fairly, regardless of where they live.”The announcement also received support from the mayors of Alberta's two largest cities.Calgary Mayor Jeromy Farkas welcomed the changes, saying predictable tax rates will help both residents and city officials manage their finances.“This is great news for Calgarians and all Albertans,” Farkas said.“Giving taxpayers certainty is critical, especially in a time of challenging inflation and rising costs.”Farkas said having the provincial rates established before municipal budget deliberations will help Calgary council determine its spending priorities.“Knowing these numbers before we get into our budget debate provides clarity that will help us deliver for Calgary’s priorities,” he said..Edmonton Mayor Andrew Knack also expressed support for the new approach.“I welcome this change that simplifies the process for calculating the province’s education property tax while also providing more transparency to Edmontonians,” Knack said.Although the provincial rates will be frozen for three years, individual property tax bills could still change if property assessments rise or municipalities adjust their own tax rates.The province said additional information about the new rates, municipal calculations and transition credits will be released before municipalities approve their 2027 property tax bylaws.The changes are expected to take effect in 2027 as part of the provincial government's next budget.
